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Drivers involved in a collision must show proof of their ability to pay for any damages.... true or false?

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Final answer:

Drivers must show proof of their ability to pay for damages typically via auto insurance, which collects premiums from many to cover accident costs.

Step-by-step explanation:

It is true that drivers involved in a collision must show proof of their ability to pay for any damages. This is usually done by providing auto insurance information, as car damage can become quite expensive. Without insurance, individuals bear the full financial responsibility for any damage they cause. The principle of insurance is based on the notion that a group of people pay premiums to create a pool of money that can be used to cover the costs of accidents.

For instance, with 100 drivers contributing a premium of $1,860 each year, an insurance company would accumulate $186,000, which would be used to cover the expenses of damages incurred by accidents within that group.

User Mike Rhodes
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