Earlier quoted context omitted.
Nothing about laissez-faire precludes insurance and bonding. If anything the very non-laissez-faire phenomenon of bankruptcy is what makes an insurance mandate necessary. Not that I'm against bankruptcy laws in general. I'm just pointing out that personal liability is hardly unregulated.
Arguing that personal liability laws already exist and can enforce this system is technically true. But you first have to concede that a cash settlement is potentially worth brain damage, loss of vision, loss of limbs, loss of family members, etc. Therefore a potential liability lawsuit will result in no net economic gain, but restoring what you already had (I.E.: How much is your SO's life actually worth to you?). I…
We could basically eliminate car accidents tomorrow through extreme measures. We could lower speed limits to walking speeds, cover all vehicles in cushions, and require everyone to hire the services of a (licensed and bonded) crossing guard before crossing the street. If it saves one life or debilitating injury, isn't it worth it? Obviously not.
So at the end of the day, someone is balancing things like time, money, and effort with safety. The only question is who should decide what a reasonable cost is. I would argue that, given the right tools, you are better at protecting your family than whoever runs the taxi commission, DMV, or even the city council.
Reasonable people can disagree on what a reasonable cost is. They can disagree on who makes the decision and how. But it's not reasonable to jump into polemics about who has a morally superior worldview.
Disclaimer: I'm not a Randian, so I don't care to defend Randian mistakes, but I disagree with your logic on this point.