FLandOBX wrote: ↑Mon Nov 11, 2019 2:37 pmI agree with this approach.slowboat wrote: ↑Mon Nov 11, 2019 11:31 amThe purpose of insurance is not to come out ahead dollar wise. It is to protect against life changing losses. You actually WANT to lose money on insurance. Meaning, you have insurance on your car (for liability mostly), house or life but don't want to claim house, car or life insurance...so you pay the premiums but are happy to not use the insurance. It is a way of spreading catastrophic risk among many people.
If you damage rental equipment (or lose your phone for example), that is just the cost of kiting and you lose the money. Insuring these "little" things to try and come out ahead does not make any sense as the odds are the insurance company will come out ahead...they have to make a profit to exist.
The other aspect of insurance that most people fail to recognize is that the "cost" of insurance is more than just the premium. The "cost" includes both the premium AND your time, energy and expense required to make the insurance company honor its contract in the event of a loss. Often, it's more cost effective simply to pay for a loss out of pocket than to haggle and battle with an insurance company to settle a claim.
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