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by NorwegianDude 1403 days ago
Insurance is never a good idea in general, except if you can't risk paying for it yourself.
1 comments

Which is nonsense, the whole point of insurance (and why most people should purchase insurance) is to pool risk so to cover high costs that most can’t afford for themselves.
GP is saying that insurance makes sense for things too expensive to replace on your own, like houses and cars, but not cheaper things like consumer electronics.
Consumer electronics in the thousands of dollars I would definitely want insurance for.
You and NorwegianDude wrote the same thing.

>can't risk paying for it yourself.

is intended to mean

>can’t afford for themselves.

“Insurance is never a good idea in general” is a bit too extreme. Not all hedges have to be about protecting you from a wipeout. It’s about opportunity cost for the premium vs the risk (magnitude x probability).
But if that tradeoff were favorable to you, wouldn't that mean it's unprofitable to the company selling it, so they wouldn't?