Originally Posted by
amazinmets73
"Essentially, the point of insurance is to spread the risk (cost of a loss) across a population. That is, everybody is bearing the cost of small insurance payments to avoid a small risk of a large loss."
Seriously, do you guys read any of my responses? I fully understand this and have already addressed it, as evidenced by my prior statement, which I will reiterate verbatim:
"Respondents, I am not saying we as a society shouldn't utilize insurance. It's probably better if everyone has slightly less money as opposed to most people having slightly more and a not insignificant percentage having their lives devastated."
"That service isn't going to be free."
Well, obviously.
You don't understand it, even though it has repeatedly (and in different terms) been explained to you.
Financially, insurance does NOT leave "everyone" with "slightly less money." This statement that you keep repeating is just plain wrong. Incorrect. False.
Insurance provides benefits NOT JUST to claims recipients, but to ALL PEOPLE WHO PURCHASE IT. That is WHY they purchase it. The fact that you can't recognize it DOES NOT change the logic or reality.
I'm guessing that this lost bike (which could've been insured - d'oh!) might be the most valuable thing you own, in which case it may be an iota more difficult for you to understand why others might willingly insure their $50K cars and $500K houses. But it's really not that hard to understand. At least it's not for most people.