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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it boils down to risk management.
You don’t know when something unexpected(ly bad) will happen, and you don’t know how bad it’s gonna be when it eventually happens.
so without insurance, you’re in a awkward situation where you can’t know if what you’ve saved is enough for a potential eventuality, and even if it is, there’s nothing stopping 2(or 3 or 10) bad things happening in short succession before you can save enough money to deal with the second.
insurance is worth it because instead of constantly worrying about a random event you can’t predict or control, you can pay a constant and predictable rate, which is obviously more consistent and thus can be planned around.
consistency is king, in all forms of business pretty much.
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