Agree, the pricing isn't correct (accidental damage is $299 for macs across the board) and every time I've sent a device off for service they always tell me to either back up my data or wipe the device myself.
[0]: https://www.apple.com/support/products/mac/
[1]: https://support.apple.com/mac/repair (selected other damage - macbook pro - 14in 2021)