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

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

4. Reminder 1.Bring paper/pen/pencil and notebook 2.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.k12.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.

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

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

7. Insurance

8. 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.

9. Insuring a Car VA Law requires you to provide proof of financial responsibility VA Law requires you to provide proof of financial responsibility Your parents’ policy covers you while you have a learner’s permit Your parents’ policy covers you while you have a learner’s permit

10. 7 Types of Coverages

11. 1- Liability Coverage Pays: Other people’s medical expenses Other people’s medical expenses Other people’s auto repairs Other people’s auto repairs Property damage Property damageCovers: You You Your family Your family Others driving with your permission Others driving with your permissionRequired? Yes, required by Virginia law Yes, required by Virginia law

12. 2- Medical Payments Coverage Pays: Medical expenses Medical expenses Funeral expenses Funeral expenses Covers: You You Your family Your family Your passengers Your passengersRequired? Not required by Virginia law Not required by Virginia law

13. 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

14. 4- Collision Coverage Pays: Your car repair Your car replacementCovers: Your car Regardless of driver or who was at faultRequired? Not by Virginia law, but often required by the finance company that loaned you the money to buy the car

15. 5- Comprehensive Coverage Pays: Car repair or replacement after: fire hailstorm theft or other non-collision eventCovers: Actual cash value of your carRequired? Not by Virginia law, but often required by car finance companies

16. 6- Towing and Labor Coverage Pays: Towing Towing On site labor charges such as changing a tire On site labor charges such as changing a tire When your car is disabled When your car is disabledCovers: Your car Your carRequired? Not required by Virginia law Not required by Virginia law

17. 7- Rental Reimbursement Coverage Pays: A rental car after a crash after comprehensive lossesCovers: You and Your familyRequired? Not required by Virginia law Car Rental Company

18. 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?

19. 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.

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

21. Penalties for Driving without Insurance  $500 fine  Suspension of your driver’s license  Suspension of your vehicle registration  Higher insurance premiums for the next 3 years  If you caused the crash, you are responsible for other people’s losses Suspended

22. Insurance Costs How are car insurance rates determined?

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

24. Factors used to determine your premium: Type of Car Highest for luxury, high-performance, and sports cars Higher for cars that damage easily Higher for cars that cost more to repair Collision and comprehensive rates 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

25. Factors used to determine your premium: 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

26. Education and Car Equipment Savings NOTE: SOME insurance companies offer the following discounts Auto Insurance Discount Savings Defensive driving courses Percent off Percent off Liability, Collision, and Medical Payments Airbags and other passive restraints Percent off Percent off Medical Payments and Bodily Injury Drug / alcohol education Percent off Percent off Liability, Collision, Medical Payments, and Bodily Injury Anti-theft devices May Reduce Comprehensive premium; 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 Do Not Write this Slide!

27. Some companies may give discounts for: Your ageYour age Annual mileage drivenAnnual mileage driven No claimsNo claims Good driving recordGood driving record Good grades "B" or 3.0 gpaGood grades "B" or 3.0 gpa

28. Paying for Insurance Many people can’t afford to pay their car insurance premium in one installment Insurance companies must offer installment plans Installment Plan Number of Months_____ Interest Rate_____% ________________________ Client ________________________ Company Representative Installment Plan

29. Paying for Insurance 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 ) Do Not Write this Slide

30. Cancellation of your Insurance 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 CANCELED

31. Class Work 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. Section (Day 5)

32. The End!!