Ask HN: How do you decide if you buy insurance on goods?

https://news.ycombinator.com/item?id=673288

by scscsc • 17 years ago

4 3 17 years ago

news.ycombinator.com

I'm curious to find out what the 'best' algorithm is for deciding if you buy or not additional insurance. For example, when buying computers/displays, do you get premium insurance? What about rental cars? What about cars?

noonespecial• 17 years ago

Agent: Alright. We have a blue Ford Escort for you Mr. Seinfeld. Would you like insurance?

Seinfeld: Yeah, you better give me the insurance, because I am gonna beat the hell out of this car.

cjg• 17 years ago

Generally you should only buy insurance if you would not be happy insuring yourself (e.g. buying a new one when it breaks). I fyou buy insurance then the profit margin and overheads of the insurance company are an extra cost over insuring yourself.

Buying insurance works best for expensive rare occurances (e.g. major car crashes) and not so well for cheaper, or more common problems (e.g. broken consumer electricals).

This is especially true with product insurance on products with a short shelf life (e.g. the latest iPhone) as their value drops quickly and better versions are introduced.

elcron• 17 years ago

Just put the cost of insurance in a bank account for cheap common problems. Not only do you not have to pay the overhead, but the bank pays you interest. :) It should (but won't necessarily) average out.

Ask HN: How do you decide if you buy insurance on goods?

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