>>12580472>Still, the average person will pay more into car insurance that she would have to pay for car damages were she uninsured. >Otherwise there would be no profit margin on an insurance business. >So the difference is degree, you are losing more money on average with both insurance and lottery; where each person draws the cut-off point is always somewhat arbitrary.Not him.
But they don’t do it as a hedge to make money, but as a hedge to ensure liquidity. If you end up without a car, but need one to make money it’s pretty bad, if you can’t afford one. Obviously, if you can easily get a loan in that case it’s something different, but you need to factor it in. In some cases insuring something can be good and in some buying a lottery ticked can be, but it depends.
