Does AppleCare cover a cracked display?

Read http://www.apple.com/support/products/iphone.html

Hi

Accidental damage to the screen is not covered under the One Year Limited Warranty.

If you purchased AppleCare+, the screen can be repaired for a service fee / excess than is lower than the standard price for screen repairs (using one of the two available claims for incidents of accidental damage).

Contact Apple Support (mail-in service may be available), make a Genius Bar reservation or visit an Apple Authorised Service Provider to arrange for your iPhone to be inspected and to establish your available service options, timescale and cost:

• Contact - Official Apple Support
• https://twitter.com/applesupport
• http://www.apple.com/retail/geniusbar/
• https://locate.apple.com/

More information:

iPhone Service Pricing - Apple Support

AppleCare+: http://www.apple.com/support/products/iphone.html