You're missing the point and attacking a strawman to boot. Nobody suggested you take out a warranty on things you can probably live without, like a toaster, iPo

You're missing the point and attacking a strawman to boot. Nobody suggested you take out a warranty on things you can probably live without, like a toaster, iPod or TiVo. Other things like a washing machine, you might do, because losing access to it incurs extra costs: taking things to the laundrette, travel to friends, etc. (if you're in a rural area I hope you know people there). This is especially the case if it's work-related equipment. In the case of something that is too expensive to replace without insurance, you just decided that the cost of insurance is greater than the opportunity cost of using a cheaper/inferior good over the time period covered by the insurance. Do you really think that's true in all circumstances? What you should not do is look at insurance narrow-mindedly and declare it a great big scam because the mathematics works in their favour. Well, no shit. They are paid to remove risk, they can't do that if it's an unsustainable business. If you can operate on the same business model as them and make an amortised net profit, do that - but don't assume everyone else can.