I'll say it again...
AppleCare IS NOT INSURANCE. NOT EVEN CLOSE.
AppleCare is simply an extended warranty and does NOT cover accidental damage.
For insurance purposes (dropping, bathing, breaking, etc), Verizon's costs $7.99 a month I think, and there is a $90 deductible. This means if you break your phone, you pay $90 to Verizon and they give you a refurbished one.
SquareTrade's insurance is $99 for one year, with $50 deductible. But they specifically fix YOUR phone. And if it's not fixable, then they give you a refurbished replacement.
The only difference that I'm aware of is that Verizon's insurance plan covers lost/stolen phones, while SquareTrade does not.
Hope that helps.