[speed_spread]

Insurance companies will just follow the money like they do in (USA) healthcare. Expensive repairs create a world where there are two kind of people, those who are insured, and those who aren't. A high cost of repair guarantees you _really_ don't want to be in the latter group, so you'll pay whatever is asked to be in the first part. On their end, the insurance companies will use their weight to negotiate much lower prices on parts and service, increasing their margins.

[legutierr]

I’m not sure how this logic applies when having insurance is mandatory. If you don’t have insurance, you’re not driving legally.

Are there really people out there who wouldn’t otherwise buy insurance, but they choose to do so only because the cost of repairs is too high?

[sokoloff]

Having liability insurance is mandatory. Having collision insurance is optional (unless your car is financed, in which case it is likely required by the terms of your financing, but not by law).

I don't carry collision insurance on my daily drivers (the newest of which is 9 years old), because it's too expensive for the coverage offered.

[pandaman]

Only liability insurance is mandatory in many (all?) states. And even if you believe that your car can only be damaged by insured drivers and you will always be able to make a claim against their insurance, the sufficient coverage on the property damage liability is just $5K in California, for example.

[6510]

Do you want to sell insurance against something that costs $100 or something that costs $10 000?