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The point with auto insurance (and why you'd use it rather than just putting the equivalent of your premium in a savings account) is that they win the bet most
by Macha 3y ago
The point with auto insurance (and why you'd use it rather than just putting the equivalent of your premium in a savings account) is that they win the bet most of the time, which means they can afford outlier events which your saving approach alone wouldn't cover.
This is different to the claim here AppleCare is profitable on every unit even if they do pay out.
- gruez 3y ago>This is different to the claim here AppleCare is profitable on every unit even if they do pay out. It's clearly worth it if you have butterfingers and manage to break it twice.
- moogly 3y agoBut only exactly twice. Not once. Not thrice.
- gruez 3y ago1. You save $501 when you break it twice, but you still save $501 when you break it 3, 4, or 5 times. You don't get any additional benefits for the additional breaks, but you're still ahead overall. 2. all of the above analysis only covers glass breakage. More costly breakages also changes the equation.
- deleted 3y ago[deleted]