Pretty surprising discussion this.
Perhaps I'm missing something here. This really isn't a difficult situation.
dumbtechie, buying an item, breaking it and then buying an insurance plan so that the insurer can bear the responsibility to pay for the repair is both dishonest and fraudulent.
If your argument is that the vendor should have offered it and you would have bought it, then you really should take that up with the vendor, not lay the cost on the insurance company. If you think that the idea that you would have bought so you should be able to buy it now is reasonable - well no it's not. You can't be serious.
Having said that, if you paid for the reader with a credit card, then the card issuer - Visa/Mastercard etc might provide accidental damage cover anyway - you should check with them.
Also, if you have home or renters insurance that may also cover the damage.
Finally, the $99 repair quote from Sony doesn't seem all that unreasonable. A bit better than resorting to a life of crime
Best of luck.