| > The point of insurance is to amortise risk. I don't think so. Insurance doesn't amortize risk for the individual (though it amortizes risk for the pool). Say you have a 1 in 1.000 years of your house getting destroyed in an earthquake; this means you most likely will never get a payout in a 50-60 years period. If you pay 1 in 500 odds (the insurance makes money), you can never amortize this risk over your lifetime. However, such an event might be too catastrophic for you to bear, so you go with the insurance. I mean, some people are going to go through earthquakes/fires every year. So for society, as a whole, you are better off being insured. > In the case here for apple care, I'm not sure. What apple charges for repairs almost definitely has markup, so it's possible that they can provide insurance that averages out below the expected "cost" of repairs but still makes apple money. So maybe it is actually a win-win. Definitely makes sense to add it all up and see if you're getting value for money. That's Apple care for you. It certainly doesn't cost the markup that Apple's is asking for. But for people who are too deep into Apple, it provides them into a window of staying Apple compliant. People who do not care about Apple Care might be the one who needs it the most, but Apple might know that which is why they put a price on it. (this is solely my assumption). |