The reason that we are given from people advising us to get car insurance is that it will help us deal with unanticipated events such as accidents and theft. Car insurance will help a person fund his next purchase of a vehicle after his earlier car has been smashed (maybe for no fault of the driver... or maybe not). However, more than anything else, insurance of all kinds, whether car insurance or home insurance or even medical insurance, makes a person feel that much more at peace.
Some of our most major investments are made on our cars and homes. Losing any of these (whether to accidents, theft, fire or natural disasters) would entail a great loss. And the loss is not only of money but also of peace of mind. Taking car insurance is like taking a precaution against worry and mental turmoil. Not only will a person with car insurance find it easier to get funds to buy a replacement car, he will also not have to worry as much as a person without car insurance.