I hear what you are saying, but for new cars $10,000+ insurance is good protections. Less than that things start to be a bad investment.
So in your example, No, you do not get $7000. Here is why, each year your car is going to depreciate, and by the time 10 years go by you have a car that has depreciated to $500 that you have invested $7000 in insurance on. Let say you drive it into a tree and total it, how much do you think the insurance company is going to give you? Let say your deductible is $500, and your 10 year old car blue books for $650. The maximum the insurance company is going to give you is $150. Now think about how much better off you would have been investing that $7000 in a mutual fund or other better performing investment. This to me is more painful to experience than the loss of property less than $10,000.
Any car that I have owned that is less than $10,000 I carry only the minimum required liability by the state. Insuring a car less than $10,000 is also a bad investment, unless you can work out a great deal with your insurer, such as $1,000 deductible, excellent driving record, etc. When the blue book of your car gets below $5000, it is insane not to drop comprehensive coverage.
It all comes down to how much money you are willing to literally flush down the toilet in hopes of getting what you want back after something bad happens. Which in neither case, cell phones, cars, you are not going to get what you want anyway.