Definitely not true. Point of insurance isn't for small bumps or accidents <10k. Its helpful for that, but not really the intention. I use a 5k deductible, because I probably wouldn't claim damage below that anyway.

Point of insurance is for catastrophic, life changing injuries, or car being totaled. Ontario lowered the legally allowed minimums for a bunch of the (super important, but rarely used) categories in an effort to lower auto insurance prices a few years ago.

Accident benefits are now 65k default. Optional coverage is like 50$/yr to increase to 1mil. If you have any serious injuries that require more than a few months of rehab (ie back injuries, serious physio for rehab, etc) then you will need the mil. This also covers things like attendant care, if you're at home and need help with things like showering, cleaning the house, etc. 65k vanishes SO fast.

Make sure, if you don't have good LTD through work OR you don't have a good emergency fund, that you top up your income replacement to match your current income. I added 1k/wk income replacement for like 25$/yr.

Optional catastrophic impairment is another clause you should add. Default is 2mil, but if youre actually catastrophically impaired, you'll need the 3mil unless you have family that can fully support you. Again, its 11$/yr for me.

Insurance shouldn't be used as a 'oops, I got in a fender bender and its 5k to fix'. That shit is going to get your rates jacked up cause insurance companies suck. Its in case you serious get fucked up and derail the rest of your life, and in that case you want to make damn sure you have good insurance that will cover you.