Which of the following statements about auto insurance is false?

The statement that auto insurance is not mandatory if you have a perfect driving record is false because, regardless of an individual's driving history, automobile insurance is typically required by law in most states. All drivers must carry a minimum level of liability insurance to cover damages or injuries they may cause while driving. The requirement for auto insurance exists to ensure that drivers can cover costs associated with accidents, thus providing financial protection to accident victims as well as the insured driver.

This requirement holds true even for those with an excellent driving record, as no one can predict future accidents or incidents that might result in financial liability. Therefore, the overall legal framework mandates insurance for all drivers, regardless of their past driving behavior, making the assertion that having a perfect driving record exempts one from needing insurance incorrect.