Car Stuff

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Car Stuff
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Auto Insurance Basic Types

• Bodily injury liability
• Pays for injuries you cause to someone
  else. This is usually required.
• Property damage liability
• Pays for damages to someone elses car, mailbox,
  garage, or pool. This is also usually required.
• Personal Injury Protection (PIP)
• Pays for injuries to the driver and passengers of
  your car. This is required in some states.

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Auto Insurance Basic Types (continued)

• Collision
• Pays for your car when you get in a wreck.
• Comprehensive
• Pays for damage to your car for theft,
  earthquake, or other things not wreck-related.
• Uninsured motorist
• Pays for your injuries when you get into an
  accident with an uninsured motorist.

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That 20/40/10 thing

• First number (20) Up to 20,000 of coverage for
  bodily injury liability (someone elses injury)
  per person injured in an accident.
• Second number (40) Up to 40,000 coverage for
  bodily injury liability per accident.
• Third number (10) Up to 10,000 coverage fro all
  property damage per accident.

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No-fault

• Some states have something called no-fault
  laws. This means that your insurance carrier
  covers your bodily injury and property damage no
  matter who caused the accident.

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Buying vs. Leasing a Car

• If you want a new car every three years, a lease
  might be best for you. A lease is simple with
  minimal unknown costs. If you want to keep a car
  for a while, buying will save you money in the
  long run.

VS.
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You must master the jargon

• Residual value Value of your car at the end of
  the lease
• Capitalized cost Selling price.
• Money factor Interest in a lease.
• Cant go lower Lies. All lies.

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Lease pros and cons

• () Leases usually have lower monthly payments.
  When you lease youre paying for the difference
  in value of the car now versus the value at the
  end of the lease.
• () Leases have no repair costs. Since your car
  is new, it will be under warrantee over the life
  of the lease. If you own a car, your warrantee
  will eventually end.

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Lease pros and cons

• (-) Leases have higher insurance premiums. Since
  you dont own the car, the leasing company gets
  to call the shots when it comes to insurance.
  They usually require more than the minimum state
  standards.
• (-) Leases have restrictions. A lease charges you
  extra fees for driving too many miles. When you
  own you can drive as much as you want.

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Lease pros and cons

• (-) Lease payments never end. If you lease a car
  and then lease again, your payments never end.
  When you buy a car, youll eventually pay it off.