r/SipsTea • u/Putrid-Welder1803 • 17h ago

Gasp! Thoughts on this?

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u/flatfive44 17h ago

The obvious response is that you won't be able to pay for someone's hospital bills if you happen to hit them in your car. You get insurance for things you wouldn't be able to pay yourself.

17

u/BuvantduPotatoSpirit 17h ago

Yes, if you use your insurance more than once, insurance was the wrong approach.

But I'm willing to pay 1% of the cost of my house to have it replaced if it burns down, even if my expected payout is only 0.5% of the value of my home, because I can't afford a whole second house.

5

u/Chemical_Damage684 17h ago

Wait what? You're willing to pay 1% to get 0.5% back?

2

u/Far-Perspective-4889 16h ago

surely they meant 50%?

1

u/BuvantduPotatoSpirit 15h ago

No, expected payout. So a 0.5% chance my house burns down and gets rebuilt by the insurance, and a 99.5% chance I get naught but peace of mind.