Module 10 2009
- 1. Mod 10Mod 10 Financial Responsibility Buying a Used Vehicle Costs of Owning a Vehicle Trip Planning
- 2. Financial Responsibility LawFinancial Responsibility Law $ Minimum liability coverageMinimum liability coverage $ $500 Uninsured mot$500 Uninsured motorist feeorist fee
- 3. Required Minimum Liability Coverage in VARequired Minimum Liability Coverage in VA $25,000 for bodily injury / death one person$25,000 for bodily injury / death one person Up to $50,000 for bodily injury / death two orUp to $50,000 for bodily injury / death two or more personsmore persons $20,000 for property damage$20,000 for property damage Virginia Auto InsuranceVirginia Auto Insurance
- 4. You must show Proof ofYou must show Proof of Financial ResponsibilityFinancial Responsibility when you:when you: Virginia Auto InsuranceVirginia Auto Insurance are asked for it by a police officer;are asked for it by a police officer; have a collision; orhave a collision; or register your vehicle or renew its plates.register your vehicle or renew its plates.
- 5. Virginia Auto InsuranceVirginia Auto Insurance Facts on the Declaration Page of Your PolicyFacts on the Declaration Page of Your Policy The exact name of your insurance companyThe exact name of your insurance company The policy numberThe policy number Your coverage and how much it costsYour coverage and how much it costs Your deductibles, if anyYour deductibles, if any The vehicles insured on the policy, their vehicleThe vehicles insured on the policy, their vehicle identification numbers and their classificationsidentification numbers and their classifications for rating purposesfor rating purposes
- 6. Virginia Auto InsuranceVirginia Auto Insurance Penalties for Driving without Proof ofPenalties for Driving without Proof of Financial ResponsibilityFinancial Responsibility $500 fine$500 fine Suspension of your driver’sSuspension of your driver’s licenselicense Suspension of your vehicleSuspension of your vehicle registrationregistration Higher insurance premiumsHigher insurance premiums for the next 3 years (SR-22)for the next 3 years (SR-22) If you caused the crash, youIf you caused the crash, you are responsible for otherare responsible for other people’s lossespeople’s losses Suspended Suspended
- 7. Liability CoverageLiability Coverage Pays:Pays: Other people’s medicalOther people’s medical expensesexpenses Other people’s auto repairsOther people’s auto repairs Property damageProperty damage Covers:Covers: YouYou Your familyYour family Others driving with yourOthers driving with your permissionpermission Required?Required? Yes, required by Virginia lawYes, required by Virginia law
- 8. Collision CoverageCollision Coverage Pays:Pays: Your car repair Your car replacement Covers:Covers: Your car Regardless of driver or who was at fault Required?Required? Not by Virginia law, but often required by the finance company that loaned you the money to buy the car
- 9. Comprehensive CoverageComprehensive Coverage Pays:Pays: Car repair or replacement after: fire hailstorm theft or other non-collision event rental car after theft Covers:Covers: Actual cash value of your car Required?Required? Not by Virginia law, but often required by car finance companies
- 10. Insurance CostsInsurance Costs Factors used to determine your premium:Factors used to determine your premium: Type of CarType of Car Highest for luxury, high-performance, and sports cars Higher for cars that damage easily Higher for cars that cost more to repair Collision and comprehensive ratesCollision and comprehensive rates How you use your car Higher for cars driven a lot of miles and used for school, work or business Your Age, Marital Status, Driving Record, and Grades Highest RatesHighest Rates Male drivers under 25 Unmarried women under 21 Where you live and drive Urban counties have more crashes and auto thefts so rates tend to be higher than those in rural areas
- 11. Losing Your InsuranceLosing Your Insurance CancellationCancellation First 60 days, company can cancel for any reason, including a ticket or a collision After policy is in effect more than 60 days, can cancel but: - must give 30 days' notice before canceling - Must refund unearned premium Note: Cancellation for non-payment is effective immediately. Non-renewalNon-renewal Company will not offer a new contract Request Reasons in WritingRequest Reasons in Writing Why company canceled the policy Why company will not renew the policy CANCELEDCANCELED CANCELED
- 12. After the CollisionAfter the Collision Involved in a CrashInvolved in a Crash Stop as close to the scene as possible Check for injuries - make sure your passengers and those in the other vehicle(s) are OK • if anyone is injured or killed contact police immediately • if no one is injured and your vehicle can be moved, move it from blocking the traffic flow Notify police Warn oncoming traffic Exchange information • provide insurance information • obtain information from others involved and witnesses Notify your insurance company as soon as possible
- 13. After the CollisionAfter the Collision What should you do whenWhat should you do when you are involved in ayou are involved in a crash and have a claim?crash and have a claim? If the company rejects your claim or pays only part of it, you should be given an explanation for that decision. Notify your insurance company promptly Your agent can help you file the claim correctly and completely fill out any forms needed to verify your claim Keep a copy of the forms for your records
- 14. Vehicle Price FormulaVehicle Price Formula Purchase Price x Interest Rate x Length of FinancePurchase Price x Interest Rate x Length of Finance Purchase Price -Purchase Price - $10,000$10,000 Interest Rate -Interest Rate - 8 percent8 percent Length of FinanceLength of Finance -- 24 months24 months Purchase Price + Sales Taxes + InterestPurchase Price + Sales Taxes + Interest = Total Price Approximately 11,592.00= Total Price Approximately 11,592.00 Your Monthly PaymentYour Monthly Payment What is your monthly payment?What is your monthly payment?
- 15. Vehicle Price Monthly Payment FormulaVehicle Price Monthly Payment Formula Your Monthly PaymentYour Monthly Payment Price + taxes + interest # of months = Monthly payment Cost of Vehicle $10,000.00Cost of Vehicle $10,000.00 3.5% Titling Tax3.5% Titling Tax 8% Interest on Loan (based on unpaid balance)8% Interest on Loan (based on unpaid balance) Loan is over 24 Months.Loan is over 24 Months. $10,000.00 +$350.00 +$1200.00* 24 = $481.25$481.25 *1st year interest = $10,000 x .08 = $800 *2nd year interest = $5,000 x .08 = $400
- 16. Lodging (hotel/motel)Lodging (hotel/motel) MealsMeals TollsTolls Possible RepairsPossible Repairs FuelFuel Calculating Fuel CostsCalculating Fuel Costs Trip CostsTrip Costs - 1500 mile trip- 1500 mile trip - Car gets 22 mpg- Car gets 22 mpg - Fuel costs $1.60 per gallon- Fuel costs $1.60 per gallon Formula: 1500 x $1.60 = $109.09 22
- 17. City MapsCity Maps North orientation Legend (explains the markings and symbols on the map) Street Index – Letters/numbers reference location Determining Distances – Map scale Map ReadingMap Reading RICHMOND
- 18. Map ReadingMap Reading State Maps North orientation Legend (explains the markings and symbols on the map) Town/City index Coordinates – Letters/numbers reference location Maps of major cities Determining distances – Map scale • Mileage chart