Whether or not to get insurance should have nothing to do with what makes one sleep – again, it is a mathematical decision with a correct answer.
Don’t be overly naive consequentialist about this. “Nothing” is an overstatement.
Peace of mind can absolutely be one of the things you are purchasing with an insurance contract. If your Kelly calculation says that motorcycle insurance is worth $899 a month, and costs $900 a month, but you’ll spend time worrying about not being insured if you don’t buy it, and won’t if you do, I fully expect that is worth more than $1 a month.
But do be actual consequentialist about it. If the value of the insurance is more like $10, but the cost is $900, I doubt peace of mind about this one thing is worth $890 a month.
Don’t be overly naive consequentialist about this. “Nothing” is an overstatement.
Peace of mind can absolutely be one of the things you are purchasing with an insurance contract. If your Kelly calculation says that motorcycle insurance is worth $899 a month, and costs $900 a month, but you’ll spend time worrying about not being insured if you don’t buy it, and won’t if you do, I fully expect that is worth more than $1 a month.
But do be actual consequentialist about it. If the value of the insurance is more like $10, but the cost is $900, I doubt peace of mind about this one thing is worth $890 a month.