Buying insurance is rational for low chance, high cost (i.e. bigger than what you have in your bank account at the moment) risks. It is not rational for low cost risks, like loosing your phone, unless you tend to loose your phone more often than insurance companies accounts for.
Buying insurance is rational for low chance, high cost (i.e. bigger than what you have in your bank account at the moment) risks. It is not rational for low cost risks, like loosing your phone, unless you tend to loose your phone more often than insurance companies accounts for.