Final answer:
It is true that credit cards with magnetic strips should not be placed near permanent magnets due to the risk of demagnetization or incorrect encoding of the magnetic strip.
Step-by-step explanation:
The question of whether physical insurance cards or electronic insurance cards must be kept in the vehicle at all times is an important one in the context of law and driving regulations rather than physics. However, the part of the question related to the recommendation against placing credit cards with magnetic strips near permanent magnets does pertain to the subject of physics, specifically to the topic of magnetic fields and their effects on magnetic strips.
It is true that it is not recommended to place credit cards with magnetic strips near permanent magnets. The reason behind this is related to the principle of 20.1 Magnetic Fields, Field Lines, and Force. Magnetic fields can demagnetize the magnetic strip on a credit card or even encode it with incorrect information, rendering the card dysfunctional. Therefore, to preserve the integrity of the information encoded on credit cards, it is advisable to keep them away from strong magnetic sources.