All Customers and Potential Customers Please read for your own good.

When I first purchased my phone it was persuasively suggested by the salesperson to purchase both insurance and the warranty for my phones so that I do not end up with an insane bill or paying for service with no phone. So, when my daughters phone would not turn on I called AT&T to let them know they then said since I had a warranty and insurance  I could use either one. The customer phone agent said it was best to use my warranty since it would not require any deductible as long as their was no physical damage to the phone. So I look at the screen holding it out in front of me and the back and did not notice any damage to the phone so I decided to use my warranty. A week later I then receive a note in the mail saying that if there is any damage to the phone I would have to pay a $550 device fee. I chalked it up to a standard warning seemingly because I saw no physical damage on the phone I sent back through my warranty. Another week later I  recieve a box in the mail with  a phone and a note saying they were going to  charge me the $550 device fee for a damage phone.  
Once you turn the phone toward the side you can see a noticable scratch on the front screen that I did not notice before. I then called AT&T asking can I just send the new phone they sent me through my warranty back so that I do not acquire any $550 fee because I do not have the means to pay such a large bill and I was told yes she then told me to go ahead a use my insurance so that I will not have to pay a bill for a line with no device but I will just need to pay my deductible.  The customer agent email a packing slip in which I printed and put on the box and immediately sent it back in which they acknowledged reciept of the device the first week of July.  That same day I put in an insurance claim recieved my new phone a week later and sent the broken one back  through the insurance in which they acknowledge reciept on the 31st of July.  However, with all of that I am setting here with a $1000 bill because the device and AT&T's mixup and my account nearing shutoff of service. I called AT&T and they tell me to call the insurance. I call the insurance and they tell me to call AT&T. Both giving me the run around everytime I call.  This to me is bad business practices and decieving. Why sale me insurance and warranty if you are still going to stick me with a unaffordable bill ? This is very upsetting because I use this phone for business. As soon as I get this cleared up I will be leaving AT&T because of their deceptive business practices.  This can happen to anyone and let this be a warning to all potential customers to read and Stay away.