i7 Screen Warranty
Hi, Is screen damage covered under warranty whilst the phone is covered by Apple Care?
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When you say AppleCare, if you mean the standard AppleCare one year warranty which came standard with the phone, no, screen damage is not covered.
If you mean the additional AppleCare+ plan you can buy monthly or pay up front for two years of coverage, screen damage is covered, but it's not free. It's just a reduced price as part of the AppleCare+ plan.
See this link about screen repair with US pricing --> iPhone Screen Repair & Replacement - Official Apple Support
As you can see with standard AppleCare, you'll pay the Out of Warranty price. With AppleCare+ the price is significantly less.