In a way I think you answered your own question: it's quite different because (obviously) auto accidents do happen every day. If you asked someone who works at

In a way I think you answered your own question: it's quite different because (obviously) auto accidents do happen every day. If you asked someone who works at an insurance company what do they do, they could tell you that they decrease their clients' risk, or that they sell them peace of mind. The insurance company guy doesn't look down at clients who haven't totaled their cars. But I agree you have a point: if the insurance company doesn't believe that event X is likely (leaving aside the question of whether X is actually likely or even possible), they might charge a premium that's way too small. Then the client cannot have peace of mind because there's no way the insurer will keep their word.