Asurion Verizon Wireless Total Equipment Protection Bait and switch terminology regarding what an iPhone "is", Internet

We have had Asurion protection on our phones for several years and only recently had to file a couple of claims. This is what we thought we had it for... a phone gets damaged, file a claim, pay a deductible, get another phone of equal value to what we originally had. This had gone rather well until today when I started a claim on an iPhone 4 (8gb). When we got the service, we were advised that the iPhone carried the $99 deductible for smartphones and we are ok with that - they cost more. During the claim process, I was prompted to pay $169 deductible for that phone.

I rechecked my plan and it states smartphones are $99, tablets and special devices are $169 so I called them to make sure things were accurate. When I asked the lady who answered about this, she explained that an iPhone 4, with 8 gb of memory still had a retail value of $499 and that the deductible represented a "fair percentage" of the replacement retail value. I commented that for a little more than that, I could get a brand new 5 with twice the memory, and that even on Amazon the phone sells for a whopping $340 - but regardless of the numbers - the iPhone is sold as a "smartphone" and not a "tablet or special device".

She stated that we could either put the claim on hold, or complete the claim and that if I did not want to complete the claim or have any other questions, to have a nice day. I don't mind paying another $99 (plus $120/year) for a REFURBISHED phone to keep this going - but feel it is extremely deceptive to sell "smartphone" protection and rates, then use "tablet" replacement costs. If there were an iPad, no complaints.