This is my real person story. Last time when I was younger, me and my friends go for a long distance driving holiday. We rent the cars, but as we were students there, we were cheap skate, and decided on not buying the insurance which was AUD 150. So long story short, we met an accident, and the whole car was wrecked. Luckily we survived, but we had to fork out money to pay a whole car, AUD 20K. So is insurance necessary? You decide. But I say be wise on what you pay for, not be sold by agent words. First be safe and secure, then be rich. If you are not safe, your riches can be gone in an instant.