Part II:
Insurance is not a sucker's game.
You pay premiums on the assumption that when you encounter a serious financial burden, the insurance company will lessen the blow. It allows you to reduce financial risk.
In the meantime, the insurance company is using your premiums to pay out other people's benefits, pay Call Center Sally in Thailand a salary to cheerfully answer your call and tell you "I don't know", pay off other ongoing expenses, keep reserves, and depending on the company, make a profit.
And, lo, when you do file a claim, other people's premiums are paying for it.
Or, if you prefer to be self-reliant, you can keep your own large emergency reserve in short-term notes and securities.