Glorious wrote:Again, no one is saying that insurance is uniformly a bad idea. Home-owners is generally a good idea. I know I'd still carry my policy even if I didn't have a mortgage.
The point is that the underlying mechanics are different.
Auto or Home insurance when financed is not to protect your property, but the financing company. You might get a benefit, but that is secondary to the bank protecting its interests.
(Also, auto insurance is often mandated by law in case you cause an accident. In this case you aren't insuring your vehicle, you're insuring damage against someone else's.)
Auto or home when you are the sole owner is to protect your propery, and falls into the same class as health insurance. Basically, the idea is that you can't afford thousands of dollars all at once (or even over time) if something out of your control happens. You hope to never file a claim, but paying a deductible can be cheaper than paying to replace a car, home, or internal organ directly.
Electronics insurance is...well, it's still insuring property. The difference is that most electronics you buy aren't going to be financed (hopefully), meaning that you can
replace the device with out of pocket money, so paying for insurance is basically just paying extra money for ownership.
Electronics insurance on a smartphone is just bonkers. Unlike other electronics, most smartphones are bought at subsidized prices. An iPhone 5S is $650 SIM-free, but only $200 with a contract. Since the technology is still advancing in annual cycles, most people are going to enjoy the 5S for $200 and get a 6S/7/whatever two years later. I can see it making sense if you pay the $650 and/or if you know that you'll be in situations where the phone might be damaged or lost, but for the most part, it doesn't make sense. Go crazy on a $50 case + holster + screen protector + tether or exercise basic common sense.
Sorry for the long winded response.