Originally Posted by bill_de
Or would rather not pay for out of pocket.
If you are earning money (hopefully all are) with your money, the cost of insurance is not only covering the money you already have, but it's future earnings.
I could have paid cash for my Jeep. But the money I have invested is earning more than the interest rate. It's not a big loan as my trade in covered most of it.
In either case, insurance or financing, if you go based entirely on what you can pay, you might be hurting yourself financially.
Agreed on the don't want to pay for.
Another situation would be where you can't deduct any of the losses to get even a pittance back, so you bet you WILL have a claim, and the insurance company bets you won't. They make a profit just like casinos do... all in the volume and numbers.
If you are a sore loser, you could start cruising canyons with loose rocks, parking under old trees in wind storms, etc.
The money opportunity argument works only if you realistically could, and actually do, invest the money elsewhere and genuinely make a profit higher than the interest you pay on the loan.