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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One simple example would be that it’s fixed costs.
I can plan for a 50€ reduction in monthly spending, I can’t plan for a 3000€ bill suddenly because something stupid happened.
Additionally to that, remember that an accident can cost a LOT of money. Imagine I hit another car, that’d be more than a thousand, multiple. I don’t want to plan for a “what if” scenario. Heck, if a person is damaged it can go up into the millions. I’m not going to be able to pay that amount of money.
That’s where the insurance comes into play.
One would have to check if it’s likely, and how impactful an accident would be. Would I get an insurance for a mobile phone? Nah, I barely have any issues with them.
Car? Absolutely, even if the chance is low, the damages can ruin me, as opposed to a phone cracking it’s screen.
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