For my phone, I use AppleCare+ because I work out of my house and my phone literally sits on my night stand or on my desk 90% of it's entire life. That doesn't mean I don't drop it (I have done that previously) but I also don't use a case so I like to have some kind of insurance with it.
To contrast, my wife uses a case for drop protection but also works at a university where there's a likelihood that her phone could get stolen. In fact, she did have her phone stolen once. Because of this difference, I get her a 1-year policy with Worth Avenue Group. This covers loss, theft, damage, etc. I called them and explained the last theft situation and they told me that if we had their coverage at the time, we would have been covered.
After 1 year of WAG coverage, we "self insure" with my old iPhone so if she loses/breaks her phone she has to revert to last year's model.
You have to figure out what is more likely to happen to YOU and what kind of turnaround you need. I need my phone for my job so Apple's advance replacement (usually overnight or within 1.5 days) is critical for me. My chances of having my phone stolen are not as great. Therefore, AC+ is best for me. My wife could have hers stolen OR broken and does not NEED her phone like I do (we always have a spare -- right now it's my old iPhone 5) so theft/loss coverage is a must, therefore WAG.
