Phil decides to steal (what he believes to be) Luke’s bike to teach him a lesson about leaving his property lying around town unsupervised. In the process of helping a neighbor who locked herself out of her house, Phil loses the bike because he didn’t lock it before walking away. Phil returns to the bike shop in the hopes of explaining his situation and getting another bike for Luke, but the employee won’t give him a new bike because Phil didn’t buy the insurance before. Phil believed that insurance was for “suckers” but risk averse people may prefer the added cost in exchange for peace of mind.
See more: insurance, risk aversion, unintended consequences
Economics of Modern Family 