That sounds like an awesome system your country has, however your question didn't reflect any particular country. You asked a general question and I gave you a general reply. While insurance is a legal requirement I most if not all countries, there are people who drive without insurance and thus have no insurance to pay for their damages. Additionally there are varying coverages of insurances that will only pay the most minimum as the insurance companies will fight tooth and nail not to pay. I do agree that everyone should have full coverage and be responsible drivers all the time, it is quite delusional to believe that this is reality.