AT&T Mobile Protection Plan?

I'm now on my second iPhone 5 and it's only been a month, I always loose my phones or they get stolen. I'm looking to get insurance on it this time because I can't afford another iPhone 5. AppleCare just covers damage phones which is pointless because I already have Best Buy Geek Squad Protection. I need insurance if its lost or stolen. The AT&T rep I chatted with said "The insurance is $6.99 a month and there's a $199 deductible you would have to pay for each accepted insurance claim. You do have 30 days to add the insurance to the line from the purchase date.
The insurance will cover theft, loss, physical and liquid damage, and issues that can't be resolved after the warranty has expired"
What does this mean? Deductible? It'll take away 200 from the bill of the 650$ phone so I'll only pay 450? Or is it that I only have to pay 200? Please help me as I'm confused and need insurance As soon as possible on this phone.

It means that you will only pay $200 on the phone. No more. No less.

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