Insurance is a fixed cost to protect against *catastrophic* loss
If you pay $100/month for car insurance you could save it and pay for your car if something bad happened, but you would be able to pay the $200k you’d be liable for if you caused an accident that sent multiple people to the hospital
Similarly home insurance protects you against the relatively low risk that your house may burn down, but if it does and you’re not insured then you’re homeless *and broke*
Insurance is there to cover low percentage events that *you cannot feasibly save for*
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