Why is insurance so important?

They are called "accidents" for a reason. It's something we do unintentionally and at times try to avoid, but at times impossible to sway away, and that's why it's so important to know what insurance limits you have prior to an accident. Once you have an accident it's too late to buy insurance or change any of insurance limits. Whatever insurance limits you have at the time of the accident is what you are covered for!