Here on the old continent, car liability insurance is mandatory, to protect the public from you operating a potential deadly piece of machinery.
Comprehensive or theft insurance is not, as the public cares very little if you have to take the bus after causing an accident with said piece of sh^Hteel. You may decide to take the risk of losing your car, and the lower it gets in value, the less attractive comprehensive insurance becomes. But if you should injure a cyclist, the insurance company will pay (and, should you have been intoxicated, may recover their losses from you). The victim should not have to suffer from your bankruptcy.