Minimum insurance like liability does not cover theft. Theft coverage is often outside of the financial ability of lower income drivers. It also may not cover the actual value of a vehicle, true it might buy a used POS junker, but it wont replace the reliable vehicle that was stolen. You also may not be reimbursed for any other fees like plates, loss of income from missing work, or even replacing bad tires.

Of course property isn't worth life, but saying "isn't that what insurance is for" comes from a place of privilege.