alt Hacker NewsBecause the company will file bankruptcy and nobody will get anything. Requiring insurance up front at least provides some coverage for liabilities.
It's why you can't legally drive without insurance. It's not for you or your car, nobody cares about that. It's for the other people and their property.
Driving badly or dangerously gets you in prison. Insurance is not there to ensure road safety. Road safety is enforced by punishments.