Having spent a lifetime in the motor vehicle repair industry and now working on the IT side of things, there is certainly an air of smugness for sure.
I buy second hand Benz's because I like them. This is not a completely logical choice, for the reason's you mentioned, but I just want to have that solid feeling around me when driving that is common to most German engineered cars and the asian manufacturers try so hard to copy.
So back on topic, If I am going to outlay ฿1-2 million on a car, I would want it to have comprehensive insurance. If I can't have that I will have to buy one at a price that I am comfotable to lose if I was to have an accident.