

Ask HN: How do you decide if you buy insurance on goods? - scscsc

I'm curious to find out what the 'best' algorithm is for deciding if you buy or not additional insurance.  For example, when buying computers/displays, do you get premium insurance?  What about rental cars?  What about cars?
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cjg
Generally you should only buy insurance if you would not be happy insuring
yourself (e.g. buying a new one when it breaks). I fyou buy insurance then the
profit margin and overheads of the insurance company are an extra cost over
insuring yourself.

Buying insurance works best for expensive rare occurances (e.g. major car
crashes) and not so well for cheaper, or more common problems (e.g. broken
consumer electricals).

This is especially true with product insurance on products with a short shelf
life (e.g. the latest iPhone) as their value drops quickly and better versions
are introduced.

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elcron
Just put the cost of insurance in a bank account for cheap common problems.
Not only do you not have to pay the overhead, but the bank pays you interest.
:) It should (but won't necessarily) average out.

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noonespecial
Agent: Alright. We have a blue Ford Escort for you Mr. Seinfeld. Would you
like insurance?

Seinfeld: Yeah, you better give me the insurance, because I am gonna beat the
hell out of this car.

