All of that said, I would love for you to have it 100% correct, because I fucking loathe insurance companies
The vast majority of accidents are caused by bad judgment from the driver, and to a lesser extent - poorly maintained vehicles (which will be mostly resolved when EVs are mainstream anyway). It was probably originally enforced due to potentially wrecking an innocent's car (as you decide if you want to risk things if it was just your car at stake).
Yes, okay, car insurance will still exist (contrary to my initial post), but it will be like say, buildings insurance - very low, and non-forced (people won't have to insure if they don't want to).