Almost all insurance is a bad bet in some way. The Ins Cos. know what they will pay in claims and know they will collect more than that in premiums over a large enough pool of insureds.

Insuring for catastrophic and unpredictable risks makes plenty of sense. You distribute the risk over a group, and your risk becomes only the premium.

Insuring for smaller, predictable risks doesn't make much sense. Car repairs are, IMO, exactly that.

But if you feel better knowing you won't be out-of-pocket for large repairs, and that you likely will pay more in premiums than you ever see in covered claims, I think that's fine. We spend money to feel good on far more foolish things, really.