When I am NOT in an eBay-PayPal situation, and, say, I am selling a $5 or $10 chip, I can tell the buyer to add on $1 if he doesn't want insurance, or add on $2.35 if he does want insurance. Legally, I guess the seller is responsible for delivery regardless, but as a practical matter I think it is nice to give the buyer a practical choice. In the real world, the buyer isn't going to sue if the item does not arrive, especially if he opted not to pay for insurance. The buyer can look at the seller's experience, club memberships, years of experience, web site, past dealings with the same dealer, etc., and then the buyer can choose to save $1.35 on a $5 or $10 transaction. .... ..... ..... But in the eBay-PayPal world, the seller is practically forced to charge the buyer an extra $2 or so for insurance and delivery confirmation. (With insurance, who would ordinarily want delivery confirmation?) So, basically, there is no freedom of choice or discretion in the eBay-PayPal world.