In a troubled economy, experienced drivers with no moving violations are more likely to lose their cars due to failure to make car payments, than due to accidents in which the vehicle is totaled. Despite this, most banks and finance companies require borrowers to have collision insurance, although they do not require insurance against disability or loss of employment.

Which of the following, if true, best explains the banks' insurance requirements?

(A) Insuring against accidents is generally more expensive than insuring against disability or loss of employment.

(B) Many people don't like to consider the possibility that they may lose their jobs.

(C) Loss of employment or disability of the driver does not affect the value of a vehicle to a bank or finance company.

(D) Some people are more sympathetic to a driver who loses his car due to an accident than to one who loses it due to failure to make payments.

(E) Most employers do not insure their employees against a temporary loss of income due to injuries from a car accident.


OA C

Source: Princeton Review