Final answer:
It is false that liability insurance can only be purchased if someone has fewer than 4 points on their driving record; various factors, including driving history, are considered in insurance rate determination.
Step-by-step explanation:
The statement that liability insurance can only be purchased by people who have fewer than 4 points on their driving record is False. Anyone can purchase liability insurance, but the cost and terms may vary based on the driver's record and risk profile. Insurance companies use driving records as one way to classify drivers into risk groups, which can affect premiums. A high number of points on a driving record typically indicates a history of violations and may lead to higher insurance rates. However, there are no universal rules that entirely prevent drivers with more than a certain number of points from obtaining insurance.
When someone is purchasing car insurance, they may understand their own driving habits and risks better than an insurance company, which faces the challenge of collecting detailed information on how individuals drive. Moreover, age, driving history, vehicle safety ratings, and the vehicle's history are factors that influence insurance rates.