Vehicle Insurance

Had a strange idea this morning ... about vehicle insurance! I wonder why on earth would I get such an idea right immediately when I got off my bed.

Anyway, most spend such an amount every year on vehicle insurance.  I doubt if at least one-thirds of vehicles insured meet with an accident or claim for the insurance.  What about the money invested by the remaining rest two-thirds?? So what came to my mind was this: instead of giving the money to a insurance company, why not ten or fifteen friends get together, invest a certain amount and put it in the bank. From the interest of what they have put in, they could even employ (or pay something more to an existing employee) to do the paperwork. If, by chance, some vehicle meets with an accident, the money is allotted accordingly (perhaps not the whole amount).  Every year they could punctually deposit their contribution to the common account.  In case of no eventuality anytime, the whole money is still with you - plus the interest!  After an agreed duration (say 5 to 10 years), split up the money and start afresh.  Unfortunately if one among the group wants to break away, prior to the agreed duration, he takes only his investment, leaving the interest (of his share) in the common fund itself.

Well, I'm not an insurance agent, least of an economics student, so know not if there are any serious pitfalls of this arrangement. My crux was that the money, if not claimed, is not 'given away' to some unknown third party.