Unfortunately that is pretty much it. You can purchase a used phone. I've done very well on eBay.
What do you mean continuing to pay for the phone? Are you on Edge? If so, and you don't have insurance then, yes, that's your option.
The key is get insurance. Depending where you are in contract it may be better to pat etf and sign new 2 year deal than to just outright buy a new phone. or get a used one on ebay like stated above