Help with my iPhone 7? Under contract with Sky. Can I get a new phone with a contracted sim?

So I've had a contract with Sky for over a year now for my iPhone 7, but my phone has just broken in the last few days. The audio is completely broken - can't make or receive calls, can't hear YouTube, Spotify, alarms etc.

I rang Sky and they said I have to either pay the remaining 11 months of the contract in order to start a new contract, or pay a lot to get it fixed, where the phone will be away for 7-10 days, which I can't do due to university, etc.

So my question is, even though I got the phone and sim from Sky, can I simply just buy a new phone and put the Sky sim in it, and keep paying my monthly payments?

Yes you can.
However just buying a new phone with no sim will not be cheap

Yes. As long as the phone is either on Sky's network or is unlocked to all networks, youncan use your Sky SIM in it. If you need a different sized SIM then Sky will send you a new SIM (usually free) and you can then get your number transferred onto it. You might find that a phone locked to O2 will accept your Sky SIM as well as that's the network service provider to Sky Mobile.

Sky have no interest in what's happened to your phone and sadly it's now out of warranty. Your contract with them was effectively a loan in which what you borrowed was immediately spent on an iPhone 7, which became yours the moment you ageeed to the contract, and the loan has a phone service contract added to it.