Why is compulsory motor insurance required for a car used on public roads?

Answer and explanation

Correct answer: C. People harmed by the vehicle can be compensated

  1. Step 1: Third-party cover protects victims of road accidents. Step 2. That is why the cover is a legal condition of using the vehicle. Answer: People harmed by the vehicle can be compensated. Why not the others: It lowers the fuel the car consumes on public roads: insurance has no technical effect on the engine. It guarantees that the driver can never be found at fault: insurance pays for damage; it does not decide fault. It replaces the need for a driving licence on short journeys: insurance and licence are separate requirements.

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