Whatever you pay in insurance is unlikely to cover the damages won by an injured party. That money is coming out of the pockets of people who will never cause an injury.

Good drivers subsidize the assholes.

Not quite, you're paying insurance to cover the costs which they might decide not to do and you don't even get a refund for services not rendered.

I’ve already paid so much money. How many people am I allowed to hit now? I still haven’t hit anyone, so I feel like I’m missing out.

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It used to be a driver could present a cashier's check as proof of financial responsibility, but it was a pretty high sum. There is a similar system with some states where you can purchase a bond that satisfies the insurance requirements. It is quite unpopular though and presents a host of other problems and liabilities.

You have to BET a third party that you WILL hit someone (they pay if you do).

So like self-insurance?

So like you can do that if you’re rich. You out $1M in a bond, or show some proof annually that you’ve got that available, and poof - that’s your insurance.

Most people can’t afford a car without payments. So insurance is there so when / if you break someone else’s car, you’ve already made those payments.

Plus some capitalistic grift for the insurance companies, of course. It’s a courtesy they’re providing you, after all.

Similar to how, in order to rent a place, you have to pay in advance in case you break something