Coacher comments on What makes buying insurance rational? - Less Wrong Discussion
You are viewing a comment permalink. View the original post to see all comments and the full post content.
You are viewing a comment permalink. View the original post to see all comments and the full post content.
Comments (21)
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.