parabarbarian comments on What makes buying insurance rational? - Less Wrong

3 Post author: rayalez 31 March 2016 08:50PM

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Comment author: parabarbarian 03 April 2016 03:11:09PM 2 points [-]

That might depend the the kind of insurance. For example, here in California, I am required by law to have personal liability and property damage coverage on my cars. If I take out a loan for a car, the lender will require I have collision and theft as well. So, if I decide I want to drive on public streets, buying insurance -- rational or not -- becomes a part of the cost of owning and operating a vehicle.

Comment author: jkaufman 04 April 2016 12:01:13PM 1 point [-]
Comment author: parabarbarian 04 April 2016 01:08:17PM 1 point [-]

True but the bond acts as a proxy for an insurance policy.