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All drivers who lease the cars they drive carry automobile

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All drivers who lease the cars they drive carry automobile [#permalink] New post 14 Jul 2013, 10:13
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73% (01:54) correct 27% (01:26) wrong based on 85 sessions
All drivers who lease the cars they drive carry automobile collision insurance, but many who own the cars they drive do not.

Which of the following, if true, would best explain the cause of hte situation described above?

A) Automobile drivers are not required by law to carry collision insurance on the cars they drive, but automobile leasing companies require that a driver who leases a car to carry collision insurance.

B) Automobile drivers are not required by law to carry collsion insurance, and collision insurance is extremely expensive.

C) Collision insurance is a sensible purchase only if the automobile it covers is under two years old.

D) Most insurance companies prefer not to issue automobile collision insurance and are slow to pay when a policy holder makes a claim.

E) Many drivers who own their cars would rather risk the cost of repairing their vehicles in the event of an accident than pay for collision insurance.
[Reveal] Spoiler: OA

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Re: All drivers who lease the cars they drive carry automobile [#permalink] New post 25 Jan 2014, 08:40
Hi,
Thanks for the Q.
Why E is wrong?
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Re: All drivers who lease the cars they drive carry automobile [#permalink] New post 25 Jan 2014, 11:35
If you look carefully at the stem, you will notice that we are comparing drivers carrying insurance for leased vehicles and owners not carrying insurance. It doesn't mean that owners do not buy any auto collision insurance.

The correct answer will address the cause behind this. Option A does it correctly and best among other options. Option E says that owners do not purchase but risk cost of repairing,totally digressing from the situation.

Hope this helps. :-)


gs120884 wrote:
Hi,
Thanks for the Q.
Why E is wrong?
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Re: All drivers who lease the cars they drive carry automobile [#permalink] New post 25 Jan 2014, 13:16
mba1382 wrote:
If you look carefully at the stem, you will notice that we are comparing drivers carrying insurance for leased vehicles and owners not carrying insurance. It doesn't mean that owners do not buy any auto collision insurance.

The correct answer will address the cause behind this. Option A does it correctly and best among other options. Option E says that owners do not purchase but risk cost of repairing,totally digressing from the situation.

Hope this helps. :-)


gs120884 wrote:
Hi,
Thanks for the Q.
Why E is wrong?


What....?
What is the difference between "carry" and "buy" in this situation...?
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Re: All drivers who lease the cars they drive carry automobile [#permalink] New post 25 Jan 2014, 21:45
All drivers who lease the cars they drive carry automobile collision insurance, but many who own the cars they drive do not.


A) Automobile drivers are not required by law to carry collision insurance on the cars they drive, but automobile leasing companies require that a driver who leases a car to carry collision insurance.... CORRECT......I HAVE A NUMBER OF CARS BUT I DONT NEED TO INSURE THEM FOR DRIVING THEM SO I DONT... NOW OUT OF THESE I NEED TO LEASE SOME AND FOR THAT I NEED TO INSURE THOSE ......SO I LEASE ALL CARS WITH INSURANCE AND CONTINUE TO DRIVE BALANCE UNINSURED.......EXPLAINS THE DISCREPANCY................ CORRECT
Re: All drivers who lease the cars they drive carry automobile   [#permalink] 25 Jan 2014, 21:45
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