Larry dropped his iPhone 7 Plus and now the screen is completely shattered. He has since found out that Apple doesn't use Gorilla Glass to protect the screen. Leo says he doesn't believe that. More likely, Apple doesn't want to boast that they use Gorilla Glass. Even then, it's not indestructible. The harder a material is, the easier it is to shatter when it lands just right. That's why Apple was looking at Sapphire screens, but they are very expensive to make.
Larry isn't thrilled that his deductible is $225, even though he pays a monthly premium. Leo says that the idea behind insurance is to either get a huge premium from you, or a deductible, or deny you coverage. Larry could go to a third party and have it replaced, but his Touch ID will stop working and he'll likely void his warranty. And parts are hard to find. That's why Leo self insures.
Larry can try throwing himself on the mercy of the Apple Genius, but that doesn't always work.