It's a lot like turn signals - social communication that goes beyond the practical benefit. If you're using your turn signals, you're saying "I'm aware of the environment and a good participant in the game we're playing because I'm following the rules". If you don't use signals, you're telling people that you're not following the rules, and that makes you suspect in all the other social games. Kinda funny to do some people watching with that perspective, and to start to see how many assumptions are based on society being high trust - the exploitable vulnerabilities are endless, and people communicate a lot about themselves in the rules they choose to follow or break.
>do some people watching with that perspective
100%, especially while driving as you say. When teaching my daughter driving I tell her to watch for people other people breaking the law/bad driving in other ways and distance yourself from them. The probability of them doing something else stupid in the next few minutes when your in their vicinity approaches unity, and it reduces your chances of being what they hit.