Ownership Responsibilities

Standard 10 Objective 2 Students will understand the financial and legal responsibilities of vehicle ownership. Students will understand the financial and legal responsibilities of vehicle ownership. Understand Utah motor vehicle insurance requirements and coverage. Understand Utah motor vehicle insurance requirements and coverage.

INSURING, PURCHASING, TRIP PLANNING, LITTERING, LICENSING YOUR VEHICLE

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 $

Insuring a Car law requires you to have car insurance. If you still owe money on your car, your lender can require insurance.

Safety Responsibility Law – Minimum liability coverage – Alternatives to insurance – Types of proof of financial responsibility – When you must show proof of financial responsibility – Penalties for driving without insurance

Auto Insurance Required Minimum Liability Coverage Required Minimum Liability Coverage – $20,000 per injured person – Up to $40,000 for everyone hurt in an accident – $15,000 for property damage

Auto Insurance You must show Proof of Financial Responsibility when you: You must show Proof of Financial Responsibility when you: – Are asked for it by a police officer – Have a collision – Register your car or renew its plates – Obtain or renew a driver license – Get your car inspected

Although driving without insurance is considered a "traffic violation" in Utah, it does require a mandatory court appearance and penalties can include jail time and more than $1,000 in fines and surcharge. You may also be required to carry SR22 insurance if you have been convicted of driving without insurance in Utah.

Driving without insurance in Utah is a class B misdemeanor punishable by a maximum penalty of up to 180 days in jail and a $1,000 plus a 90% surcharge.

Auto Insurance Declarations Page of Your Policy Declarations Page of Your Policy – The exact name of your insurance company – The policy number – Your coverages and how much they cost – Your deductibles, if any – The vehicles insured on the policy, their vehicle identification numbers (VINs), and their classifications for rating purposes

Personal Auto Policy Eight Types of Coverage Eight Types of Coverage – Liability – Medical Payments – Personal Injury Protection – Uninsured/Underinsured Motorist – Collision – Comprehensive – Towing & Labor – Rental Reimbursement

Liability Coverage Pays: – Other people’s medical expenses – Auto repairs – Attorney fees – Bail to $250 Covers: – You – Your family – Others driving with your permission Required? – Yes, by law

Medical Payments Coverage Pays: – Medical – Funeral expenses Covers: – You – Your family – Your passengers Required? – Not required by law

Personal Injury Protection (PIP) Coverage Pays: – Medical expenses – Funeral expenses – Lost wages – Homemaker/caregiver services Covers: – You – Your family – Your passengers Required? – Not by law, but company must offer

Uninsured/Underinsured Motorist (UM/UIM) Coverage Pays: – Medical expenses – Funeral expenses – Car repairs – Car rental – Replacement of damaged contents Covers: – You – Your family – Your passengers Required? – Not by law, but company must offer

Collision Coverage Pays: – Your car repair – Your car replacement – After a crash Covers: – Your car – Regardless of driver Required? – Not by law, but by car loan lenders

Comprehensive Coverage Pays: – Car repair or replacement after fire hailstorm theft or other non-collision event rental car after theft Covers: – Your car Required? – Not by law, but by car loan lenders

Towing & Labor Coverage Pays: – Towing – Labor charges – When your car is disabled Covers: – Your car Required? – Not required by law

Rental Reimbursement Coverage Pays: – A rental car – Your car is undergoing repair – For covered damage Covers: – You – Your family members Required? – Not required by law

Insurance Costs How car rates are determined Factors used in establishing rates Discounts – Mandatory – Non-mandatory

Insurance Costs Factors used to determine your premium – Your age and marital status Highest rates – Male drivers under 25 – Unmarried women under 21 Over 50 may get discounts – County where you keep your car Urban counties have more accidents and auto thefts; tending to be higher than those of rural areas – Your 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 Hi gher for cars driven to work or used for business.

Insurance Costs Factors used to determine your individual premium – Your deductibles Your share of the cost of a collision or comprehensive claim Reduce your premium by raising your deductibles – Surcharges Added for collisions resulting in property damage of $1,000 or more – Discounts Some required by the state, while others are optional with companies Mutuals are not required to give any discounts

Premium Discounts Auto Insurance Discounts Savings Defensive driving and driver education courses for young drivers Airbags and other passive restraints Drug/alcohol education Anti-theft devices Two or more cars on a policy 10 percent off Liability, Collision Medical Payments, and PIP 15 percent off Medical Payments and PIP (driver’s side) 30 percent off Medical Payments and PIP (both sides) 5 percent off Liability, Collision, Medical Payments, and PIP Reduces Comprehensive premium; amount varies by device and county 20 percent off Liability, Medical Payments, and PIP 15 percent off Collision Education and Car Equipment Saves

Premium Discounts may giveoptional discounts Companies may give optional discounts for: – Your age and annual mileage driven – Policy renewal, with a good claims and driving record anti-lock brakes – A parent or family whose young driver is away at school without a car – Full-time college and high school students with a "B" or 3.0 average – Cars with automatic daytime running lights – Membership or adult leadership in certain youth organizations.

"High Risk" Drivers Each company has its own rules – called "underwriting guidelines" – for deciding whether to insure people Makes it harder to get car insurance Must pay higher premiums Insurance for high risk drivers Surcharges

"High Risk" Drivers Your Driving Record Will Cost You One collision (at-fault) in 36 months Two collisions Three collisions Each moving violation (speeding, etc.) Involuntary manslaughter Driving under the influence Criminally negligent driving No license, or license suspension 15% 35% 60% 0% 60% 35% * Surcharges for most drivers are percentages of the rates in your county for liability, collision, PIP, and medical payments coverage. Accident or Violation (Premium Cost will increase by) Surcharge *

Paying for Insurance Many people can’t pay their car insurance premium in one installment Insurance companies must offer installment plans Agents and insurers use finance companies – Lend money at high interest rates to pay insurance premiums Look for insurance companies that offer their own installment plans

Paying for Insurance 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

Paying for Insurance Use worksheet to compare the installment packages offered by agents and companies INSTALLMENT PLAN WORKSHEET Agent or Company Names ____________________________ Interest Rate, if any ____________________________ Down Payment ____________________________ Monthly Payment ____________________________ Number of Months ____________________________ Total you pay____________________________

Losing Your Insurance 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, for the following reasons: Company must give 10 days' notice before canceling Refund of unearned premium Non-renewal – Company will not develop a new contract Request Reasons in Writing – Why company canceled policy – Why company will not renew the policy

After the Collision… 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 reported to the police

Buying a Car New or Used? New or Used? What Do I Need It To Do? What Do I Need It To Do? 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?

Your Monthly Payment PriceFormula Price Formula What is the Monthly Payment? Vehicle Price Purchase Price x Interest Rate x Length of Finance Purchase Price - $12,000 Interest Rate - 7 percent Length of Finance - 48 months Purchase Price + Interest+ Sales Taxes = Total Price over 16,000.00

Planning an Extended Trip Preparing the vehicle Preparing the vehicle Loading considerations Loading considerations Basic and emergency equipment needs Basic and emergency equipment needs Personal preparation Personal preparation

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 Car gets 22 mpg Fuel costs per gallon Formula: 1500 x $1.20 = $

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

Map Reading State Maps – North orientation – Legend (explains the markings and symbols on the map) – Town/City index – Coordinates Letters/numbers reference location Letters/numbers reference location – Maps of major cities – Determining distances Map scale Map scale Mileage chart Mileage chart Colored symbols Colored symbols

Litter Definition Decayable waste from: – Public or private establishment – Personal residence – Restaurants including animal and vegetable material. Nondecayable solid waste, except ashes – Combustible material paper, rags, cartons, wood, furniture, rubber, plastics, yard trimmings and leaves, paper, rags, cartons, wood, furniture, rubber, plastics, yard trimmings and leaves, – Non-combustible solid waste glass, crockery, tin or aluminum cans, and metal furniture, discarded or worn out materials and machinery such as motor vehicles, motor vehicle parts, and old appliances. glass, crockery, tin or aluminum cans, and metal furniture, discarded or worn out materials and machinery such as motor vehicles, motor vehicle parts, and old appliances.

Littering Law Under the Litter Abatement Act, it is illegal to: – Dispose of or allow someone else to dispose of litter at a place that is not a legal landfill. – Receive litter for the purpose of disposing it at a place that is not a legal landfill, regardless of whether the litter or the land on which the litter is to be disposed belongs to or is controlled by the person. – Transport litter to a place that is not a legal landfill for the purpose of dumping.

“Don’t Mess With”  Littering fine is up to $500.  Repeated offense: fines up to $2,000 and 180 days in jail.  Failing to cover your load with a tarp - fine of up to $200 for the 1 st offense and up to $500 for repeat offenders.  Discarding trash more than 15 pounds - considered illegal dumping and steeper fines applied.  The Don’t Mess with litter prevention campaign - developed in 1986 to encourage Texans to take pride in their state by: keeping it clean.

Costs of Littering It costs taxpayers about $24 million a year more than $16.00 per acre to clean up the litter on highways. That money would otherwise go to  paving and repairing roads  completing beautification projects around the state.

Impact on Health A littered road and neighborhood more likely to be trashed than a pristine road A littered road and neighborhood more likely to be trashed than a pristine road  Litter is ugly and decreases the perceived value of where you live.  Litter can also become hazardous to our soil and water.  A piece of trash that is tossed on the highway can end up floating down the river.  Tossing a lit cigarette out the car window can start a fire.

Strategies  Take personal responsibility for your own garbage and encourage others to do the same.  Keep a litterbag in your vehicle and use it.  Set an example for your neighbors, friends,and children by putting your trash where it belongs.  Cover your load.  Adopt a highway.  Join the Don’t Mess with Partner program and have your school take a proactive lead in litter prevention.

Conserving Natural Resources Accelerate Smoothly Accelerate Smoothly Brake Gently Brake Gently Keep Your Vehicle Maintained Keep Your Vehicle Maintained Recycle Old Oil and Fluids Recycle Old Oil and Fluids Carpool Carpool Others? Others?

Driver Licensing Permit Requirements Permit Requirements – 15 years minimum age – Parent/Guardian/Mentor cosign – Vision and Knowledge Test – Enrolled in Driver Education Program – Good for 1 year – Accompanied by a Qualified Supervising Licensee seated beside the driver

Driver Licensing License Requirements License Requirements – Successful Completion of Driver Education Program – Driver Test or Waiver to Dept. of Public Safety – Zero Alcohol Tolerance – Class Attendance

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