Thats BS. While it may be the case with water damage, if everything working after a drop / crush, everything will work later. These are SSD devices, and unless something in the phone physically breaks, there should be no internal damage.
Not idea on this phone, but I just today replaced the glass digitizer on my OG Droid myself. It was a PITA towards the end witht he ribbon cables, but I only spent $40 for the glass and tools. You might want to look up how to do it to your phone if your technically inclined. Anyone who's built models as a kid and has steady hands should have the steady hand skills to do it.
Insurance other then renters / homeowners / bought off the net insurance is a scam.
Point being if you had Asurion, and paid them $6 / month, that's $72. Pretty much the same cost to have someone else fix the phone. Over 2 years that $140, which will easily buy you a used replacement that's probably better then their crap, no warranty refurbs.
So don't sweat the no insurance thing.