Rolex warranty will cover the movement of the watch, and is really to do with issues in accuracy and/or imperfections that either occurred while being assembled or regulated, or if the watch loses accuracy over the course of the warranty period. Impact damage, shattered crystals, water damage, etc. are not covered by warranty.
That being said, the newer the watch, the more likely they are to make pricing considerations. For example, if you drop your watch on a tile floor and break the crystal it will need a new crystal, a servicing, and possibly a new dial or hands depending on how severe it is. This is not covered by warranty. If the watch is a month or two old and this happens, your $1200-2000 repair may come back as a $600-800 repair; with you paying for any replaced parts, but only a fraction of the service / labor. There's no guarantee, but they generally treat people fairly.
The only other possibility is if you find an AD willing to offer you an extended warranty on their own accord, they may help out; but I'd make sure that I knew all the details. If it's going to the Rolex service center and the AD is willing to foot part of the bill, awesome. If they offer to repair it in house at a reduced price, it comes down to how much trust you have in their watchmaker. If all is on the up and up, this could still be a good option.
Hope this helps.