For the record I am not arguing that mariners ought to have insurance. It is up to the individual. For most mariners it likely is not worthwhile.
I do however think it should be recognized that when you chose not to have insurance you are choosing to be self-insured. For example when I purchase electronics I turn down the loss/damage insurance they offer because I am willing to accept the potential loss. Same thing with my car. I only carry the required liability. If it gets totaled I will be out about $4000. I am a careful driver so over my lifetime I can come out ahead by not having it covered. Same with my house. I have big deductibles as I can absorb some of the lost. Not so however if the house was a total loss in which case I am covered. It’s like dougpine pointed out, it a matter of knowing how much you have at risk.
[QUOTE=c.captain;57820]I Remember, insurance companies are only profitable by NOT paying the insured.[/QUOTE]
Insurance is in some ways similar to a lottery. In both cases a very large number of people pay in a small amount and a very small number of people receive a large payout. In each case all that is required to make a profit is to take in more then they pay out.
The difference between a lottery and insurance is that the lottery picks payouts at random and insurance picks payouts in accordance with a contract. Profits could be increased by trying to cheat but an insurance company can, in principle, meet contractual obligations and still make a profit. It is essential a math problem involving statistics and probability.