I'm not sure that people had a stronger moral compass in the past! People did all sorts of heinous things and then got a free pass with a confession... On the other hand, the norms were different back then, so it is difficult to recast our current morality into the past!

The thing that caught my eye was the car insurance. Surely, that is the third party insurance that is mandated? So that it is certain that you can cover the damage you do to other people, whether you can cover the damage to yourself or not is your own problem. But if you can't cover the damage to someone else because you go bankrupt that is a problem for someone else?