Section 1 (Day 5)

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Section 1(Day 5)

• Virginia Driver Responsibilities
• Licensing Responsibilities

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

• 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.

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Reminder

• Bring paper/pen/pencil and notebook
• Electronics are for instructional use with
  permission
• Dont forget to do daily quizzes on QUIA.COM
• No Excuses why you dont take Quizzes 1-6
• before test day!! (Quizzes are worth 30 of
  grade)
• Attendance is MANDATORY!! (NO SLEEPING in class)
• All notes can be found on Harrisonburgs staff
  website
• http//staff.harrisonburg.k12.va.us/tbutler/
• If you are NOT taking notes in class, please be
  quiet and ask to use the restroom at the end of
  class.

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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

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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..
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Insurance
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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.

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Insuring a Car

• VA Law requires you to provide proof of financial
  responsibility

• Your parents policy covers you while you have a
  learners permit

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7 Types of Coverages
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1- Liability Coverage

• Pays
• Other peoples medical expenses
• Other peoples auto repairs
• Property damage
• Covers
• You
• Your family
• Others driving with your permission
• Required?
• Yes, required by Virginia law

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2- Medical Payments Coverage

• Pays
• Medical expenses
• Funeral expenses

• Covers
• You
• Your family
• Your passengers
• Required?
• Not required by Virginia law

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

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

• Covers
• You (if hit by an uninsured/underinsured or
  hit-and-run motorist)
• Required?
• Not by Virginia law, but company must offer

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4- Collision Coverage

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

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5- Comprehensive Coverage

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

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6- Towing and Labor Coverage

• Pays
• Towing
• On site labor charges such as changing a tire
• When your car is disabled
• Covers
• Your car
• Required?
• Not required by Virginia law

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7- Rental Reimbursement Coverage

• Pays
• A rental car
• after a crash
• after comprehensive losses
• Covers
• You and Your family
• Required?
• Not required by Virginia law

Car Rental Company
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How much Insurance 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 minimum insurance will cover this?
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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.

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Virginia Auto Insurance
You must show Proof of Financial Responsibility
when you

• are asked for it by a police officer
• have a collision or
• register your vehicle or renew its plates.

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Penalties for Driving without Insurance

• 500 fine
• Suspension of your drivers license
• Suspension of your vehicle registration
• Higher insurance premiums for the next 3 years
• If you caused the crash, you are responsible for
  other peoples losses

Suspended
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Insurance Costs

• How are car insurance rates
• determined?

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Factors used to determine your premium
Your Age, Marital Status, Driving Record, and
Grades
Highest Rates

• Male drivers under 25
• Unmarried women under 21

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Factors used to determine your premium
Type of Car
Collision and comprehensive rates

• Highest for luxury, high-performance, and sports
  cars
• Higher for cars that damage easily
• 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
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Factors used to determine your premium
Your Deductibles

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

Surcharges

• Penalties added for accidents and certain traffic
  violations

Discounts

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

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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
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• Some companies may give discounts for

• Your age
• Annual mileage driven
• No claims
• Good driving record
• Good grades "B" or 3.0 gpa

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Paying for Insurance
Installment Plan Number of Months _____ Interes
t Rate _____ ________________________ Client
________________________ Company Representative

• Many people cant afford to pay their car
  insurance premium in one installment
• Insurance companies must offer installment plans

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Paying for Insurance
Do Not Write this Slide

• 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 )

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Cancellation of your Insurance
CANCELED

• 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.

CANCELED
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Class Work
Section (Day 5)

• In your drivers education book, read pages 17-18
  The value of taking a driver education course
  and then answer questions 12 in your notebook.
• Save these to be turned in with your test.

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The End!!