Argos, product breakdown ipod, question?

Are you in the UK, it sounds like it. The insurance companies are very keen to give a replacement item, not money or a voucher. The reason for this is that the insurance company can negotiate a deal with the supplier, and then when they pay for it they get the VAT back. They may want you to send the old unit to them for disposal or they may just want the serial number plate. It's accidental damage, be straight with them and they will usually be OK.