Go to the Apple store first
I dropped mine last week, while getting out of the car. The phone fell face downwards on asphalt. Some pretty cracks running across the glass.
Made an appointment with the local Apple store. They asked me what happened, checked for water damage (there was none), told me that it costs a lot to get it repaired, and then proceeded to replace it at no cost to me. Let's say I was very-very surprised, and happy.
Don't really know why Apple was generous. Also, they replaced it with a new phone (in a white box). They don't have any white, 16 GB remanufactured phones to give out as of yet.
Long story short, visit a local Apple store and talk to them.
Good luck. I feel your pain.