Because I'm buying the service of them paying my liability, and also my own damages if I opt for it, if suddenly I crash. They sell the service of protecting you from financial risk.
A car insurance policy that costs $400 once but only pays for $400 worth of damage ever, and isn't refundable, is a bad deal. No one would buy this unless forced to.
A car insurance policy that costs $400 once but only pays for $400 worth of damage ever, and isn't refundable, is a bad deal. No one would buy this unless forced to.
False equivalence.