Insurance is a way of dealing with your tolerance for risk. That is why there is varying coverage.
For myself, I am fairly risk-averse. I purchased an extended warranty for my car. That's a form of insurance. I weighed the cost versus the potential benefits, and it fit my risk profile.
For some, it would not.
This is a personal question, and one that does not have a right or wrong answer. It's all opinion based on your risk profile.
I made very different choices when I was young. My premiums for collision coverage were much greater. I did not always buy the coverage. Today, as I am older, perfect driving record, etc, my collision premiums are very small. Also, my automobile investment is much greater.
The reason that I carry the coverage, and have a high deductible, is that I personally use the coverage as "catastrophic loss" coverage. Were I to be involved in a minor collision, I would not claim, for the the cost of increased premiums is more than most minor repairs. I feel this is criminal on the part of insurance companies, but that's another discussion completely.
I carry the coverage to make sure that the nearly $80,000 (depreciated value) of cars in our garage are not at risk of complete loss due to unforseen circumstances, or even our own error.
That's my personal reason, yours may be very different...
1998 C230 "Black Betty"