Originally Posted by
Dan Burkhart
That fits with my view of the purpose of insurance. I look at it as a means to avoid financial ruin, not to save me from every eventuality.
Indeed. For me it's just a numbers play. The insurance companies make money by charging a premium that's greater than the expected risk, and having enough of a cash cushion to cover a reasonable number of claims at any given time. Thus, if I have enough of a cash cushion to cover minor losses, then I can afford to be self insured.