Confused about AppleCare

I have an Android. I want to get an iPhone.

I have questions about AppleCare+. I think that I know the answers to my questions. Apple offers 2 coverages - AppleCare+ & AppleCare+ with theft & loss. I'd want the phone to be completely covered against accidental damage, theft & loss. So, I'd get the AppleCare+ with theft & loss.

AppleCare is optional, right? Without AppleCare, a new phone is covered for the 1st year only against defects in manufacturing, correct? Accidents & theft & loss are not covered, right? If the phone is accidentally damaged during the 1st year, & one doesn't have AppleCare, the standard warranty doesn't cover damage, correct?

This is what confuses me. What happens if the phone is accidentally damaged during the 1st year? If one gets AppleCare at the time of purchase, the phone is covered for 24 months, correct? AppleCare cannot be renewed or extended beyond 2 years, right? Nowadays smartphones are expensive. What does one do for insurance on an iPhone after 2 years?