3 ms·

Insurance (outside of health insurance, which is not insurance in the typical sense) hedges your "bet" so it's not gambling to me. Your bet is that you'll drive

Insurance (outside of health insurance, which is not insurance in the typical sense) hedges your "bet" so it's not gambling to me. Your bet is that you'll drive a car without an accident. Insurance hedges that bet to reduce downside risk if there is an accident. You're paying a small amount to avoid a large loss, on purpose, knowing that it may not happen. You're not trying to get more out of it than you put in (at least on purpose) because that's fraud. Doesn't sound like a bet to me...

BugsJustFindMe 2y ago
> Your bet is that you'll drive a car without an accident. That's the ideal outcome, but it is not the bet being made by the person buying insurance. In fact the opposite. If you believed that you wouldn't have an accident you would not buy insurance. You buy insurance because you believe that you will likely have an accident at some point and that the accident will happen either soon enough or seriously enough that the cost of covering the accident will be greater than the total cost of insurance up to that point.