Earlier quoted context omitted.
I don't think that's what the author was getting at here - a compelling reason is that the value of the payout to fix your own car x the probability of it happening is lower than the total premium extra. Eg the "Insurance is only worth it for things you can't afford" mentality. This also checks with the OP in this subthread: The insurance seller will always push for more coverage for self-interested reasons.
That's opposite my experience: I took an appointment a few weeks ago from my insurance agent (Texas) who wanted to review my existing insurance vs my needs. On the call I laid out that same logic -- I can afford repairs to my car out of pocket, so it doesn't make sense to insure it, so maybe I should drop it (just keep liability) -- and she agreed, and was happy to tell me the savings! (I didn't go through with it on…
Some will try to milk you for all you're worth. Others will try to stick to things that you plausibly need and hope that selling to more people and having a higher renewal rate will make up for the extra amount that they aren't squeezing out of each person.