deeply agree. it isn't even that well priced. just self-insure if you're worried. put $12 away into a separate account or something. you'll probably end up with extra money.
Remember, insurance companies are for-profit. You are likely not the one benefitting from this arrangement
Insurance companies also get parts wholesale and keep large stocks of referbished devices. Not saying they don't profit, but the margins aren't there because the pay in outweighs the risk, they're there because they have effective supply chains and manufacture direct deals to procure hardware at costs not offered to the general public.
That has some impact, sure, but insurance agencies generally profit by the assumption that not everybody will make a claim. Those that don't make a claim pay for those that do and they pocket the leftovers
When I worked a more active job, I used them religiously. I thoroughly tested OtterBox's warranty.
Now that I work a desk job, I'm much less worried about breaking my phones. I put a skin on them for the aesthetics and improved grip. Over 4 years case-free on 4 phones, zero issues.
Never had a case for my phone. And in 13 years of owning a smart phone, I only had a single broken screen this summer. And in that case, a phone case wouldn't have helped protect it.
It's really not hard to not drop it is you're careful.