AT&T has announced that the newly activated or the upgraded iPhones will be eligible for the company’s mobile insurance plan, which costs $4.99 a month, AppleInsider reported.

Effective July 17, 2011, the Apple iPhone (all models) will be eligible for coverage with the AT&T Mobile Insurance program (formerly Wireless Phone Insurance), the company said. Enrollment restrictions apply. Customers can only enroll within 30 days of a new activation or upgrade, prior activations or upgrades outside of 30 days are not eligible.

In 2010, AT&T had partnered with an external company to offer insurance coverage for iPhone at $11.99/month and $199 deductible.

AT&T Mobile Insurance plan carries a $4.99 a month premium and covers loss, theft, accidental damage and mechanical or electrical failure after the manufacturer's warranty period has expired.

Verizon Wireless, a rival to AT&T which began carrying the iPhone 4 in February, also offers insurance for the iPhone, though the handset's plan is more expensive than those of other devices. The company's Total Equipment Coverage for the iPhone costs $10.99 a month per device, with a $169 deductible for the 16GB model and $199 for the 32GB model.