$1k 4 year "pro" protection plan for $10k camera?
Jun 19, 2019 20:09:11 #
There is a general concept in such protection plans that one needs to understand. These are insurance policies based on the actuarial risk of loss. When they are pushed aggressively as part of the sale of any consumer item, it is because it is the highest profit margin add-on the seller can market. High margins mean insurance inefficiency in that you are paying disproportionately for the cost of marketing versus the actual cost of risk. If the premium is $1000 one should not be surprised if the actuarial risk is only 25% of that.
That said, insurance spreads the risk, so if cannot not bear the risk of loss and cannot find coverage for similar risks at a lower price, as long as you understand how little risk protection your premium dollar represents, it may make sense to protect against the loss.
That said, insurance spreads the risk, so if cannot not bear the risk of loss and cannot find coverage for similar risks at a lower price, as long as you understand how little risk protection your premium dollar represents, it may make sense to protect against the loss.
Jun 20, 2019 06:27:18 #
rmalarz wrote:
You're welcome, Johnny.
--Bob
--Bob
Got a little laugh. It's been decades since I have been referred to as "Johnny"
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