Yes, insurance for your own car’s value is usually not great—it’s bounded and in most cases cars are relatively easily replaceable with something functionally almost as good for relatively low capital expense.
Insurance for liability to third parties is worthwhile for almost everyone, since the scale of damages in the upper tail exceeds almost everyone’s accessible wealth.
since the scale of damages in the upper tail exceeds almost everyone’s accessible wealth
Car insurance is [edit: in the US] bounded: a standard policy will cover you up to some cap (ex: $50k). I think maybe your comment is a better argument for umbrella insurance, though that is also not infinite.
Ah I see, it appears to be local differences. Standard third party car insurance here (in Australia) typically covers up to $20 million. It isn’t infinite, but it does remove almost all of the financial tail risks for almost everyone.
Yes, insurance for your own car’s value is usually not great—it’s bounded and in most cases cars are relatively easily replaceable with something functionally almost as good for relatively low capital expense.
Insurance for liability to third parties is worthwhile for almost everyone, since the scale of damages in the upper tail exceeds almost everyone’s accessible wealth.
Car insurance is [edit: in the US] bounded: a standard policy will cover you up to some cap (ex: $50k). I think maybe your comment is a better argument for umbrella insurance, though that is also not infinite.
Ah I see, it appears to be local differences. Standard third party car insurance here (in Australia) typically covers up to $20 million. It isn’t infinite, but it does remove almost all of the financial tail risks for almost everyone.
Sorry for assuming you were also in the US!