SajjadAhmad wrote:
Every driver in the United States is legally required to purchase liability insurance that protects other individuals in the event that the driver causes property damage or bodily injury. Some politicians argue that this insurance is partly responsible for the high rate of automobile collisions, because it reduces the drivers’ financial incentives to operate their automobiles in a safe and responsible manner. If drivers were required to pay directly for any damage they cause, they would drive more carefully.
The politicians’ argument makes which of the following assumptions?
A. If drivers were not required to carry liability insurance, individuals would be unprotected from uninsured drivers with little money to pay for damages they cause.
B. Drivers who cause bodily injury to another feel little or no regret for their actions.
C. Responsible drivers and reckless drivers pay similar premiums for liability insurance.
D. The cost of liability insurance is more than some drivers can afford.
E. Most drivers would purchase liability insurance even if they were not required to do so by law.
warrior1991 wrote:
warrior1991 wrote:
VeritasKarishma GMATNinja Please help as to why A is inccorrect
generis VeritasKarishma Please help .
This question is of very poor quality and highly debatable OA. I am going to tag it as such.
• Breaking down the promptFact 1: All drivers must buy liability insurance to protect OTHER drivers cars and bodies.
Fact 2: Some politicians make an argument against liability insurance.
Opinion 1: Those politicians argue that liability insurance is bad.
They believe that it is partly responsible for the high rate of car crashes. Why do they believe this fact?
→ They argue that
liability insurance REDUCES the DRIVERS’ FINANCIAL INCENTIVES to drive more safely [INTERIM CONCLUSION]
Opinion 2/main conclusion:
If drivers were required to pay directly for damage, drivers would driver more carefully.FINANCIAL INCENTIVE is key. No option is an unstated link to the interim or final conclusion.
Quote:
A. If drivers were not required to carry liability insurance, individuals would be unprotected from uninsured drivers with little money to pay for damages they cause.
This answer cuts both ways. See my analysis below. It starts with a
green bullet point.Supports: Because the people cannot pay, they drive more carefully.
Does not support: Those who cannot pay drive as recklessly as they please because they think, "The authorities cannot make me pay for damages with money I do not have."
Quote:
B. Drivers who cause bodily injury to another feel little or no regret for their actions.
WTH? Oy. Does not support.
If drivers who cause crashes and hurt people feel no regret and
thus drive recklessly,
the politicians reason to themselves, "Perhaps we can incentivize them in a way that has nothing to do with emotions.
We will make everyone pay directly. That hurts
their pocketbook. Now it is in their self-interest to drive more safely.
We can give them a financial incentive in place of the psychological incentive that they
should have but do not."
The problem with B is the highlighted "thus" above.
The politicians want to incentivize the bad drivers financially.
We cannot leap from "feel no emotional regret" to "WILL feel self-interested financial need to avoid expensive crashes."
They could still feel regret and drive recklessly.
Every person I know has felt guilty about something and continued to do the bad behavior anyway.
Who or what says that feeling regret equals a financial incentive to drive more safely? Not one word.
Quote:
C. Responsible drivers and reckless drivers pay similar premiums for liability insurance.
This option is the closest to an answer, but it is not good.
We are not being asked whether the politicians are factually correct.
We are being asked to find an assumption upon which they rely to draw their conclusion.
"Out of scope" does not tell me very much. Why?
Somewhat supports the conclusion: if politicians assume (C) then they
believe that bad drivers right now have NO financial incentive to drive better.
In fact, bad drivers may have a financial advantage right now. They cause crashes and it costs them no more than a person who does not cause crashes.
If bad drivers had to pay out of pocket, that fact might be financial incentive for them to drive more safely because paying for property damage and bodily harm out of pocket is a lot more expensive than paying for liability insurance.
FINANCIAL INCENTIVE is key. This answer is the only one that makes any sense. And it's not very good.
Quote:
D. The cost of liability insurance is more than some drivers can afford.
This answer has no bearing on anything. Bye.
Quote:
E. Most drivers would purchase liability insurance even if they were not required to do so by law.
This assumption is either neutral or hurts the politicians’ argument.
If most drivers would purchase liability insurance anyway, then NOT requiring it by law will have little to no “financial incentive” effect.
warrior1991 , option A cannot be correct. It cuts both ways. I see where you are coming from, though.
• OPTION A cuts both ways. The problem is that we do not know whether the people who cannot pay are conscientious.1. Assume that people with little money are conscientious.
If we focus on the people who cannot pay out of pocket for all that damage, then we could say,
"Well, they know that they cannot pay for car crashes, and now they have no insurance, so they will drive more carefully."
You are right: that line of reasoning is pro-conclusion.
2. Assume that people with little money are not conscientious. Stress is on 'CANNOT PAY."
Now (A) undermines the conclusion.
If I cannot pay, I also cannot be incentivized financially. I simply do not pay.
How am I incentivized to drive more safely? If I get in a crash, they can't make me pay -- I don't have the money.
I drive as recklessly as I please because they cannot make me pay for damages with money I do not have.
I am too poor to be hurt in the pocketbook.
Analogy: lawmakers decide that homeless people are a problem.
The politicians pass a law: if you are homeless, you pay a big fine.
Just one problem. They are homeless. They have no money to pay any fines.
They are beyond being incentivized financially.
3. Assume conscientious people. Revoking the law is unnecessary.
The law is beside the point. It's a dumb argument.
People who cannot pay are likely to buy insurance. The law doesn't matter. There is no need to change the requirement.
If I know that I cannot pay, then I am better off buying insurance whether there IS a law that requires me to do so or not.
I also think that the words in the option are screaming for us to not choose A.
It could be argued that as a matter of policy, option A is a BAD RESULT of what the politicians are concluding, not what they are assuming.
Focus on the sense of danger created: individuals would be unprotected.
What politician in her right mind would argue FOR (1) unprotected people who (2) cannot get compensated?
Option A would be a bad result of the politicians' policy—they cannot be assuming that it is better for people to be unprotected.
The negation test sort of works, I grant you that much.
If drivers WERE required to carry liability insurance, individuals WOULD be protected from uninsured drivers with little money to pay for damages they cause.
But I can make the negation test work for B and C. Now what?
I know how hard it is to find good questions.
But I cannot support this question. At all.
This question is not worth worrying about.