It's all a bet. How much is at stake, what are the odds and what does
the money mean to me. $10 for a $400 camera, I would probably take the
insurance. $10 on a $100 camera I probably wouldn't. Is there a 1 in
10 chance of the camera breaking? I doubt it. Is there a 1 in 40
chance, I'm not sure so I might just buy the insurance.
Chris Guynn wrote:
> "DrYak" wrote in message
> news:CGdrc.34010$Md.22500@lakeread05...
>
>>Charlie,
>>Sorry, but it is all a bet. Look at the probabilities and the loss to
>>get the expected value or pay for insurance. And insurance companies
>>also invest your premium so they can lose all the premium and still show
>>a profit because of the investments. So I usually decline the
>>"insurance" at Best Buy because they want too much to insure my new toy
>>maybe $25 for something that costs $100. Now if they would insure it
>>for $5 I'd probably take the insurance.
>
>
> I recently purchased a $400 open box camera from Best Buy for $100 and had
> the camera insured for about $10. If it breaks, they'll probably give me a
> brand new one (comparable or better), so it was well worth the risk (I've
> actually thought about breaking it on purpose :->).
>
>
>>
>>
>>Charlie Hammond wrote:
>>
>>>In article ,
>>>"Skip Elliott Bowman" writes:
>>>
>>>
>>>
>>>>Hurricane season is June 1 through November 30, with most gales forming
>>>>mid-July through November. While this is no reason not to go or to
>
> cancel
>
>>>>existing plans, a prudent option would be to hedge your plans with
>>>>insurance.
>>>
>>> [emphasis added]
>>>
>>>
>>>> THERE ARE SEVERAL DIFFERENT POLICIES AVAILABLE AND ALL ARE A
>
> LOT
>
>>>>CHEAPER THAN HAVING TO LOSE YOUR $$ OR YOUR VACATION.
>>>
>>>
>>>I'm sorry to point out that this last is not correct.
>>>Casualty insurance alwasy cost more than it pays out.
>>>This is becasue it has to pay sales commissions and other business
>>>expences in addition to what it pays out. Insurance companies make
>
> money.
>
>>>Because of this, the general rule is NOT to insure any loss you can
>>>afford to sustain. Well, if you can't afford the cost of your vacation,
>>>then stay home.
>>>
>>>Also keep in mind that you will probably NOT loose all of your vacation
>>>money. Most resorts and airlines will (inspite of the original posters
>>>statements) make a full or partial refund under most conditions --
>>>certainly if a hurrican makes thier providing the contracted services
>>>impossible.
>>>
>>>My advice is to SAVE the money you would pay for trip insurance.
>>>Every few years you'll have saved enough to treat yourself to a
>>>better vacation -- maybe even a "free" one.
>>>
>>
>
>
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