[tim333]

I tend to avoid the insurance and just pile up the money I would have paid to cover the losses. Depending on the type of insurance. But theft insurance tends to be problematic. The fraudulent buy expensive stuff, keep all the receipts, sell the stuff for cash to a friend and then claim on insurance with the proper paperwork. Normal people tend not to keep and file away all paperwork and lose out.

[treflop]

Although it’s a little more complicated, generally if you can cover a loss out of pocket, then you don’t need insurance.

Insurance is for losses that will have a major impact on you. It’s putting a price on risk.

[wjnc]

Insurers do notice that small claims (in P&C) are a relatively small part of claims + cost so most don’t offer the high deductibles. As a bonus, with higher deductibles come relatively more lawsuits. So safer to only offer low deductibles. (My experience after 20 years in the sector.)

In my country a family perhaps pays about €5k total a year for two cars, health, house and the assortment of legal and liability insurance. That is quite modest (not for all income classes though), since there are catastrophes possible in nearly any avenue of life. A minimalist insurance scheme would save one about €2k/yr. That just isn’t that worthwhile utility wise.

[accrual]

Right. If I accidentally crash my vehicle into someone's property (or worse, someone) I don't want to be out of pocket for potentially 100s of thousands when I could just pay my sub-$100 premium and not worry about it.

[to11mtm]

> Normal people tend not to keep and file away all paperwork and lose out.

Interestingly some of 'valuable property' insurance I have used for my camera gear encourages you to submit your invoices, photos of the item, etc on your policy profile. Makes it easy to remember to toss a photo of the item, photo showing serial number area, close-up of it, invoice alongside the other info.