Dive Insurance or Not

[ScubaSarus]

And even if you never use it, consider the $70 going to a worthy organization that keeps up-to-date on the latest in dive-related medical issues & treatments. .

A lot all of us here have used DAN's knowledge and research without realizing it.

 

[vladimir]

How about calculating the risk to reward ratio.

your risk spending $70 for a possible $100,000 to $250,000 benefit or expense that could lead to bankruptcy and loss of all posessions.

That should sum it up and cut thru the economics babble.

Let's do that, very simply. If the event you are insuring against could cost you $100k and there is a 1 in 10,000 chance of it happening, what should you pay for coverage? $100k/10,000 =$10 is your expected loss. DAN's actuaries have figured it out, and it's a lot less than $70.

Now, as I have said before, if you don't want to risk the $100k, or there is utility for you in the security or convenience of the insurance, buy it. Those conditions would probably make it a buy for most people, and I am not counseling against buying it. I am just saying that it is not "foolish" to not buy it--it is, for some, a perfectly rational decision.

 

[RJP]

I'm glad you studied cumulative prospect theory. Too bad you didn't understand it. If you had, you'd realize this is the theory that explains why people often make bad decisions--because they overweight small-probability events with large consequences, like shark attacks, decompression sickness, and lottery winnings. So stop buying lottery tickets and insurance you don't need, and focus instead on your high cholesterol and your credit card debt.

That's where the "utility" portion comes in of course. The $1 you spend for a lottery ticket buys you the "utility" of a day or two dreaming about what you might do if you actually won the lottery. The money for an insurance policy buys you the utility of not having to worry about how you'd pay the $50-100k cost of a chamber ride, no matter how small the likelihood of that actually occuring.

If you are really situated, as you've stated, that an unexpected loss of $50-$100k "wouldn't ruin your day" then god bless you, and by all means pass on buying insurance.

 

[ScubaSarus]

Let's do that, very simply. If the event you are insuring against could cost you $100k and there is a 1 in 10,000 chance of it happening, .

Were you get this figure ?

 

[matt_w]

Were you get this figure ?

Pretty sure it was an example, he was demonstrating how the calculation might be done.

 

[ScubaSarus]

Pretty sure it was an example, he was demonstrating how the calculation might be done.

Ah!! Only an example then.

 

[PToone]

I recently signed up for DAN because my primary does not cover Diving accidents. They will probably cover the ride, but will not pay for re-compression type rehabilitation. And for $30 a year...it's worth it.

 

[Tug]

I have the DAN Preferred plan, and I agree with RJP in that the $70 is well worth the "utility" of not having to worry about being covered if I need a chamber ride.

 

[D_B]

Again .. how do you know that it's only going to 100K ????

how about over 250K with ICU and Rehab ?
and how about another 25K for permanent disability ?

 

[Randy43068]

If you dive locally do you have dive insurance? If you need help will your normal medical insurance cover you?

It's so cheap one is foolish NOT to have dive insurance.

I used to have Dive Assure ( backed by AIG ) but now have DAN. I'm quite sure I'll stick with DAN from now on.