Insurance is one of the risk management techniques that provide protection against a financial loss arising from the occurrence of unexpected events. It is financial service that provides individuals and the economy as a whole with a number of important financial services and plays important psychological and social roles of freeing people from worrying. Purchasing insurance policies helps the individuals to recover from damages and losses arise from different risks. In Ethiopia despite the increase of insurance companies, insurance is one of the most overlooked and considerable unexploited potential and also little researches has been conducted on the insurance consumption and attitude of people toward insurance. The main purpose of this study was to examine AAU communities'' attitude towards insurance services and to understand their intention to purchase insurance.