I feel like Bob and I think alike. I am not a big fan of the system the way it is, you betting you'll need it and the insurance company betting you won't. The difference is you pay no matter what. The "big insurance company" deals in quantity. Life insurance works because more people are born every year than die. Anyway, I am purchasing a plane for ~35k while thats not necessarily a small number its not millions. I appreciate all the input, and opinions it does effect my decision making process. Thanks again.
Choose what you are most comfortable with, and be comfortable with the decision. There isn't a right or wrong answer. Do what works for you.
However, if paying a premium is "betting you'll need it," then not paying a premium is YOU "betting you won't," because the insurance company isn't doing any betting. They're sharing the risk across a pool. You are accepting individual risk.
In reality though, insurance isn't betting at all, it is simply a way to transfer/allocate risk. Paying a premium transfers the risk to someone else, just as not paying a premium allocates the risk to you.
BTW, life insurance works because there is an army of actuaries calculating the likelihood of payout, and pricing premiums accordingly. I don't believe birth rates have anything to do with it. Death rates...sure. I don't expect to "win" any life insurance payout, but it is very comforting to know my wife will get a great big check if I fall over from a heart attack or get hit by a bus.
Insurance companies are ONLY in business to make money. IF you have a claim, the insurance company will do everything it can to not pay anything.
All "for profit" companies exist to make money. You are in business to make money, so is Vans. All three of you provide services as a way to generate revenue, and hopefully there is profit left over.
My experience with aviation insurance companies is exactly the opposite of yours. They could not have been more helpful. I've received about $30K from two payouts (neither my fault) and there was a minimum of paperwork and inquiry. In one of those claims, I'm sure the total my insurance company paid out was around a quarter million, and no one got sued.
I could suffer a $70K loss (rough value of my RV6) and survive. I'd just end up working a couple more years to compensate. My flying would be in a world of hurt though, and would probably be done altogether.
And...my premium went down $300 this year.