“… A negative effect of income is often found for insurance against modest risks such as warranties (Chen et al ., ; Abito and Salant, ) and telephone wire insurance (Cicchetti and Dubin, ), while a positive effect of income is consistently found for insurance involving higher stakes, such as health insurance (Smith and Medalia, ), long‐term care insurance (Brown and Finkelstein, ), and flood insurance (Brown and Hoyt, ; Michel‐Kerjan and Kousky, ). …”