Ricardo paid an annual premium of $1,000 in total liability coverage for his car, including up to $200,000 in bodily injury coverage and $100,000 in property damage coverage. Ten years into his policy, Ricardo caused an accident that resulted in the other driver claiming $60,000 in medical costs and $20,000 in car damage. Ricardo's insurance company paid the claims. Did the benefit of transferring the risk to the insurance company outweigh the cost of the premium?

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