Howard Kunreuther of the Wharton School said consumers often buy phone-protection plans in spite of the low risk of damage. “These are low-probability events by definition. That’s why money is being made by Apple and others,” he said. “People focus on the consequences, and they don’t think about the probability.”
https://www.wsj.com/articles/applecare-and-other-phone-protection-plans-who-shouldand-shouldntbuy-them-11612706400 The Wall Street Journal