You're looking at Less Wrong's discussion board. This includes all posts, including those that haven't been promoted to the front page yet. For more information, see About Less Wrong.

Coacher comments on What makes buying insurance rational? - Less Wrong Discussion

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

You are viewing a comment permalink. View the original post to see all comments and the full post content.

Comments (21)

You are viewing a single comment's thread.

Comment author: Coacher 01 April 2016 10:47:18AM 4 points [-]

Buying insurance is rational for low chance, high cost (i.e. bigger than what you have in your bank account at the moment) risks. It is not rational for low cost risks, like loosing your phone, unless you tend to loose your phone more often than insurance companies accounts for.