This Blog Entry Stolen From Taylor Rogers’ Linkedin Post – Charlie Munger would teach you to buy as little insurance as you can afford to.
Direct quotes on insurance from Charlie:
“As soon as you’re wealthy enough to self-insure, you should. Think of all the crumb-bums of the world that drink too much and then file big claims with the insurance company. Why would you want to pay your share of their stupidity?”
“I carry no fire insurance anywhere. I carry auto insurance only because I have to.”
“We teach companies to buy as little insurance as they can reasonably afford to, and self-insure the rest.”