Question

Alan's car is worth less than a year's worth of auto insurance premiums. Why should Alan still get auto insurance? Select the best answer from the choices provided. to make money when he has an accident because auto insurance is optional in his state of residence because Alan may need to be insured against liability from traffic accidents to invest in the purchase of his next car

Answer 1

He may need to be insured against liability from traffic accidents, because if he slides on ice and hits someone, the person he hits can make him pay for the damage. 

Answer 2

2nd option, you don't make or earn money with insurance policies, hence the name assurance.
You will need liability such as bodily insurance and total damage reparations.