Based on your financial expertise, provide your response or viewpoint on the given financial question or topic. The response format is open.

Why do people buy insurance even if they have the means to overcome the loss?
Insurance isn't a product designed to protect against financial loss. The product is designed to allow people to pay a small fee (the premium) for peace of mind. This allows the insured to feel as if their purchase was worthy (they see the potential of loss as a concern and the premiums small enough to allow them to not worry about having a loss). Insurance companies will then seek out insurable risks where the perceived losses far out weight the actual losses (risk assessment). So, you answer is that your friends are paying for peace of mind.