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[quote=Anonymous]The main thing to keep in mind with insurance is that it would not be a viable business model if it had a net positive expected value to to consumer. Insurance companies make their money only by paying out less than they take from you, on average.

Knowing you will always lose money on average, the only time insurance makes sense is if you are insuring something that you:

1) Can't possibly do without

and

2) Can't possibly afford without the insurance payout

Health insurance? No brainer, virtually nobody can afford open heart surgery and if you need it you literally can't live without it. Yes, on average you will pay more in your lifetime in premiums than you get back but you're trading amounts you can afford monthly for the potential of them paying for a necessary expense that you couldn't possibly afford all at once.

Sewer line insurance? It's usually "only" like $10-15K max to replace. Not a fun bill to pay but a bill many people can manage, and if you can manage you're (on average) going to be better off self-insuring.     [/quote]

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