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Should I carry all my paperwork in the car at all times?

Is it necessary to carry documents such as driving licence, insurance certificate and MoT test certificate with us these days? Years ago, I heard of someone who was on holiday and was told by the police to produce his documents at a police station within a fairly short time. He did not have them with him so he had to go home early, thus cutting short his holiday. Ever since then I have carried such documents with me on holiday, but I can't believe in these online days it is still necessary. I would be glad of your advice.

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I carry my driving licence photocard and trade insurance certificate just in case. Never needed them, though I can't be bothered to drag around the ridiculous paper counterpart or my MoT certificates. They stay with the car documents in the safe.
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