If anyone gets sandwiched as such, you're pretty well screwed. (Trust me, I'm a newschopper pilot, and I was just over a fatal wreck where a Suburban was cut in half, LENGTHWISE.)
The smart got a top crash test rating from the insurance industry, and USAA's rate to me is reflecting that. I live in an urban environment, and this is the ultimate urban car. It's certainly not for everyone in every place.
P.S. Remember also that many SUV's often have extremely poor crash test / rollover results and insurance premiums for them are reflected likewise.
Dream on. The simple physics of a collision is going to result in the majority of the energy being transfered to the smaller vehicle. Since that pop can is WAY smaller then a number of other vehicles on the road, be my guest and drive it all you want, but don’t kid yourself that you aren’t going to take a hit in safety if you get in a collision.