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Virginia Virginia Virginia Virginia Department of Education

Department of Education

Module Ten Transparencies Module Ten Transparencies Driver Responsibilities: Driver Responsibilities: Making Informed Choices Making Informed Choices

Topic 1 Topic 1 --

• - Insuring Vehicle

Insuring Vehicle Topic 2 Topic 2 --

• - Purchasing Vehicle

Purchasing Vehicle Topic 3 Topic 3 --

• - Trip Planning

Trip Planning Topic 4 Topic 4 – – Virginia Virginia’s ’s Conservation Concerns Conservation Concerns

Provided in cooperation with the Virginia Department of Motor Ve Provided in cooperation with the Virginia Department of Motor Vehicles hicles

Ownership Responsibilities Ownership Responsibilities

• Insurance Costs

Insurance Costs

• Purchase and Financing Costs

Purchase and Financing Costs

• Maintenance and Operating Costs

Maintenance and Operating Costs

• Registration and Inspection Costs

Registration and Inspection Costs

T – 10.1

Topic 1 Lesson 1

Costs:

Insuring a Car Insuring a Car

• VA Law requires you to

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

T – 10.2

Topic 1 Lesson 1

• If you still owe money on

If you still owe money on your car, your lender your car, your lender may require collision may require collision insurance insurance

• Your parents’ policy covers

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

Financial Responsibility Law Financial Responsibility Law

$ $ Minimum liability coverage

Minimum liability coverage

$ $ Alternatives to insurance coverage

Alternatives to insurance coverage

$ $ Types of proof of financial responsibility

Types of proof of financial responsibility

$ $ When you must show proof of financial responsibility

When you must show proof of financial responsibility

$ $ Penalties for driving without insurance

Penalties for driving without insurance

T – 10.3

Topic 1 Lesson 2

Required Minimum Liability Coverage in VA Required 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 or

Up to $50,000 for bodily injury / death two or more persons more persons

• $20,000 for property damage

$20,000 for property damage

Virginia Auto Insurance Virginia Auto Insurance

T – 10.4

Topic 1 Lesson 2

You must show Proof of You must show Proof of Financial Responsibility Financial Responsibility when you: when you:

Virginia Auto Insurance Virginia Auto Insurance

T – 10.5

Topic 1 Lesson 2

• are asked for it by a police officer;

are asked for it by a police officer;

• have a collision; or

have a collision; or

• register your vehicle or renew its plates.

register your vehicle or renew its plates.

Virginia Auto Insurance Virginia Auto Insurance

Penalties for Driving without Proof of Penalties for Driving without Proof of Financial Responsibility Financial Responsibility

• $500 fine

$500 fine

• Suspension of your driver’s

Suspension of your driver’s license license

• Suspension of your vehicle

Suspension of your vehicle registration registration

• Higher insurance premiums

Higher insurance premiums for the next 3 years (SR for the next 3 years (SR-

• 22)

22)

• If you caused the crash, you

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

T – 10.6

Suspended Suspended

Topic 1 Lesson 2

Virginia Auto Insurance Virginia Auto Insurance

Facts on the Declaration Page of Your Policy Facts on the Declaration Page of Your Policy

T – 10.7

Topic 1 Lesson 3

• The exact name of your insurance company

The exact name of your insurance company

• The policy number

The policy number

• Your coverage and how much it costs

Your coverage and how much it costs

• Your deductibles, if any

Your deductibles, if any

• The vehicles insured on the policy, their vehicle

The vehicles insured on the policy, their vehicle identification numbers and their classifications identification numbers and their classifications for rating purposes for rating purposes

Virginia Personal Auto Policy Virginia Personal Auto Policy

Seven Types of Coverage Seven Types of Coverage

• Liability

Liability

• Medical Payments

Medical Payments

• Uninsured/Underinsured Motorist

Uninsured/Underinsured Motorist

• Collision

Collision

• Comprehensive

Comprehensive

• Towing and Labor

Towing and Labor

• Rental Reimbursement

Rental Reimbursement

T – 10.8

Topic 1 Lesson 3

Liability Coverage Liability Coverage

Pays: Pays:

• Other people’s medical

Other people’s medical expenses expenses

• Other people’s auto repairs

Other people’s auto repairs

• Property damage

Property damage

Covers: Covers:

• You

You

• Your family

Your family

• Others driving with your

Others driving with your permission permission

Required? Required?

• Yes, required by Virginia law

Yes, required by Virginia law

T – 10.9

Topic 1 Lesson 4

Medical Payments Coverage Medical Payments Coverage

Pays: Pays:

• Medical expenses

Medical expenses

• Funeral expenses

Funeral expenses

T – 10.10

Covers: Covers:

• You

You

• Your family

Your family

• Your passengers

Your passengers

Required? Required?

• Not required by Virginia law

Not required by Virginia law

Topic 1 Lesson 4

Uninsured/Underinsured Uninsured/Underinsured Motorist (UM/UIM) Coverage Motorist (UM/UIM) Coverage

T – 10.11

Pays: Pays:

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

Topic 1 Lesson 4

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

• r hit-and-run motorist)

You Your family Your passengers

Required? Required?

Not by Virginia law, but company must offer

Collision Coverage Collision Coverage

T – 10.12

Topic 1 Lesson 4

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

• ften required by the

finance company that loaned you the money to buy the car

Comprehensive Coverage Comprehensive Coverage

T – 10.13

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

Topic 1 Lesson 4

Towing and Labor Coverage 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 disabled

When your car is disabled

Covers: Covers:

• Your car

Your car

Required? Required?

• Not required by Virginia law

Not required by Virginia law

T – 10.14

Topic 1 Lesson 4

Rental Reimbursement Coverage Rental Reimbursement Coverage

Pays: Pays:

A rental car while your car is being repaired after a crash after comprehensive losses

Covers: Covers:

You Your family members

Required? Required?

Not required by Virginia law

Car Rental Company

T – 10.15

Topic 1 Lesson 4

Insurance Costs Insurance Costs

• How are car insurance rates determined?

How are car insurance rates determined?

• What factors are used in establishing

What factors are used in establishing rates? rates?

• Discounts?

Discounts?

T – 10.16

Topic 1 Lesson 5

Insurance Costs Insurance Costs

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

T – 10.17

Topic 1 Lesson 5

Type of Car Type 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 rates Collision 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 Rates Highest 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

Insurance Costs Insurance Costs

T – 10.18

Topic 1 Lesson 5

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

Your Deductibles Your Deductibles

Your share of the cost of a collision or comprehensive claim You can reduce your premium by raising your deductibles

Surcharges Surcharges

Penalties added for accidents and certain traffic violations

Discounts Discounts

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

T – 10.19

Education and Car Equipment Savings Education and Car Equipment Savings

NOTE: SOME insurance companies offer the following discounts

Premium Discounts Premium Discounts

Topic 1 Lesson 6

Auto Insurance Discount Auto Insurance Discount Savings Savings

Defensive driving courses Defensive driving courses

Percent off Percent off Liability, Collision, and Medical Payments

Airbags and other passive Airbags and other passive restraints restraints

Percent off Percent off Medical Payments and Bodily Injury

Drug / alcohol education Drug / alcohol education

Percent off Percent off Liability, Collision, Medical Payments, and Bodily Injury

Anti Anti-

• theft devices

theft devices

May Reduce Comprehensive premium; May Reduce Comprehensive premium; amount varies by device and county

Two or more cars on a policy Two or more cars on a policy

May reduce May reduce Liability, Medical Payments Liability, Medical Payments and Collision Insurance costs and Collision Insurance costs

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

• Your age and annual mileage driven

Your age and annual mileage driven

• Policy renewal, no claims, good driving

Policy renewal, no claims, good driving record and anti record and anti-

• lock brakes

lock brakes

• A parent or family whose young driver is

A parent or family whose young driver is away at school without a car away at school without a car

• Full

Full-

• time college and high school students

time college and high school students with a "B" or 3.0 grade point average with a "B" or 3.0 grade point average

• Cars with automatic daytime running lights

Cars with automatic daytime running lights

• Membership or adult leadership in certain

Membership or adult leadership in certain youth organizations youth organizations

T – 10.20

Insurance Premium Discounts Insurance Premium Discounts

Topic 1 Lesson 6

High Risk Drivers High Risk Drivers

• High risk drivers (bad driving record)

High risk drivers (bad driving record)

Each company has its own rules for deciding

whether to insure high risk drivers (Called “underwriting guidelines”)

Usually much harder to get car insurance Must pay higher premiums

• Assigned

Assigned-

• risk drivers

risk drivers

VA Auto Insurance Plan—requires all

insurance companies to take some high risk drivers

High risk drivers are assigned to an insurance

company by the state

Surcharges are added for at least 3 years

T – 10.21

Topic 1 Lesson 6

Your Driving Record May COST You Your Driving Record May COST You

T – 10.22

High Risk Drivers High Risk Drivers

Topic 1 Lesson 6

Crashes or Violations Crashes or Violations

Surcharges Surcharges Your premium Your premium MAY

MAY increase by:

increase by:

One collision (at-fault) in 36 months

15%

Two collisions

35%

Three collisions

60%

Each moving violation (speeding, etc.)

(Surcharges will apply for certain traffic violations.) Varies

Involuntary manslaughter

60%

Driving under the influence

60%

Criminally negligent driving

60%

Paying for Insurance Paying for Insurance

T – 10.23

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

• ne installment

Insurance companies must offer installment plans Agents and insurers may use finance companies that will

• lend you money at high

interest rates to pay insurance premiums Look for insurance companies that offer installment plans with low interest and fees

Topic 1 Lesson 6

Installment Plan Installment Plan

Number of Months _____ Interest Rate _____%

________________________

Client

________________________

Company Representative

Installment Plan

Paying for Insurance Paying for Insurance

Ask the agent: Ask the agent:

Who will provide my installment plan?

• the insurance company, or
• a premium finance company

If it is a premium finance company, what is the interest rate? 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 )

T – 10.24

Topic 1 Lesson 6

INSTALLMENT PLAN WORKSHEET INSTALLMENT PLAN WORKSHEET

Agent or Company Names ______________ ______________ Interest Rate, if any ______________ ______________ Down Payment ______________ ______________ Monthly Payment ______________ ______________ Number of Months ______________ ______________

Total you pay

______________ ______________

Use a worksheet to compare the installment Use a worksheet to compare the installment packages offered by agents and companies packages offered by agents and companies

T – 10.25

Paying for Insurance Paying for Insurance

Topic 1 Lesson 6

Losing Your Insurance Losing Your Insurance

Cancellation Cancellation

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 10 days' notice before canceling
• Must refund unearned premium

Note: Cancellation for non-payment is effective immediately.

Non Non-

• renewal

renewal

Company will not offer a new contract

Request Reasons in Writing Request Reasons in Writing

Why company canceled the policy Why company will not renew the policy

Topic 1 Lesson 6

CANCELED CANCELED

CANCELED

T – 10.26

After the Collision After the Collision

What Now? What Now?

Discuss what your policy requires you to do after a collision Your uninsured motorist coverage pays for hit-and-run collisions only if the crash is reported to the police

T – 10.27

Topic 1 Lesson 7

After the Collision After the Collision

T – 10.27a

Topic 1 Lesson 7

Involved in a Crash Involved 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

After the Collision After the Collision

T – 10.27b

Topic 1 Lesson 7

What should you do when What should you do when you are involved in a you 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

Buying a Car Buying a Car

• New or Used?

New or Used?

• Why Do I Need It?

Why Do I Need It?

• What Safety Features are Needed?

What Safety Features are Needed?

• How Much Will it Cost?

How Much Will it Cost?

• How Economical is It?

How Economical is It?

• What Options Do I Need?

What Options Do I Need?

T – 10.28

Topic 2 Lesson 1

Vehicle Price Formula Vehicle Price Formula

Purchase Price x Interest Rate x Length of Finance Purchase Price x Interest Rate x Length of Finance Purchase Price Purchase Price -

• $10,000

$10,000 Interest Rate Interest Rate -

• 8 percent

8 percent Length of Finance Length of Finance -

• 24 months

24 months

Purchase Price + Sales Taxes + Interest Purchase Price + Sales Taxes + Interest = Total Price Approximately 11,592.00 = Total Price Approximately 11,592.00

Your Monthly Payment Your Monthly Payment

What is your monthly payment? What is your monthly payment?

T – 10.29

Topic 2 Lesson 1

Vehicle Price Vehicle Price Monthly Payment Monthly Payment Formula Formula

Your Monthly Payment Your Monthly Payment

T – 10.29a

Topic 2 Lesson 1

Price + taxes + interest # of months

= Monthly payment

Cost of Vehicle $10,000.00 Cost of Vehicle $10,000.00 3.5% Titling Tax 3.5% 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

• Preparing the vehicle

Preparing the vehicle

• Loading considerations

Loading considerations

• Basic and emergency equipment needs

Basic and emergency equipment needs

• Personal preparation

Personal preparation

Planning an Extended Trip Planning an Extended Trip

T – 10.30

Topic 3 Lesson 1

Trip Costs Trip Costs

• Lodging (hotel/motel)

Lodging (hotel/motel)

• Meals

Meals

• Tolls

Tolls

• Possible Repairs

Possible Repairs

• Fuel

Fuel

• Calculating Fuel Costs

Calculating Fuel 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

T – 10.31

Topic 3 Lesson 1

Formula: 1500 x $1.60 = $109.09 22

City Maps City Maps

North orientation Legend (explains the markings and symbols on the map) Street Index – Letters/numbers reference location Determining Distances – Map scale

Map Reading Map Reading

RICHMOND

T – 10.32

Topic 3 Lesson 1

Map Reading Map 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

T – 10.33

Topic 3 Lesson 1

Destination Driving Destination Driving

Using a Virginia map, plan a trip from your home to a Using a Virginia map, plan a trip from your home to a point in Virginia more than five hours away point in Virginia more than five hours away

T – 10.34

Topic 3 Lesson 1

• List the route numbers you could use with the direction

List the route numbers you could use with the direction

• f travel (Example: I
• f travel (Example: I-
• 95 North)

95 North)

• How long it will take

How long it will take

• The number of miles

The number of miles

• Location of rest stops

Location of rest stops

• Cost of fuel

Cost of fuel (Your car gets 20 mph (Your car gets 20 mph -

• cost of fuel is $1.60/gallon)

cost of fuel is $1.60/gallon)

Conserving Virginia’s Natural Resources Conserving Virginia’s Natural Resources

T – 10.35

Topic 4 Lesson 1

When operating your vehicle When operating your vehicle Accelerate smoothly. Drive at moderate speeds. Avoid unnecessary braking and try to anticipate the traffic ahead. Avoid excessive idling. Join a car pool for commuting to and from school or work. Keep your vehicle in good working order. Recycle old oil and fluids. Recycle old vehicle parts.

Conserving Virginia’s Natural Resources Conserving Virginia’s Natural Resources

T – 10.35a

Topic 4 Lesson 1

Disposal of Vehicle Parts and Fluids Disposal of Vehicle Parts and Fluids

Hazardous substances need to be disposed

• f in the proper manner -- not just dumped
• nto the ground or poured down the drain.

OLD OLD Oil Oil

take items to the nearest hazard waste collection center

• r other appropriate collection

location such as an automotive repair shop; or contact your local health department to find an appropriate drop-off location.

Conserving Virginia’s Natural Resources Conserving Virginia’s Natural Resources

Topic 4 Lesson 1

call your local recycling center, service station, sanitation center, or local health department to review proper recycling procedures read all labels carefully to ensure you are using the correct container monitor and fix automotive fluid leaks to prevent spills, use a funnel for pouring automotive fluids whenever possible, avoid leaving leftover liquids in the container catch any drained fluid and store in a container, or a well-sealed and labeled plastic jug never discard used automotive fluid in sinks, storm drains, the garbage, or on the ground store automotive fluids separately — NEVER mix them together

Tips for handling toxic substances Tips for handling toxic substances

T – 10.35b