There are many ways to look at insurance.

A couple of months ago I received a package of chips worth many thousands of dollars. The seller sent the package Fed-Ex overnight - NO INSURANCE.

The theory was that insurance marks the item as something worth stealing. Also, if lost or stolen, the chance of getting true value would be dubious. If your goal to to get the item delivered, insuring it does not help.

I hardly ever insure myself. What I will do is get delivery confirmation if I'm afraid that the recipient might claim the package never arrived.

To each his own.

My day job involves pricing automobile insurance. In order to arrive at a proper rate, predicting the cost of future losses and expenses is needed. If I were pricing insurance on a $5 chip, I'm sure the true cost would be in the 3 to 5 cent range. $1.30 is by far an excessive rate.