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Disagree. I take the view that you should only insure against risks that would be significant hardships if they occurred. (Maybe a secondary exception if insurance buys you significant peace of mind.)

At this point, I don’t carry collision insurance on our cars (I have liability, of course, but not insurance to pay if we wreck and fault is ours or undetermined.) Why not? Because buying a replacement car wouldn’t be a significant hardship that would be alleviated by the insurance coverage. (Our cars are 2005 and 2015.)



Wouldn’t that mean that the premium on that insurance is also practically zero?

If something you have insurance for wouldn’t be a hardship if it occurred, then the premium should be a rounding error.

To be fair, I guess it could be more annoying to go through the whole insurance process, so I guess I sort of understand what you mean.




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