Thank you for reaching out to us. We certainly want to make sure that your concerns are addressed. A data overage is applied when you go over your plan data. If you are on the 16GB plan and you have used 17GB, you are then charged an overage fee for the 1GB that you went over.
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"Storage" is not "usage". "Usage" is data being sent to/from your phone from Verizon's servers. "Storage" is simply files taking up space on your phone or cloud(which I assume you mean with your 5 GB comment).
If you send a photo to be backed up to the cloud, the data used to send that photo would be counted against your "usage" and as long as the photo is stored in the cloud, it would also be counted against your "storage". If you decide you no longer want that photo and delete it from your cloud storage, your cloud storage would increase by the amount of space you cleared out. That wouldn't mean you didn't actually send it to the cloud in the first place and the data you "used" to send it would STILL count against your "usage".
For example, if you are watching a movie on your phone and streaming it via cellular data, you are not "storing" that movie, simply watching it. After you are finished watching it, you would not have impacted any "storage" space you may have, but you would have "used" anywhere from 0.5 GB to 2 GB depending on the resolution your phone chose to stream that movie at.