Exactly. I always do this, and also use VM to test-drive apps before installing on my main (host) PC. No viruses, no malware, no corruptions, no problems!
Edit: ...and always disable AutoRun after a Windows installation.
Always do ... what? Always attach found USB to a computer running Knoppix from write-only media? Always attach found USB to a computer running a VM? Always attach found USB to a computer running Knoppix from write-only media within a VM? Great.
What protects your BIOS/FW? What protects your hypervisor?
When I want to read a "dangerous" USB stick, I launch my "test VM" in VMware and mount it there. AutoRun is disabled on both the host and the guest OS. Never had any issues in 25 years of Windows computing.
How can mounting a USB stick on an AutoRun-disabled VM affect your host's BIOS? Honest question, I want to know.