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> Insurance is always more expensive than the expected expense without This depends on how likely you are to make a claim, no? I imagine some clumsy/unlucky pe
by jplrssn 1y ago
> Insurance is always more expensive than the expected expense without
This depends on how likely you are to make a claim, no? I imagine some clumsy/unlucky people get good value out of their Apple Care plans.
- andruby 1y agoInsurances have a "loss ratio" (premiums vs paid claims) that has different ranges depending on the type of insurance. > Gadget/Electronic Device Insurance typically operates with loss ratios between 30% and 60%. This means that 30–60 cents of every premium dollar are paid back out in claims. [0] In other words, on average people pay twice as much in premiums than they would have without insurance. So you'd need to be way more clumsy/unlucky than average to make it worth it. Of course, the peace of mind can be valuable too. [0] https://www.swissre.com/dam/jcr:dfcf4d4a-d6f6-424c-949f-794066470c8f/2023-09-sri-sigma-5-the-economics-of-digitalisation-2023.pdf https://www.swissre.com/dam/jcr:dfcf4d4a-d6f6-424c-949f-7940...