The Moto G is insanely well priced. Here in the UK you can get it for £129.95. This is a phone running 4.3 (with 4.4 confirmed in January) with a quad-core chuip and a 720p screen. For comparison, Apple still want over £300 off contract for a 3.5 year old iPhone 4 which has a single-core chip and a low resolution non-HD screen.
I predict the Moto G will be a hit.
Preach, I'm not sure if it's different in your country but over here (and in the US) - the warranty and the insurance are two separate things that don't affect each other. The manufacturer warranty is for faults that develop on their own. Say the speaker blows, or a dead pixel appears on the screen, etc. Essentially, something that isn't your fault.
Phone insurance is optional on top of that and covers accidental damage, theft, loss. A cracked screen counts as accidental damage. I don't understand why your phone insurance requires a valid manufacturers warranty. That's not the case over here.