I think we're are going to have to agree to disagree. Having said that, I don't feel its a ripoff for one major reason. If you do not choose insurance and the package is lost, the seller may refuse to replace the chip or refund your money. (Granted, most reputable dealers will replace the chip on your word, especially if you've dealt with him before). If you choose insurance, however, then you are protected. Whether that protection is provided by the PO or the seller, I don't think is important.