Final answer:
Failure to carry insurance verification can result in the suspension of your driver's license. Insurance companies use risk groups to determine premiums, and not showing proof of insurance can lead to legal consequences and higher costs for law-abiding drivers. Hence, option (b) is correct.
Step-by-step explanation:
Failure to carry insurance verification can result in suspension of your driver's license. The consequences of not having proof of insurance when required include legal penalties that can affect your driving privileges.
Insurance companies classify drivers into risk groups and charge lower premiums to those with lower risks. However, if insurance companies have to raise premiums to cover high-risk losses, it can discourage low to medium-risk individuals from maintaining insurance, potentially leading to higher overall costs for those who do carry insurance.
Additionally, car insurance is crucial as it protects drivers from large out-of-pocket expenses in case of an accident and is often a legal requirement.