Are expensive guitars better? If so which should I buy?

I have a Dean Playmate Evo J and it's worth $90 to $100 new. I've had it for two years and I've been playing guitar for three years. I've improved a lot and now I'm wondering if I should get a new guitar, particularly one that is more expensive. I suppose it's because I've had the pickups fall in twice (granted I dropped the guitar more than once) and now some screws from the input jack have fallen off, and I'm thinking that maybe more money is going to mean better quality...am I right?

Also please sudgest what guitar you guys think I should buy to maximize quality and not spend too much money.

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