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?

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Answer 1

One factor that a lot of these answers don’t include is that, in many cases, insurance in MANDATORY. Most jurisdictions won’t allow you to operate a motor vehicle without liability insurance, because youv shouldn’t be able to drive your car into someone else’s car and not afford to pay for the damages.

Many rental agreements require tenant’s insurance. Medical professionals generally need proof of professional liability insurance before they can be resistance to practice.