Insurance

There is a feature called "insurance" in EVE. You activate it in any station, clicking on the insurance service on the station services menu below the undock button. You need to pay insurance cost to activate it. You receive insurance payout when your ship explodes. It covers the hull only, not modules or cargo. Let's check out its numbers to see exactly how it works and when does it worth having.

This is the insurance page of my Moros. Let's put the numbers into Excel and see what we get: What can we see? At first that if you pay nothing, you still get some money. It's a welfare provided by CCP, the infamous "40%" insurance. The second thing is the 2.0x on the fitted line and the fact that the line perfectly fits. It means that whatever you paid for the insurance, you get its the double back.

From that, we can tell when to insure: if you believe that the ship has more than 50% chance to be lost in the next 12 weeks, you should pay money to insure it, as 0.5*2 = 1, you will get more money out than you put in. Typically in highsec ships live longer, so insurance doesn't pay out.

Secondly: if you choose to insure, always platinum insure. If getting X money is good, getting 2xX is better, so always put the maximum in to get maximum out. Buying in-middle insurances is dumb.

Ships vary in insurance value. T1 ship insurances cover most of the price (you can buy Moros for 2.5B), while T3 ships can be insured very bad. But it doesn't affect the above, getting 10M is better than getting 4M, so if you have more than 50% chance to lose it in 12 weeks, insure it!


PS: undisputed moron of the week.