MODULE 10 – Sections 1 & 2

OBJECTIVES: Students will learn about insurance coverage and techniques for purchasing vehicles

Topics covered are:— Insuring Vehicles—learn about the financial

responsibility for owning and driving a vehicle

— Purchasing Vehicles—learn to analyze data and utilize problem solving techniques when purchasing a vehicle

Insuring VehicleOnce you have graduated to having a driver’s license and are no longer required to have adult supervision, a driver in North Carolina must purchase vehicle insurance for:—Their own protection—The protection of other persons—The protection of property

As long as you have a driver’s license and operate your own vehicle, you are responsible for the maintenance and upkeep of that vehicle as well as any damage you cause when driving the vehicleInsurance rates are affected by the age of driver, driving record, and type of vehicle

Financial Responsibility RequirementsThe Vehicle Responsibility Act requires that all

motor vehicles registered in North Carolina must be covered by an automobile liability insurance policy and must remain in effect with continuous coverage until the registration is terminated

–Liability Insurance—pays for the costs of a crash that you caused –Collision Insurance—pays for the replacement or repair of YOUR vehicle following a crash in which you are at fault–Comprehensive Insurance—car repair or replacement after fire, hailstorm, theft, or other non-collision events

A $100 deductible means you must pay the first $100 towards repairs to your car

North Carolina’s minimum liability coverage provides—30,000 for bodily injury/death of one person—60,000 for bodily injury/death of two or more

persons—25,000 for property damage

After the policy is in effect more than 60 days, a company can cancel for the following reasons, but must give 10 days notice before canceling, and refund the unused portion of the premium—Failure to pay premium—Filing a fraudulent claim—Driver’s license is suspended or revoked

Financial Responsibility Requirements

Insurance CostsIt is unlawful for an insurance company to discriminate and refuse to renew a policy for:—Age, sex, residence, race, national origin, marital

status—Lack of driving experience or number of years

driving—Lack of supporting business such as homeowner’s

policy—One or more violations or crashes that occurred

more than 48 months before the policy’s upcoming anniversary date

—One of more claims filed under the comprehensive coverage or towing coverage

Insurance premiums may be reduced by the following:– Good grades– If you drive less than 7500 miles per year

After the Collision

When involved in a crash, you should get names, addresses, registration numbers, and insurance information from everyone involved in the collisionIt is always a good idea to call the police if you are involved in a crash and notify your insurance company promptly―The law protects persons who stop and render aid at

the scene of an accident from civil liability except for intentional wrongdoing or unruly conduct

It is unlawful for an insurance company to raise your premiums if you are involved in a collision that was not your fault

Purchasing a VehicleNew vehicles are often too expensive for young drivers—buying a used car is the option most young drivers chooseWhen buying a new car, you do not always have to pay the sticker price, compare and shop around for the best financing deal― Invoice price of a new car is the manufacturer’s

initial charge to the dealer―Base price is the cost of the car without options,

but should include standard equipment and factory warranty

―Sticker price shows the base price, manufacturer’s installed options, transportation charges, and fuel economy

―Dealer sticker price is the price the dealer would like to get for the vehicle—dealers are more likely to go lower in price on a car when you don’t mention a trade in when you start negotiating—know what your old car is worth

Whether buying from a used car dealer or private owner, always inspect the vehicle thoroughly and recognize that the cost may be less; however, it is also more risky than buying a new vehicle―A fresh coat of paint on a used vehicle does not

indicate that the vehicle is in good condition― If you are meeting with a private party to look at a

vehicle, try to get there 15 to 20 minutes early—you may discover the vehicle being prepared for your visit

―Try to get the seller to set a time for you to see the vehicle when it has been sitting overnight—this will let you see how it will start first thing in the morning

―Don’t be afraid to ask the seller to help or to show you something

―At some point during a test drive, try to drive at 20 to 30 mph beside a pavement line to check alignment

Purchasing a Vehicle