Insurance pays for a lot more than the vehicle, i.e. medical.
If you have enough capital to self insure then you should have enough money to blow on insurance. After all what's a few hundred dollars? "Wasting money on insurance should'nt be an issue.
If one is really concerned about spending a few hundred dollars on insurance then how will one really feel when he or she pays thousands for an accident settlement?
I assume you have insurance on items of value? I look at it this way, if something were to ever happen to my 86 SL (106k miles), I expect my insurance company to pay up!!! Without full coverage I would be SOL...
I would agree it makes no sense to insure junk. Hence, the litmus test to use when wondering whether to insure or not to insure: Is it junk or not?