Final answer:
This question is about the requirement for all vehicles on Illinois Road to have liability insurance coverage. Drivers must pay a premium to an insurance company to ensure that there are funds available to cover the costs of accidents. The subject of this question is Law.
Step-by-step explanation:
The subject of this question is Law. The question pertains to the requirement for all vehicles operating on Illinois Road to be covered by a liability insurance policy. This falls within the realm of laws and regulations governing motor vehicles and insurance. In this case, liability insurance is mandated to protect drivers and individuals in case of accidents.
In Illinois, like in many other states, it is a legal requirement for all vehicles to have liability insurance coverage. Liability insurance helps in covering the costs associated with accidents, such as medical expenses and property damage, in order to protect all parties involved. This requirement ensures that drivers take responsibility for any damages they may cause.
By mandating liability insurance for all vehicles, Illinois ensures that there is financial protection for those involved in accidents. In this particular scenario, the insurance company is collecting $186,000 to cover the costs of accidents that occur. Each driver pays a $1,860 premium annually, resulting in the necessary funds being collected to cover these costs.