Worked examples / Protection
Five days at $25 a day. A 1 in 50 chance of damage you would owe $3,000 for. Check first whether your card or own policy already covers it.
It costs $65 more than it returns on average. What you are buying is not having to face a $3,000 bill.
This is a worked example with illustrative figures, not data about any real person or company. Change any of them in the calculator and the answer changes with them.
How this answer was worked out| You pay | $125 |
| Chance x payout | 2% x $3,000 = $60 |
| Back per $1 paid | $0.48 |
| Break-even chance | $125 / $3,000 = 4.2% |
| Costs more than it returns by | $65 |
Every formula is written out on the formulas page.
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