For what it's worth, I have a $12,000 car, and only pay Liability. That said, I pay for the most liability they offer, along with a few million in Umbrella insurance :)
Here are some numbers for you. Don't forget the car depreciates. In 5 years that car might only be worth $2000.
The vast majority of accidents don't total the car. In 2015, the average collision claim was $3,350; the average comprehensive claim was $1,671:
Source:
http://www.rmiia.org/auto/traffic_safety/Cost_of_crashes.aspLooking at your post, it seems you might drive that car for another 10 years. Here's what it looks like if you invest the extra $40 a month instead:
After a few years of paying the extra premiums, you might've paid more to insure the car, than it's actually worth.
Since the expensive cars inflate the average, I'd guess the typical median collision claim is closer to $2,000. Paying $480 a year (and a $500 deductible) to insure against this risk, doesn't make financial sense. The math simply doesn't work out in your favor...and the insurance company knows this. That's why they offered to insure the vehicle at that price. They need to be profitable.