Given iPhones rarely have hardware issues, I wouldn't consider AppleCare for that reason alone. Every single iPhone I have owned has never suffered any hardware related issues, except for a random haptic engine issue, which Apple happily rectified out of warranty. If a hardware issue persists, Apple has been known to address concerns out of warranty assuming it's not due to negligence and who handles your case. But every situation will vary.
As for accidents, never experienced issues here with any of my Apple devices. But I as mentioned prior, I have been fortunate due to how treat my property with respect. But I fully understand accidents can and will happen, but AppleCare does present its advantages. I just choose to take options and opt out.