Fear Itself, you’re sort of right. To buy insurance against losses that you could easily afford to cover (or to pay for warranties on something you could easily afford to replace) is foolish. But to pay money you can afford to insure against losses that you couldn’t afford makes sense. That’s because money isn’t always “worth” the same; it depends on your circumstances and how badly you need it. (Otherwise, no one would ever borrow money at interest.)
Sweet!
I was winning for the first 12 years or so. All I have to do is quit while I’m ahead.