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Proof of financial responsibility must be maintained by: A. A driver involved in a fatal collision B. Only law enforcement C. All drivers D. Drivers 18 years of age or younger

Question

Proof of financial responsibility must be maintained by: A. A driver involved in a fatal collision B. Only law enforcement C. All drivers D. Drivers 18 years of age or younger

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Solution

The correct answer is C. All drivers. Every driver, regardless of age or driving history, is required to show proof of financial responsibility. This is typically done through carrying auto insurance, which can cover costs associated with a car accident. This rule is not only applicable to drivers involved in fatal collisions or drivers who are 18 years or younger, but to all drivers.

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Drivers in the age group 17-19 comprise 1.5% of all drivers; however, 12% of all collisions involve young drivers in this age category. The RAC Foundation wants a graduated licensing system with a 1-year probationary period with restrictions on what new drivers can do on roads. Additionally, driving instructors need to emphasise the dangers of driving too fast and driving tests should be designed to make new drivers more focused on noticing potential hazards. These changes are essential and could stop 4,500 injuries on an annual basis. What is the assumption of the above argument? A) Young drivers are more likely to have more passengers than other age groups. B) Young drivers spend more hours driving than older drivers. C) Young drivers are responsible for the collisions. D) The cars that young people drive are unsafe. E) Most young drivers involved in accidents are male.

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Which of the following is essential for protecting people’s finances from large expenses or loss of income?InsuranceSavings accountsMutual fundsFixed deposits

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