“At some point, a large segment of the population will simply forego auto/property insurance because they do not possess assets that exceed the cost of the insurance itself - or the benefit of the insurance is unlikely to exceed the cost.”
Being a conservative, I paid off my house early, but I still keep insurance for the case of some type of lawsuit against me, such as from a contractor doing work. But there is a limit to this...
a large segment of the population will simply forego auto/property insurance
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In CA if your auto insurance drops, the ins. company tells the DMV.
The DMV, with lightning speed, informs you that your registration is now canceled until you renew. (See DMV can do something quickly.)