Editing Insurance (section)

===Limited consumer benefits===
In the United States, economists and consumer advocates generally consider insurance to be worthwhile for low-probability, catastrophic losses, but not for high-probability, small losses. Because of this, consumers are advised to select high [[deductible]]s and to not insure losses which would not cause a disruption in their life. However, consumers have shown a tendency to prefer low deductibles and to prefer to insure relatively high-probability, small losses over low-probability, perhaps due to not understanding or ignoring the low-probability risk. This is associated with reduced purchasing of insurance against low-probability losses, and may result in increased inefficiencies from [[moral hazard]].<ref name=Schindler1994>Schindler, R. M. (1994). [http://www.business.camden.rutgers.edu/FacultyStaff/research/schindler/Schindler%20(1994).pdf Consumer Motivation for Purchasing Low-Deductible Insurance] {{Webarchive|url=https://web.archive.org/web/20110511084602/http://www.business.camden.rutgers.edu/FacultyStaff/research/schindler/Schindler%20(1994).pdf |date=11 May 2011 }}. In ''Marketing and Public Policy Conference Proceedings'', Vol. 4, D. J. Ringold (ed.), Chicago, IL: American Marketing Association, 147–155.</ref>