Re: Ayup, and Road Hazard Warranties too - Saab General Bulletin Board - Saabnet.com
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Re: Ayup, and Road Hazard Warranties too
Posted by rico 567 [Email] (more from rico 567) on Fri, 24 Feb 2012 08:50:37
In Reply to: Ayup, and Road Hazard Warranties too, nwas, Fri, 24 Feb 2012 07:58:51
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Insurance is a business. Judging by the number of expensive TV ads they buy, a very lucrative business. As someone mentioned previously, buying insurance is you betting against their actuaries that you'll make out. How many of us feel comfortable with the idea of arguing against a lawyer in a courtroom, or out-diagnosing a doctor? And yet we are willing to bet against the actuaries on this. (For those who may be unclear about what actuaries do, they are statisticians who generate numbers that the insurance companies use to calculate their premiums. I am not an actuary, but I know a couple who are both actuaries, and who opened my eyes to the nuts and bolts of the insurance business.)
We probably need insurance against the improbable but catastrophic (car, house, health), but we are effectively falling for a scam when we buy insurance on a set of tires or a waffle iron.
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