section 1 (day 5) virginia driver responsibilities: licensing responsibilities
TRANSCRIPT
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”
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
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)