Bryan Caplan on the idiot's stigma

There is an additional benefit to buying certain insurance that, ex ante, we tend to under-appreciate. Excerpt:

Consider these two scenarios:
1. You lose $1000 in some unforeseen way.

2. You lose $1000 in a way your spouse specifically warned you might happen.

It seems to me that #2 is MUCH worse for most people than #1. $1000 is no big deal; but $1000 plus the scorn of your spouse is a very big deal.

This captures only the kernal of the issue, so read the rest here: Link