Andorra shouldn't be excluded. While not an EU member it has always been included and is often visited by other Europeans.
I wouldn't dismiss the cheap Turkish insurance, just because it seems too cheap. In any case, you will have the official paper in your hand if stopped or, like me, unlucky enough to be involved in a collision. It's the first paper the cops want to see.
As to your question of what is smarter: I think there are many answers to this one, not least depending on what countries you specifically intend to visit and how long you wish to travel.
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