Section 1 Day 5 Virginia Driver Responsibilities Licensing

Section 1 (Day 5) Virginia Driver Responsibilities: Licensing Responsibilities

Bell Ringer Write a half page red to red. Save these to be turned in with your test! Worth 10% of your grade. o 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.

Reminder 1. 2. Bring paper/pencil and notebook Electronics are for instructional use with permission 3. Don’t forget to do daily quizzes on QUIA. COM 4. No Excuses why you don’t take Quizzes 1 -6 before test day!! (Quizzes are worth 30% of grade) 5. Attendance is MANDATORY!! (NO SLEEPING in class) 6. All notes can be found on Harrisonburg’s staff website: http: //staff. harrisonburg. k 12. va. us/~tbutler/ 7. If you are NOT taking notes in class, please be quiet and ask to use the restroom at the end of class.

Day 5 Objectives • • • The students will understand the importance of having auto insurance when operating a motor vehicle. The students will learn the different type of auto insurance coverages. The students will understand the characteristics of an insurance policy including prices, cost, and premium differences. Related SOL: DE. 19

“Green Card” Your Name Here Harrisonburg High School H. C. P. S 36 x 03/06/2012 This is what you are trying to get at the end of class. .

Insurance

What is auto insurance? n n 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 Car ü VA Law requires you to provide proof of financial responsibility ü Your parents’ policy covers you while you have a learner’s permit

7 Types of Coverages

1 - Liability Coverage Pays: ü Other people’s medical expenses ü Other people’s auto repairs ü Property damage Covers: ü ü ü Your family Others driving with your permission Required? ü Yes, required by Virginia law

2 - Medical Payments Coverage Pays: ü Medical expenses ü Funeral expenses Covers: ü Your family ü Your passengers Required? ü Not required by Virginia law

3 - Uninsured/Underinsured Motorist (UM/UIM) Coverage Pays: ü ü ü Medical expenses Funeral expenses Car repairs Car rental Replacement of damaged contents Covers: ü You (if hit by an uninsured/underinsured or hit-and-run motorist) Required? ü Not by Virginia law, but company must offer

4 - Collision Coverage Pays: ü Your car repair ü Your car replacement Covers: ü Your car ü Regardless of driver or who was at fault Required? ü Not by Virginia law, but often required by the finance company that loaned you the money to buy the car

5 - Comprehensive Coverage Pays: Car repair or replacement after: ü fire ü hailstorm ü theft or other non-collision event Covers: ü Actual cash value of your car Required? ü Not by Virginia law, but often required by car finance companies

6 - Towing and Labor Coverage Pays: ü ü ü Towing On site labor charges such as changing a tire When your car is disabled Covers: ü Your car Required? ü Not required by Virginia law

7 - Rental Reimbursement Coverage Pays: ü A rental car üafter a crash üafter comprehensive losses Covers: ü You and Your family Required? ü Not required by Virginia law Car Rental Company

How much Insurance should you have? n At a minimum, your insurance must provide the following: n n n $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 minimum insurance will cover this?

Do You Need Insurance? n n 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.

Virginia Auto Insurance You must show Proof of Financial Responsibility when you: ü are asked for it by a police officer; ü have a collision; or ü register your vehicle or renew its plates.

Penalties for Driving without Insurance Ø $500 fine Ø Suspension of your driver’s license Ø Suspension of your vehicle registration Ø Higher insurance premiums for the next 3 years Ø If you caused the crash, you are responsible for other people’s losses Su sp en de d

Insurance Costs How are car insurance rates determined?

Factors used to determine your premium: Your Age, Marital Status, Driving Record, and Grades Highest Rates ü Male drivers under 25 ü Unmarried women under 21

Factors used to determine your premium: Type of Car Collision and comprehensive rates ü Highest for luxury, high-performance, and sports cars ü Higher for cars that damage easily ü Higher for cars that cost more to repair How you use your car Higher 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: Your Deductibles üYour share of the cost of a collision or comprehensive claim üYou can reduce your premium by raising your deductibles Surcharges üPenalties added for accidents and certain traffic violations Discounts üSome are required by the state, while others are incentives offered by insurance companies

Education and Car Equipment Savings NOTE: SOME insurance companies offer the following discounts Do Not Write this Slide! Auto Insurance Discount Savings Defensive driving courses Percent off Liability, Collision, and Medical Payments Airbags and other passive restraints Percent off Medical Payments and Bodily Injury Drug / alcohol education Percent off Liability, Collision, Medical Payments, and Bodily Injury Anti-theft devices May Reduce Comprehensive premium; amount varies by device and county Two or more cars on a policy May reduce Liability, Medical Payments and Collision Insurance costs

Some companies may give discounts for: • Your age • Annual mileage driven • No claims • Good driving record • Good grades "B" or 3. 0 gpa

Paying for Insurance companies must offer installment plans Installment Plan Number of Months _____ Interest Rate _____% ____________ Client ____________ Company Representative llm Ins ta n Pla ü Many people can’t afford to pay their car insurance premium in one installment en t ü

Paying for Insurance Do Not Write this Slide ü How much is the down payment? How much is my monthly payment? ü How many payments do I make? ü How much is my total payment? ü (annual or six-month premium plus interest )

Cancellation of your Insurance D N CA LE CE First 60 days, company cancel for any reason, including a ticket or a collision üAfter policy is in effect more than 60 days, cancel but: - must give 10 days' notice before canceling - Must refund unearned premium Note: Cancellation for non-payment is CANCELED effective immediately.

Section (Day 5) Class Work n n 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.

The End!!