Final answer:
The consequence for causing a crash while uninsured is that you may have to pay for damages before driving privileges are reinstated. Insurance is crucial for financial protection, pooling premiums to cover accident costs.Option c is the correct answer.
Step-by-step explanation:
If you are the driver or owner of a vehicle which is in a crash that is your fault, and you are not insured in compliance with the financial responsibility law, the correct consequence is that you may be required to pay for the damages before your driving privilege is reinstated. This scenario emphasizes the importance of automobile insurance, as it protects drivers financially in case of an accident.
Using the provided example, if each of the 100 drivers pays a $1,860 premium each year, the insurance company will collect the $186,000 needed to cover the costs of the accidents.
In this example, accidents vary from minor dings costing $100 each to large accidents costing up to $15,000, demonstrating how premiums are calculated based on the risks and damages covered.