Quote:
Originally Posted by Alpha Fish
he already saved more than the price of the car by not carrying comp for the last 10 years
+1
The point of insurance is to lower variance, not to save money.
Insurance is necessarily EV- as the insurance company is a for-profit corporation. Their whole business model is to pay out less than they receive in premiums.
It's win-win when the consumer would rather pay a small fixed amount regularly instead of a huge amount at a random time. If you have a 1/1,000,000 chance per day of causing a $1,000,000 accident, you'd rather pay $1.50/day, unless you're so rich you can absorb the $1,000,000 penalty that could hit any day.
It's win-lose when the consumer uses it as a forced savings program for small matters. Like if there's a 1/100 chance per day of causing a $100 accident, paying $1.50/day is super lol unless $100 will bankrupt you.
For a $1,500 car and assets commensurate with someone driving a $1,500 car, anything but the skimpiest coverage allowable by law is overkill.