Yep. Is similar to what happens when companies donate items for a contest.
For instance....many charity golf tournaments have a hole where a hole in one wins a car. We did this all the time when I worked for Rick Hendrick. We purchased an insurance policy to cover the price of the car int he event of a win. The policy is quite inexpensive because the chance of paying off is very low. Policy like this on a $30k car was about $500k.
$500k for a $30k car seems a bit expensive.