Id love to try and help, but i think i got a bit lost on what happened. A couple of things however, i wouldnt advise cancelling your dirct debit with your bank. This will seriously effect your credit score and you will be unable to get loans or a morgage . Secondly vodafone will sell your debt to a collection agency and they will hassle you for money and may take you to court. On to insurance, this is where i lost you a bit, the cover that phones 4 u offer , does cover water damage, if it got sent off to the repair centre and they told you it was water damage, all you would have had to do is phone P.A.S. and they would have arranged a replacement phone ( with a £50 excess ). If you cancelled the policy, your out of luck with that. Here's where it can get confusing, at the begining of your contract, you may have recieved a phone call from some one claiming to be your insurance company offering it to you for cheaper. These are fraudsters, they may even claim to be vodafone or thge p4u insurance company, they arnt. They may tell you to cancel your original policy and sting your for £80 and then you will never hear from them again. ( who'd they get your number? its to do with the way vodafone numerically produce numbers in sequence ). As far as not having a phone when its sent off for repair, im affraid thats correct in the way that is, you see the contract is with your sim card, not with the phone. The phone is mearly a tool given to you as incentive for the contract, but its the actual sim you have the contact with. On to Pay as you go, thats ok for low users, but call chagres are more expensive than on contract, so if your a high user then it pays to go onto contract. In the futre if your saving focused try a sim only deal, there is no term of contract and very good value. The one thing i would say where you may have got mis lead by both voda and p4u, is when they offered you a second contract and ' buy ' you out off the original. It can be done , but it can be quite confusing for customers, and 9 months is quite a long time to do that with. I woulldnt offer a complete buy out for any more than 6 months, any longer than that iand id make sure the customer realises , they would have to pay some towards the cost of it ( some people are willing to however), addtionally, vodafone might still try to upgrade your original phone as they may not be aware your have had a second line. be carefull agreeing stuff over the phone. One last genral tip, if any network phones you and offers you some credit back ( normally around £25 ) say know, they will lock you into a further 6 months of your contract i.e. an 18 month would then become a 24 month. If you need any more help let me know