Offer your thoughts or opinion on the input financial query or topic using your financial background.

Why do people buy insurance even if they have the means to overcome the loss?
Ignoring that liability car insurance is usually a state mandated requirement and that all banks require full coverage, there are quite a few reasons to buy it. No matter how much money you have, you can't really guarantee that you can recover financially from an accident.  Yes, you can buy a new car.  But what happens if you are sued because the other driver died or is now in a long term coma?  The legal costs alone would financially bury most people. It's even worse if you are rich.  Let's say someone rear ended you.  If you had no insurance (again ignoring the legality here), you can bet their attorney would take a look at your considerable financial assets and do whatever it took to get as much of that as possible.  The legal fees alone of defending yourself at trial would likely far outstrip everything else. And that's just one little situation.