The way insurance works - whether it is casualty insurance or life insurance - is that a group of people, a qualified "pool," put up a poker ante at the beginning of a "hand" (specified period) and only the "winners" get to divide up the money during that particular risk episode. In this case, the "winners" are the ones who have had injuries or losses during the game. The only other entity who gets to take money out of the pot are the insurance companies themselves, in return for running the scam in the first place.
I used to be in the insurance game for several years quite some time ago. Many of my customers were American Indians, and more than a few didn't grasp the concept of insurance, or pretended not to. Most got liability insurance on their vehicles because the state said they had to in order to drive on the state's roads, and got vehicle damage insurance only because the bank they borrowed the money from said they had to do that. Left to their own desires, many simply drove without insurance. I have had a few come in and ask for a refund at the end of the year because they didn't "use" the insurance. That was an interesting concept to explain to them. I used to tell them it was like hiring a bodyguard; just because you didn't get beat up didn't mean you didn't have to pay him.
Most people do understand how insurance works, don't like it at all, but participate anyway because they are afraid of being beat up financially. If you look at it cynically, though, insurance is pure socialism. Assets are pooled and the money is doled out to those who need it. And the ones who are careful and keep their nose clean (the rich) get their money taken away from them and given to the less successful.
Here I am not judging; it is simply a fact of life.
I think the point to be understood with insurance is that it doesn't matter if a private insurance company is running the game or if it is a government who is running the racket, there is still a huge ante to be paid in order to compensate the "winners." If it is a private insurance company, they will take part of the pot for their trouble, and if it is a government, they will take a good part of the pot for "administration" bureaucracy, simply through their inefficiency.
One way or the other, YOU are not going to be a winner.