Why do i have to buy a new phone when my phone is under warranty?

Question

I Just called AT&T and they said that i have two options get insurance or but a new phone. Why would they make me because i bought a NEW phone and it has 365 day warranty on it in February 27, 2008. They said i dropped my phone in liquid because the indicator is red.

Answer 1

The same thing happened with my mother in law only through Tmobile.  The red does show that the phone was water damaged somehow.  They look at it as negligence on your part...  Warranties never cover what we actually need them too..  

Answer 2

water damage is not covered by warranty, it is covered by insurance!!!!

Answer 3

Because the phone is water damaged, and the warranty doesn't cover water damage. Simple.