100. Tom purchases a new car from his local car dealer. He also decides to get insurance coverage that will pay to repair the car if he were to get into an accident. This is because Tom wants to protect:
Answer: C
Tom wants to protect his own financial interest in the car.
By obtaining insurance coverage to repair his car in case of an accident, Tom is primarily focused on safeguarding his own investment and financial interest in the vehicle.
A) his insurance company's profit margins.
This option is incorrect because Tom's decision to purchase insurance is not motivated by the profit margins of the insurance company. Instead, he is concerned with protecting his own financial stake in the car.
B) other drivers on the road.
This option is also incorrect. While insurance may indirectly benefit other drivers by ensuring that responsible drivers can cover damages, Tom's primary motivation for getting insurance is to protect his own interests rather than the interests of others.
C) his own financial interest in the car.
This option is correct as Tom's decision to acquire insurance coverage directly relates to protecting his financial investment in the car. In the event of an accident, the insurance would help cover repair costs, thereby mitigating his potential financial loss.
D) any passengers who ride in his car.
This option is incorrect because although insurance can provide some level of protection for passengers, Tom's main concern, as indicated in the scenario, is to ensure that he is financially protected concerning his own car.
Conclusion
Tom's choice to purchase insurance is clearly aimed at protecting his own financial interest in the car, as evidenced by his desire for coverage against repair costs following an accident. The other options do not accurately reflect his motivations, which center on safeguarding his investment rather than addressing the needs of others or the insurance company's profit.