Offer your insights or judgment on the input financial query or topic using your financial expertise. Reply as normal question answering

Why do people buy insurance even if they have the means to overcome the loss?
You're making the assumption that a person would be aware, in advance, that they'd have enough resources to pay the costs of anything that might happen. Second, you're assuming the cost of insurance would outweigh what the person would have to pay out of pocket if they didn't have insurance.  In other words as an example, if the insurance premiums on my car are so high that it would be cheaper for me to replace it myself in cash then it might make sense, but how likely is that to be the case?   There's a gambling adage that I think applies here - "Always bet with the house's money".  Why would I put my own money on the line in the event of some event rather than pay for an insurance policy that takes care of it for me?  That way, my costs are predictable and manageable - I pay the premiums and perhaps a deductible, and that's it.