It's bordering on insurance fraud and I usually trade-in my devices back to Apple so I don't bother with it; but there's probably at least one case where both you and Apple come out ahead financially.

AC+ includes what they call "Express Replacement Service", where you will send you an entirely new device as part of your claim, and they'll reuse your old one for parts.

If you _just happen_ to accidentally fall with your phone in hand right after the new ones come out, the delta in price between "a scuffed up, used 1-year old phone" and "brand new refurbished device from Apple" is higher than the price of the insurance and incidental damage fees.