[peternilson]

My opinion is that insurance is vastly misunderstood, just as gambling is vastly misunderstood. In insurance, it's the low premiums on high valued assets that obscure peoples thinking and in gambling it's often small wagers offered in return for potentially large payoffs. I know of people who could afford to replace a phone if it was stolen, but still take insurance on it because the small premium on the insurance seems like a good deal. There is just no way that these type of insurance contracts have a positive expected value to the individual. However, if you're a single Mom making ends meet, who needs to drop her kids at school every morning, please insure your car. The utility of losing the car and not being able to get to work etc. is just too negative.