That would be fine if all insurance paid out was price of a car, but when people get injured, and houses get hit, and they have to pay people for their time off, etc…
See where I’m going with this? You can’t just pay for your car, you pay for what you could do to others with your car, and how it affects you and them (can’t work, etc.)
That being said, I think the insurance companies are crazy. With the profits they are making on a REGULATED industry?! I shake my head.