1. Chapter 16

2. Buying/Owning a Vehicle What are some questions you should ask yourself before buying a vehicle? What type is best for me? Operating expenses? Insurance costs? Buy vs Lease What's a fair price? What can I afford? What features do I need?

3. Do I Really Need A Car? Can I afford a car? Purchase price (This is the largest expense) maintenance, oil & gas, repairs, insurance & license (operating costs) Am I mature enough for this responsibility?

4. Factors in Selecting a Car Safety Air bags Crash test stats ABS brakes Comfort Size Fuel efficiency

5. Buying a Used Car Usually no warranty Should test drive/checked by mechanic Find Blue Book value (National Auto Dealer's Assoc Guide)

6. Leasing vs Buying Leasing paying for the "use" of a car a new car every few years Always have car payments Financial penalties for high mileage

7. Buying Paying for the purchase of a car Can have some years where you have no car payments Older cars have more repairs

8. Insurance Basic Auto Insurance in NJ - $5000 property damages per accident/ $15,000 personal injury per accident Protects you against major financial loss Shop around- prices vary from company to company

9. Deductible- the amount you pay for damages Depreciation - a steady drop in the value of the car

10. Types of Insurance Liability - body & property Comprehensive Uninsured/underinsured Collision Medical-payments Towing No-fault

11. Liability Bodily-injury : Pays for claims and lawsuits by people injured as a result of an auto accident caused by you Property-damage: Pays for claims and lawsuits by people whose property is damaged as a result of an accident caused by you

12. Comprehensive Coverage for damage to your car that is not a result of collision Hit an animal/theft/vandalism/fire/flood

13. Uninsured/Underinsured Pays for property damage or bodily injury if you are in an accident caused by an uninsured/underinsured motorist

14. Collision Pays for damages to your vehicle caused by a collision with another car or object

15. Medical Payments Pays for medical costs for you and your passengers who are injured

16. Some states have this because of court backlogs. Your own insurance covers costs - regardless of who is at fault. No Fault

17. Insurance Rates Determined by: Driving record - convictions and moving violations pay more Age - younger pays more usually under 25 More miles driven annually = higher premiums Having safety & antitheft devices

18. Driver Gender- males tend to pay more however the gap is narrowing Marital Status - married = lower premiums Type of vehicle - some popular models tend to be stolen more often & some larger vehicles cause greater damage to vehicles they hit Where you live - rural areas = less premiums Claim record - more frequent claims = higher premiums

19. Assigned-Risk Insurance High premium insurance available to those drivers who have had their insurance cancelled due to a poor driving record Must drive for violation free for several years before qualifying for standard insurance

20. Helping the Environment Mass transportation - moves large numbers of people from place to place - decreasing exhaust emissions Car Pooling - sharing transportation Solar and electric & hybrid powered vehicles