Another example; a while back I stepped on my thinkpad. Now, being a 200lb guy, the monitor cracked.
Will insurance cover "A fat man stepped on it?" If they do, they'd probably pay retail to replace it (lenovo wanted $700 to fix it, and that'd be factored into premiums.) I think I ended up paying $80 for a new LCD and spent two hours installing it. Probably less hassle than dealing with insurance would have been.
Insurance is best for risks that are beyond your capability to deal with... Usually for small things, it's cheaper, long term, to deal with it yourself. And unless you /enjoy/ bureaucracy, it's usually less work, too.