Chapter 17/13.5 Buying and Owning a Vehicle and Insurance

For Your Quiz You should be able to explain the following: You should be able to explain the following: List and explain the different types of insurance coverages available List and explain the different types of insurance coverages available List the three types of insurance required by the State of Illinois for driving List the three types of insurance required by the State of Illinois for driving List the factors used in determining your insurance premiums List the factors used in determining your insurance premiums Define premium Define premium Define deductible Define deductible List and explain the four major expenses involved in purchasing a vehicle List and explain the four major expenses involved in purchasing a vehicle

Buying a Vehicle Can you afford it? Can you afford it? Consider: Consider: Purchase Price Purchase Price Depreciation Depreciation Financing Financing Other Costs Other Costs

Other things to consider Vehicle Size Vehicle Size Engine Size and Types Engine Size and Types Transmission Transmission Optional Equipment Optional Equipment

Leasing a Vehicle Leasing Leasing Things to consider: Things to consider: Contract length and terms Contract length and terms End of lease options End of lease options Return and lease Return and lease Purchase Purchase Return with no obligations Return with no obligations

Buying a Used Vehicle Private vs. Dealer Private vs. Dealer How much should you pay? How much should you pay? NADA Bluebook NADA Bluebook NADA Bluebook NADA Bluebook Kelley Bluebook Kelley Bluebook Kelley Bluebook Kelley Bluebook Choosing a vehicle Choosing a vehicle CARFAX CARFAX CARFAX Vehicle “Walk-around” Vehicle “Walk-around” Test Drive Test Drive Closing the Deal Closing the Deal

Car Insurance Terms to know: Terms to know: Financial Responsibility Laws Financial Responsibility Laws Premium Premium Deductible Deductible

Types of Car Insurance Liability Insurance Liability Insurance Bodily Injury Liability Insurance Bodily Injury Liability Insurance Property Damage Liability Insurance Property Damage Liability Insurance Uninsured Motorist/Underinsured Motorist Insurance Uninsured Motorist/Underinsured Motorist Insurance Collision Insurance Collision Insurance Comprehensive Insurance Comprehensive Insurance Medical Payments Insurance Medical Payments Insurance Towing Insurance Towing Insurance Rental Insurance Rental Insurance

How do they determine your rates? Based on statistics Based on statistics Look at the following categories: Look at the following categories: Driving Record Driving Record Age Age Miles Driven Miles Driven Driver Gender Driver Gender Marital Status Marital Status Type of Vehicle Type of Vehicle Where You Live and Drive Where You Live and Drive Driver’s Claim Record Driver’s Claim Record

Ways to reduce your premiums Good Student Discount Good Student Discount Good Driver Discount Good Driver Discount Multiple Policies Multiple Policies Safety Features/Anti- Theft Devices Safety Features/Anti- Theft Devices

Example costs for teen insurance Car – Pontiac Grand Am 6 cylinder, 4 door Full Coverages: $500 deductible Liability Limits: 100/300/100 Parents = $ every 6 months Son: Part time = $ Part time = $ PT Good Student = $ PT Good Student = $ Full Time = $1, Full Time = $1, FT GS = $ FT GS = $ FT GS 1 st ticket = $ FT GS 1 st ticket = $ FT GS 1 st ticket, 1 collision = $1, FT GS 1 st ticket, 1 collision = $1, FT GS 2 nd ticket, 1 collision = $1, FT GS 2 nd ticket, 1 collision = $1,640.00Daughter: Part time = $ PT Good Student = $ Full Time = $ FT GS = $ FT GS 1 st ticket = $ FT GS 1 st ticket, 1 collision = $1, FT GS 2nd ticket, 1 collision = $1,233.00