Why do people pay for insurance? If they have the money to ensure protection in the case of damage or loss that isn’t guaranteed, why not save the money for when something actually happens?

Question

Why do people pay for insurance? If they have the money to ensure protection in the case of damage or loss that isn’t guaranteed, why not save the money for when something actually happens?

In: 0

Answer 1

When something happens it can require more money than one can save.
The insurance can average out the bad luck throught the population.