Section 1(Day 5)

Virginia Driver Responsibilities:

Licensing Responsibilities

Bell Ringer

Some people prefer to eat at food stands or restaurants. Other people prefer to prepare and eat food at home. Which do you prefer and why? Support your opinion by using specific reasons and details.

Write a half page red to red. Save these to be turned in with your test!

Worth 10% of your grade.

Reminder

1.1. Bring paper/pen/pencil and notebookBring paper/pen/pencil and notebook

2.2. Electronics are for instructional use with permission Electronics are for instructional use with permission

3.3. Don’t forget to do daily quizzes on QUIA.COMDon’t forget to do daily quizzes on QUIA.COM

4.4. No Excuses why you don’t take Quizzes 1-6 No Excuses why you don’t take Quizzes 1-6

before test day!! (Quizzes are worth 30% of grade)before test day!! (Quizzes are worth 30% of grade)5.5. Attendance is MANDATORY!! (NO SLEEPING in class)Attendance is MANDATORY!! (NO SLEEPING in class)

6.6. All notes can be found on Harrisonburg’s staff website:All notes can be found on Harrisonburg’s staff website:

http://staff.harrisonburg.k12.va.us/~tbutler/http://staff.harrisonburg.k12.va.us/~tbutler/

7.7. If you are NOT taking notes in class, please be quiet and If you are NOT taking notes in class, please be quiet and ask to use the restroom at the end of class.ask to use the restroom at the end of class.

Day 5 Objectives

• The students will understand the importance of having The students will understand the importance of having auto insurance when operating a motor vehicle.auto insurance when operating a motor vehicle.

• The students will learn the different type of auto The students will learn the different type of auto insurance coverages.insurance coverages.

• The students will understand the characteristics of an The students will understand the characteristics of an insurance policy including prices, cost, and premium insurance policy including prices, cost, and premium differences.differences.

Related SOL: DE.Related SOL: DE.1919

This is what you are trying to get at the end of class..This is what you are trying to get at the end of class..

Harrisonburg High School

H.C.P.S

36

x

03/06/2012

Your Name Here

“Green Card”

Insurance

What is auto insurance?

Auto insurance protects you against financial loss if you have an accident.

You agree to pay the premium and the insurance company agrees to pay your losses as defined in your policy.

Insuring a CarInsuring a Car

VA Law requires you to VA Law requires you to provide proof of financial provide proof of financial responsibilityresponsibility

Your parents’ policy covers Your parents’ policy covers you while you have a learner’s you while you have a learner’s permitpermit

7 Types of Coverages7 Types of Coverages

1- Liability Coverage1- Liability Coverage

Pays:Pays: Other people’s medical Other people’s medical

expenses expenses Other people’s auto repairsOther people’s auto repairs Property damageProperty damage

Covers:Covers: YouYou Your family Your family Others driving with your Others driving with your

permissionpermission

Required?Required? Yes, required by Virginia lawYes, required by Virginia law

2- Medical Payments Coverage2- Medical Payments Coverage

Pays:Pays: Medical expensesMedical expenses Funeral expensesFuneral expenses

Covers:Covers: YouYou

Your family Your family

Your passengersYour passengers

Required?Required? Not required by Virginia lawNot required by Virginia law

3- Uninsured/Underinsured 3- Uninsured/Underinsured Motorist (UM/UIM) CoverageMotorist (UM/UIM) Coverage

Pays:Pays: Medical expenses Funeral expenses Car repairs Car rental Replacement of damaged contents

Covers:Covers: You (if hit by an uninsured/underinsured

or hit-and-run motorist)

Required?Required? Not by Virginia law, but company must offer

4- Collision Coverage4- Collision 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

5- Comprehensive Coverage5- Comprehensive Coverage

Pays:Pays:

Car repair or replacement after: fire hailstorm theft or other non-collision event

Covers:Covers: Actual cash value of your car

Required?Required? Not by Virginia law, but often required by

car finance companies

6- Towing and Labor Coverage6- Towing and Labor Coverage

Pays:Pays: Towing Towing On site labor charges such as On site labor charges such as

changing a tire changing a tire When your car is disabledWhen your car is disabled

Covers:Covers: Your carYour car

Required?Required? Not required by Virginia lawNot required by Virginia law

7- Rental Reimbursement Coverage7- Rental Reimbursement Coverage

Pays:Pays: A rental car

after a crashafter comprehensive losses

Covers:Covers: You and Your family

Required?Required?

Not required by Virginia law

Car Rental Company

How much Insurance How much Insurance should you have?should you have?

At a minimum, your insurance must provide the following: $25,000 for injury or

death of one person $50,000 for injury of

two or more people; and

$20,000 for property damage.

Do you think minimuminsurance will cover this?

Do You Need Insurance?Do You Need Insurance?

If your vehicle is not insured, you must pay a $500.00 uninsured motor vehicle fee.

This does not provide insurance, but allows you to register and operate a vehicle in VA. For 1 year.

You must show Proof of You must show Proof of

Financial Responsibility Financial 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.

Penalties for Driving without InsurancePenalties for Driving without Insurance

$500 fine$500 fine

Suspension of your driver’s Suspension of your driver’s licenselicense

Suspension of your vehicle Suspension of your vehicle registrationregistration

Higher insurance premiums Higher insurance premiums for the next 3 yearsfor the next 3 years

If you caused the crash, you If you caused the crash, you are responsible for other are responsible for other people’s lossespeople’s losses

Suspended

Suspended

Insurance CostsInsurance Costs

How are car insurance ratesHow are car insurance rates

determined?determined?

Factors used to determine your premium:Factors used to determine your premium:

Your Age, Marital Status, Driving Record, and Grades

Highest RatesHighest RatesMale drivers under 25Unmarried women under 21

Factors used to determine your premium:Factors used to determine your premium:

Type of CarType of Car

Highest for luxury, high-performance, and sports carsHigher for cars that damage easilyHigher for cars that cost more to repair

Collision and comprehensive ratesCollision and comprehensive rates

How you use your carHigher for cars driven a lot of miles and used for school, work or business

Where you live and drive

Urban counties have more crashes and auto thefts so rates tend to be higher than those in rural areas

Factors used to determine your premium:Factors used to determine your premium:

Your DeductiblesYour Deductibles

Your share of the cost of a collision or comprehensive claim

You can reduce your premium by raising your deductibles

SurchargesSurcharges

Penalties added for accidents and certain traffic violations

DiscountsDiscounts

Some are required by the state, while others are incentives offered by insurance companies

Education and Car Equipment Education and Car Equipment SavingsSavings

NOTE: SOME insurance companies offer the following discounts

Auto Insurance DiscountAuto Insurance Discount SavingsSavings

Defensive driving coursesDefensive driving courses Percent offPercent off Liability, Collision, and Medical Payments

Airbags and other passive Airbags and other passive restraintsrestraints

Percent offPercent off Medical Payments and Bodily Injury

Drug / alcohol educationDrug / alcohol education Percent offPercent off Liability, Collision, Medical Payments, and Bodily Injury

Anti-theft devicesAnti-theft devices May Reduce Comprehensive premium;May Reduce Comprehensive premium; amount varies by device and county

Two or more cars on a policyTwo or more cars on a policy May reduce May reduce Liability, Medical Payments Liability, Medical Payments and Collision Insurance costsand Collision Insurance costs

Do Not Write this Slide!

Some companies may give discounts for:Some companies may give discounts for:

•Your ageYour age •Annual mileage drivenAnnual mileage driven•No claimsNo claims•Good driving recordGood driving record•Good grades "B" or 3.0 gpaGood grades "B" or 3.0 gpa

Paying for InsurancePaying for Insurance

Many people can’t afford to pay their car insurance premium in one installment

Insurance companies must offer installment plans

Installment Plan

Number of Months _____

Interest Rate _____%

________________________Client

________________________Company Representative

Installm

ent Plan

Paying for InsurancePaying for Insurance

How much is the down payment? How much is my monthly payment? How many payments do I make? How much is my total payment? (annual or six-month premium plus interest )

Do Not Write this SlideDo Not Write this Slide

CancellationCancellation of your Insurance of your Insurance

First 60 days, company can cancel for any reason, including a ticket or a collisionAfter policy is in effect more than 60 days, can cancel but:

- must give 10 days' notice before canceling

- Must refund unearned premiumNote: Cancellation for non-payment is effective immediately. CANCELEDCANCELED

CANCELED

Class Work In your driver’s education book, read pages

17-18 “The value of taking a driver education course” and then answer questions 1+2 in your notebook.

Save these to be turned in with your test.

Section (Day 5)

The End!!