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Get O2 PAYG sim card. Put £20 on it. Make a chargeable with new sim card. Go online and IM advisor or go through the unlocking form. They will charge you £15 to do this, hence the £20 of credit.
Done this early this year and it was done within 24 hours. From getting sim card to unlock.
Wont insurance go up next year. Happened with my parents a few years back. Dependant on how much I can't really see the point in going through insurance.
OBV if it's a 64gb Retina then it'll be worth it.