Yes, but car, home (or renters), and health insurance are required for the average person because all of those have a reasonable chance of absolutely bankrupting a regular person for life at any moment.
The alternative is to pay more taxes and have the government provide the insurance, which may or may not be better. There are pros and cons to both.
Either way though, you need the safety net that insurance provides.
No, they usually are just LED’s these days.