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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]

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14 Jul 2013, 11:13
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Question Stats:

76% (02:12) correct 24% (01:19) wrong based on 279 sessions

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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]

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25 Jan 2014, 09:40
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]

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25 Jan 2014, 12:35
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]

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25 Jan 2014, 14:16
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]

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25 Jan 2014, 22:45
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
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Re: All drivers who lease the cars they drive carry automobile [#permalink]

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19 Jun 2016, 05:10
Hello from the GMAT Club VerbalBot!

Thanks to another GMAT Club member, I have just discovered this valuable topic, yet it had no discussion for over a year. I am now bumping it up - doing my job. I think you may find it valuable (esp those replies with Kudos).

Want to see all other topics I dig out? Follow me (click follow button on profile). You will receive a summary of all topics I bump in your profile area as well as via email.
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Re: All drivers who lease the cars they drive carry automobile [#permalink]

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24 Jun 2016, 04:57
Prethinking

What should be the reason for the below situation
driver with leased car - Insurance
driver with owned car - No Insurance

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.
-- Automobile --- they drive --> will result in no driver to carry the insurance,
Just because of the second condition Driver must have to have Insurance to drive leased car

B) Automobile drivers are not required by law to carry collsion insurance, and collision insurance is extremely expensive.
-- This is talking about all the drivers. not distinguishing between owned car drivers and leased car driver

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

D) Most insurance companies prefer not to issue automobile collision insurance and are slow to pay when a policy holder makes a claim.
-- Again does not provide any reasoning to the argument

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.
-- This can be true for leased car drivers as well
Re: All drivers who lease the cars they drive carry automobile   [#permalink] 24 Jun 2016, 04:57
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