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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In a lot of countries insurance is mandatory for some things like driving or offering a professional service. That’s more to protect the people who might be affected by your mistake or negligence than it is for your own benefit.
You might have the money to take care of a situation if it arises but what if you don’t? The person who you crashed into or whose home you damaged doesn’t know if you have the money to put things right or not. So it’s a more fair system to mandate that people have insurance.
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