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# For similar cars and drivers, automobile insurance for

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Intern
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For similar cars and drivers, automobile insurance for [#permalink]

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07 Dec 2003, 07:27
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Difficulty:

25% (medium)

Question Stats:

72% (02:13) correct 28% (01:30) wrong based on 274 sessions

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For similar cars and drivers, automobile insurance for collision damage has always cost more in Greatport than in Fairmont. Police studies, however, show that cars owned by Greatport residents are, on average, slightly less likely to be involved in a collision than cars in Fairmont. Clearly, therefore, insurance companies are making a greater profit on collision-damage insurance in Greatport than in Fairmont.
Which of the following is an assumption on which the argument depends?

A. Repairing typical collision damage does not cost more in Greatport than in Fairmont.
B. There are no more motorists in Greatport than in Fairmont.
C. Greatport residents who have been in a collision are more likely to report it to their insurance company than Fairmont residents are.
D. Fairmont and Greatport are the cities with the highest collision-damage insurance rates.
E. The insurance companies were already aware of the difference in the likelihood of collisions before the publication of the police reports.
[Reveal] Spoiler: OA

Last edited by JarvisR on 10 Jul 2015, 21:32, edited 1 time in total.
OA updated
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Re: For similar cars and drivers, automobile insurance for [#permalink]

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07 Dec 2003, 08:25
Only possibility that an insurance company, which has higher taxes in a city where its residents are, on average, slightly less likely to be involved in a collision than residents from other city is making less profit is that mentioned company spends more money on repairing damage. In stimulus , the conclusion is different...so then - A
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Re: For similar cars and drivers, automobile insurance for [#permalink]

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07 Dec 2003, 08:26
I vote for A.

If it were true that in Greatport it costs more to get your car repaired then charging more in insurance would make sense. But because the author assumes that it does not cost more, hence he concludes that ....

I don't think I have explained properly. Official ans?
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Re: For similar cars and drivers, automobile insurance for [#permalink]

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07 Dec 2003, 08:27
Note the time difference between Zeka's and my posting
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Re: For similar cars and drivers, automobile insurance for [#permalink]

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07 Dec 2003, 10:17
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Re: For similar cars and drivers, automobile insurance for [#permalink]

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07 Dec 2003, 15:24

Thanks for the explanation
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Re: For similar cars and drivers, automobile insurance for [#permalink]

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09 Dec 2003, 02:21
immediately got A; it perfectly coroborates the given conclusion.
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Re: For similar cars and drivers, automobile insurance for [#permalink]

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08 Apr 2016, 04:47
I would go with option A as the correct option.
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Re: For similar cars and drivers, automobile insurance for [#permalink]

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14 Apr 2016, 03:24
I go with A.
Since, The argument states that:
Insurance costs = G > F and # Collisions = F > G.
Therefore author might have assumed that Collision cost are less in G. Since, there is a possibility that, the collisions cost can be higher even if the # of collisions are less. So definitely the answer should be in that terms for the authors conclusion to be true.
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Re: For similar cars and drivers, automobile insurance for [#permalink]

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06 Sep 2016, 06:43
joinraveesh wrote:
For similar cars and drivers, automobile insurance for collision damage has always cost more in Greatport than in Fairmont. Police studies, however, show that cars owned by Greatport residents are, on average, slightly less likely to be involved in a collision than cars in Fairmont. Clearly, therefore, insurance companies are making a greater profit on collision-damage insurance in Greatport than in Fairmont.
Which of the following is an assumption on which the argument depends?

A. Repairing typical collision damage does not cost more in Greatport than in Fairmont.
B. There are no more motorists in Greatport than in Fairmont.
C. Greatport residents who have been in a collision are more likely to report it to their insurance company than Fairmont residents are.
D. Fairmont and Greatport are the cities with the highest collision-damage insurance rates.
E. The insurance companies were already aware of the difference in the likelihood of collisions before the publication of the police reports.

For all those picking C, Reporting to the Insurance Company is different from Claiming the Insurance.
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Re: For similar cars and drivers, automobile insurance for   [#permalink] 06 Sep 2016, 06:43
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