I don't think it was that dumb. Depending on how much the inspection and prop costs and how long you'd owned the airplane, you'd still come out positive on that deal.
Every time I buy a new cell phone, they try to sell me insurance for ~$20/month. Then I explained how I haven't damaged or lost a cell phone in ~25 years, and have saved enough to buy ten new phones.....
Ron Wanttaja