Quote:
Originally Posted by kck7
Some equations:
Warranty = Insurance
Insurance = Gambling
Gambling = The House Always Wins (in the long run)
The House Always Wins = You Lose!
Similarly, if you can afford a $60k car then surely you must have some $1-2K socked away that you can spend on brakes, tires or whatever. If you don't then you really shouldn't be buying such a car to begin with.
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You can't equate insurance to gambling. So, why insure your house, your car (other than be required to carry certain coverage), your homeowners's insurance, etc. It's for peace of mind. It's for the convenience of not having to shell out a lump some of money at one time if you don't have coverage and something happens. Obviously not everyone has claims hence why insurance companies are still around. Most people aren't going to sock away $2K for their "tire replacement fund" to be used 2 years from now--most likely other expenses come up that you will be use that money for.