I don’t know anyone who keeps their license in their car. Car culture is different in the us vs the eu, so maybe not as common over there, but sometimes if traveling with friends you will switch who drives. You should have your license on you if you’re driving. Additionally, it’s good to have your ID in case you forget your credit card somewhere and now you have a document with your picture on it that has a name that matches the card. I still get carded sometimes when buying alcohol or entering certain places so it’s not unusual to want to keep it on hand in case you want drinks or something.

Also good to have your ID and insurance information in case of an emergency.