>> if an insurer evaluates your true risk and offers a policy, it's not worth it
> This is kind of a silly argument.
No, that is a silly argument, because it doesn't offer an explanation. Consider those electronic service plans that retailers are always trying to get you to buy. They's not worth it. How do I know? Because the retailer wants to sell it to me. Therefore he must come out ahead in the transaction. Therefore it's not in my interest -- I would be better off paying for a repair myself, or replacing the item. How difficult is that?
It's the same with insurance. If you cannot afford to lose the insured item, by all means insure it. For every other case, think a little harder and you may realize there's a reason the insurance company is so eager to sell you a policy.
> This is kind of a silly argument.
No, that is a silly argument, because it doesn't offer an explanation. Consider those electronic service plans that retailers are always trying to get you to buy. They's not worth it. How do I know? Because the retailer wants to sell it to me. Therefore he must come out ahead in the transaction. Therefore it's not in my interest -- I would be better off paying for a repair myself, or replacing the item. How difficult is that?
It's the same with insurance. If you cannot afford to lose the insured item, by all means insure it. For every other case, think a little harder and you may realize there's a reason the insurance company is so eager to sell you a policy.