[cascom]

To simplify when purchasing insurance typically the first question is:

1) would this be a loss I could afford to bear, if not most people insure and stop there (Home insurance, health insurance, Auto (liability), etc.)

2. If it’s a risk they can afford to self insure than the question becomes “does my view on expected losses differ from that of the insurer?” (E.g. I’ll definitely break an iPhone screen in the next two years so AppleCare pays for itself)

Side note: I think the real genius of AppleCare is that it’s priced extremely attractively and creates a great customer experience, but due to the sticker price of repairs, the math shifts to, replace vs repair when out of warranty…