by thenewgreen

Have you ever considered healthcare costs as an inevitable fixed expense over the course of your life? Or are you, like me, going to live forever unscathed?

Insurance is something you pay into a little just in case something really expensive happens that you wouldn’t be able to afford. Insurance hedges against risk. It protects you against bad stuff that probably won’t happen. The amount you pay for insurance has less to do with how expensive that bad thing may be, and everything to do with how likely that bad thing is to happen. Auto insurance is more expensive than homeowner’s because cars smash into each other with relative regularity whereas houses, though more expensive, tend to stay put.