I think the point is that the premium is part of your belongings, and the probability is that the premium over the period you have insurance is more than the am

I think the point is that the premium is part of your belongings, and the probability is that the premium over the period you have insurance is more than the amount of any claims you'll get reimbursed from the insurance. You're therefore better off paying those premiums to yourself until you've built up a large enough fund to replace whatever you wanted to insure. Now you're self-insured in-perpetuity, with no further costs. The risk is that you're going to have an accident before you've built up that fund. Insurance helps there, but they're going to jack up your premium rates and make you pay for the claim. In essence they're giving you a high-interest loan to pay for your accident, except the loan payments never stop. If you've got credit, an actual loan is probably better than the insurance for this situation.