Once aircraft operator lost my luggage when I travelled for skiing. If I would have to buy skiing boots and other equipment, plus do it for two persons, on the spot in a Austrian ski village, I would have spend thousands. Instead insurance that cost around 30 EUR per person covered everything.
The other is the case when neighbors washing machine that lives above me had broken (the hose got deattached from the machine) and for whole working day the water flooded through my flat all the flats below me. When the «house maintenance representative» (dont know how to call him correctly, a person who is responsible for keeping up the house) came, he has pointed that I had to change wallpapers in two places and «around 2m2 of laminate. While the whole flat was destroyed and I had to change all the floor and electric wiring (the water was flooding mostly from electric sockets, and the water pressure was so strong, that it has dropped tv). Again, it would cost thousands to repair all that, while I paid only 100 EUR annually for insurance.
100 EUR per year isnt a life changing amount, and nearly everyone can afford it. Yet people prefer not to do it, and then spend thousands from their own pocket.
If there is a risk, there should be insurance. In some cases, we don't know whether there will be a risk or not, so there is hesitation about whether insurance is necessary. Insurance is sometimes effective in covering losses that we did not foresee. That is why its benefits are so great.
Insurance costs are not the same in every country, so the number of people who use different types of insurance varies from country to country. In the country I live in, insurance prices are very expensive and very few people insure many things. If these costs were lowered, the number of people taking out insurance could increase.