6
QuizMultiple Choice

Insurance Decisions and Risk Management — Quiz

Question 6 • Personal Finance

Why do most states require auto insurance?

Answer
A
protect drivers financially
B
limit car ownership
C
reduce accidents
D
increase taxes

Explanation

Most states require auto insurance so drivers can cover costs if they cause a crash, including damage to other people’s property or injuries. This helps protect drivers financially from potentially large expenses. The correct choice is A, “protect drivers financially.”

AI-written and checked against the verified answer.

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