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Based on all these "rational actor" responses, I take it none of you purchase insurance?
by rkosai 16y ago
Based on all these "rational actor" responses, I take it none of you purchase insurance?
- joshu 16y agoI certainly don't on things I can easily afford to replace.
- moron4hire 16y agoI have car insurance because it is legal mandated. I don't have health or life insurance.
- gojomo 16y agoOnly when it's legally/contractually required (car/financed-house), or comes with negotiated discounts (health), or handles a catastrophic/risk-of-ruin situation (chronic disease/business liability). Insuring against small losses is a net financial loser, or else the insurance company wouldn't offer it.
- anamax 16y agoActual rational actors understand that extreme loss has a disproportionate effect. (In other words, losing $100k is more than 1k as expensive as losing $100 for most of us.) Naive rationality may be easy to analyse but that just means that the GIGO transfer doesn't cost much.