The post didn’t cover an essential part where insurance makes sense: I.e. when you believe you know the odds of the adverse event happening is much higher than what the actuaries estimate (either because the actuaries are wrong or don’t care or have a bigger model than that particular insurance, or because you know something about yourself that they don’t). For example phone insurance, a friend always buys it because she knows she’s butterfingers and she has also used them. Another is stuff like applecare. I don’t buy it for most products but I did buy it for my AirPods Pro, because I believed apple would have made it not that well. Further, apples warranty policy in india is weird where they’re more liberal in replacements as long as you have a care plan. So I took the care plan and am happy about it.
Another place is where you really just don’t care about the marginal extra cost for the peace of mind you get, which I believe is what most people consider when taking the majority of the insurance especially stuff like rental cars.
Another place is where you really just don’t care about the marginal extra cost for the peace of mind you get, which I believe is what most people consider when taking the majority of the insurance especially stuff like rental cars.