1. Driver Responsibilities Making Informed Choices Topic 1 - Insuring Vehicle Topic 2 - Purchasing Vehicle Topic 3 - Trip Planning Topic 4 - Conserving Natural Resources/Driving Green Driver Responsibilities Making Informed Choices Topic 1 - Insuring Vehicle Topic 2 - Purchasing Vehicle Topic 3 - Trip Planning Topic 4 - Conserving Natural Resources/Driving Green Module Eleven Virginia Department of Education

2. What does the Bureau of Insurance Do for the Citizens of the Commonwealth?

3. Vehicle Ownership Costs  Insurance Costs  Purchase and Financing Costs  Maintenance and Operating Costs  Registration and Inspection Costs

4. Insuring a Vehicle Virginia Law requires proof of financial responsibility Your parents’ policy covers you while you have a learner’s permit If you owe money on your car, the lender may require collision insurance

5. Financial Responsibility Laws $ Minimum liability coverage $ Alternatives to insurance coverage $ Types of proof of financial responsibility $ When you must show proof of financial responsibility $ Penalties for driving without insurance

6. The required minimum liability coverage is: Bodily injury/death of one person $25,000 Bodily injury/death of two or more persons $50,000 Property damage $20,000 Virginia Auto Insurance

7. Virginia Insurance Requireme nts You must show Proof of Financial Responsibility when a police officer asks to see it you have a collision you register your vehicle or renew license plates

8. Penalties for Driving without Proof of Financial Responsibility $500 fine Suspension of your driver’s license Suspension of your vehicle registration Higher insurance premiums for the next 3 years (SR-22) You are responsible for other people’s losses if you caused the crash Virginia Auto Insurance Suspended

9. Declaration Page of Policy The exact name of your insurance company The policy number Your coverage and how much it costs Your deductibles, if any The vehicles insured on the policy, their vehicle identification numbers and their classifications for rating purposes

10. Virginia Personal Auto Policy Seven Types of Coverage Liability Medical Payments Uninsured/Underinsured Motorist Collision Comprehensive Towing and Labor Rental Reimbursement

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

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

13. Uninsured/Underinsured Motorist (UM/UIM) Coverage Pays: Medical expenses Funeral expenses Car repairs Car rental Replacement of damaged contents Covers Covers uninsured/underinsured or hit-and-run motorist expenses You Your family Your passengersRequired? Not by Virginia law, but company must offer it

14. Collision Coverage Pays for: 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. Comprehensive Coverage Pays for: Car repair or replacement after: fire hailstorm theft or other non-collision event theft of rental carCovers: Actual cash value of your carRequired? Not by Virginia law, but often required by car finance companies

16. Towing and Labor Coverage Pays: Towing On site labor charges such as changing a tire Covers: Your car Required? Not required by Virginia law

17. Pays for: A rental car while your car is being repaired after a crash after comprehensive losses Covers: You Your family members Required? Not required by Virginia law Rental Reimbursement Coverage

18. Insurance Costs How are car insurance rates determined? What factors are used in establishing rates? Discounts?

19. Factors Used to Determine Cost of Premium Age, Marital Status, Driving Record, and Grades Highest Rates Male drivers under 25 Unmarried women under 21 Type of Car Highest for luxury, high-performance, and sports cars 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

20. Factors Used to Determine Cost of Premium Your Deductibles Your share of the cost of a collision or comprehensive claim You can reduce your premium by raising your deductiblesSurcharges Penalties added for crashes and certain traffic violationsDiscounts Some are required by the state, while others are incentives offered by insurance companies

21. Discounts for Education and Car Equipment (Some insurance companies offer the following discounts) Auto Insurance DiscountSavings Defensive driving courses Percent off Liability, Collision, and Medical Payments Safety technologies, 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 Premium Discounts

22. Insurance Premium Discounts Insurance Premium Discounts Some insurance companies give discounts for: Some insurance companies give discounts for: Your age and annual mileage driven Your age and annual mileage driven Policy renewal, no claims, good driving record and vehicle safety technologies Policy renewal, no claims, good driving record and vehicle safety technologies A young driver away at school without a car A young driver away at school without a car Full-time college and high school students with a "B" or 3.0 grade point average Full-time college and high school students with a "B" or 3.0 grade point average Cars with automatic daytime running lights Cars with automatic daytime running lights Membership or leadership in certain youth organizations Membership or leadership in certain youth organizations

23. High Risk Drivers High risk drivers (bad driving record) Each company has rules for deciding whether to insure high risk drivers (called “underwriting guidelines”) Usually much harder to get car insurance Pay much higher premiums Assigned-risk drivers Virginia Auto Insurance Plan requires all insurance companies to take some high risk drivers High risk drivers are assigned to an insurance company by the state Surcharges are added to the premium for at least 3 years

24. Crashes or Violations Surcharges Premium MAY increase by : One collision (at-fault) in 36 months 40% Two collisions 35% Three collisions 60% Added for each moving violation (Surcharges assessed for certain traffic violations) Varies 15% Involuntary manslaughter 60% Driving under the influence 60% Criminally negligent driving 60% You will Pay More for a Bad Driving Record

25. Paying for Insurance Many people can’t afford to pay their car insurance premium in one installment Insurance companies must offer installment plans Look for insurance companies that offer installment plans with low interest rates and fees Agents and insurers may use finance companies that will lend you money at higher interest rates to pay insurance premiums

26. 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 the monthly payment? How many payments do I make? How much is the total payment? (annual or six-month premium plus interest )

27. INSTALLMENT PLAN WORKSHEET Agent or Company Names ____________________________ Interest Rate, if any ____________________________ Down Payment ____________________________ Monthly Payment ____________________________ Number of Months ____________________________ Total you pay ____________________________ Compare the installment packages offered by agents and companies Paying for Insurance

28. 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, insurance company can cancel the policy but: Must give 10 days notice before canceling Must refund unearned premium Note: Cancellation for non-payment is effective immediatelyNon-renewal Company will not offer a new contract Request Reasons in Writing Why company canceled the policy Why company will not renew the policy

29. What Now? Know what your policy requires you to do after a collision Your uninsured motorist coverage pays for hit- and-run collisions only if the crash is reported to the police After the Collision

30. Stop as close to the scene as possible Check for injuries - make sure your passengers and those in the other vehicle(s) are OK if anyone is injured or killed, contact police immediately if no one is injured and your vehicle can be moved, move it from blocking the traffic flow Notify police Warn oncoming traffic Exchange information provide insurance information obtain information from others involved and witnesses After the Collision

31. What should you do when you are involved in a crash and have a claim? If the company rejects your claim or pays only part of it, request an explanation for that decision Notify your insurance company promptly Your agent can help you file the claim correctly Keep a copy of the forms for your records After the Collision

32. Topic 2 - Purchasing a Vehicle New or Used? Do I Really Need It? What Safety Features Do I Need? How Much Will it Cost? How Economical is It? What Options Do I Need?

33. Purchase Price x Interest Rate x Length of Financing Purchase Price $10,000 Interest Rate 8 percent Length of Finance 24 months Purchase Price + Sales Taxes + Interest = Total Price Approximately $11,592.00 What will you pay each month? Calculating Your Monthly Payment

34. Price + taxes + interest # of months = Monthly payment Cost of Vehicle $10,000.00 3.5% Titling Tax 8% Interest on Loan (based on unpaid balance) Loan is over 24 Months $10,000.00 +$350.00 +$1,200.00 * 24 = $481.25 * 1 st year interest = $10,000 x.08 = $800 *2 nd year interest = $5,000 x.08 = $400 Calculating Monthly Payment

35. Topic 3 - Planning an Extended Trip Preparing the vehicle Loading considerations Basic and emergency equipment needs Personal preparation

36. Plan the Route Identify route Use websites which give directions Know route numbers, entrance and exit numbers Consider rest, fuel and food stops, construction and time of day GPS can be useful, but set before driving

37. Prepare and Maintain the Vehicle  Before traveling check:  Windshield, windows and wiper blades  Lights  Tires  Fluid levels, belts, hoses and brakes  Engine compartment (tune-up, oil change)  Follow vehicle manufacturer’s maintenance schedule and have vehicle repaired if any problems are detected

38. Pack Emergency Equipment  Be prepared for anything  Maps with routes marked  Flashlight, first-aid kit  Tools  Jack, spare tire, lug wrench, jumper cables  Tow line, gloves, blanket, radiator coolant, anti-freeze and windshield wiper fluid  Window scraper, chains and warm clothing

39. Do not overload vehicle Load trunk area first and secure loose items 150 lbs. per belted seat plus 125-175 for luggage Car-top carriers affect braking and steering Load the Vehicle Properly

40. Driver Readiness for a Trip Driver Readiness for a Trip Get plenty of sleep Drive during waking hours Take breaks and do not drive for long periods Be aware of “highway hypnosis” and “down time” Be prepared for anything Make reservations in advance Let others know where you are staying Determine costs

41. Trip Costs Trip Costs Lodging (hotel/motel) Meals Tolls Possible Repairs Fuel Calculating Fuel Costs - 1,500 mile trip - Car gets 22 mpg - Fuel costs $2 per gallon Formula: 1,500 x $2 = $136.36 22

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

43. Destination Driving List the route numbers (Example: I-95 North) How long it will take? How many miles? Location of rest stops? Cost of fuel? Using a Virginia map, plan a trip from your home to a point in Virginia more than five hours away ( Your car gets 20 mph - cost of fuel is $3/gallon)

44. Accelerate smoothly Drive at moderate speeds Avoid unnecessary braking and try to anticipate the traffic ahead Avoid excessive idling Join a car pool for commuting to and from school or work Keep your vehicle in good working order Recycle old oil and fluids Recycle old vehicle parts Conserving Virginia’s Natural Resources

45. Disposal of Vehicle Parts and Fluids Hazardous substances need to be disposed of in the proper manner - not just dumped onto the ground or poured down the drain OLD Oil take items to the nearest hazard waste collection center or other appropriate collection location such as an automotive repair shop or contact your local health department to find an appropriate drop-off location Protecting the Environment

46. Call your local recycling center, service station, sanitation center, or local health department to review proper recycling procedures Read all labels carefully to ensure you are using the correct container Monitor and fix automotive fluid leaks Use a funnel for pouring automotive fluids to prevent spills Catch any drained fluid and store in a container, or a well- sealed and labeled plastic jug Never discard used automotive fluid in sinks, storm drains, the garbage, or on the ground Store automotive fluids separately — NEVER mix them together Tips for protecting the environment Conserving Virginia’s Natural Resources

47. Topic 4 Conserving Natural Resources/Driving Green

48. Drive Fuel Efficient Cars! Ways to Save Gas…

49. Gasoline Vehicle Label

50. Premium or Regular Fuel? Unless your vehicle is designed for premium fuel or knocks severely with regular fuel, there is no benefit from using premium fuel over regular gas

51. Five Driving Techniques That Save Gas

52. Reduce Cargo Weight

53. Avoid Excessive Idling Did you know that idling can use a quarter to a half gallon of fuel per hour?

54. Use Cruise Control Maintaining a constant speed saves gas

55. Use Overdrive Gears This reduces your engine speed and saves gas What are the overdrive gears in this car?

56. Keep Your Engine Tuned A properly maintained engine can improve gas mileage by as little as 4 percent to as much as 40 percent

57. Keep Tires Properly Inflated Properly inflated tires are safer, last longer, and have less rolling resistance which improves gas mileage

58. Check your owner’s manual to improve your gas mileage by 1–2 percent by using the manufacturer's recommended grade of motor oil Use the Recommended Grade of Motor Oil

59. Hybrid cars run on two or more types of power Hybrid Electric Vehicles combine a fuel-efficient gas engine with an electric motor and a battery Plug-in Hybrid Electric Vehicles are hybrid vehicles with an added feature: the ability to plug the car into any 120-volt outlet to charge the battery Striving Toward Sustainability

60. Commuting and Public Transportation

61. Plan and Combine Trips Plan and combine errands into one trip

62. Roof-Top Carriers May decrease your gas mileage by 5 percent

63. Driving in Hot Weather Hot weather can actually increase your fuel economy Running your car's air conditioning is the main contributor to reduced fuel economy in hot weather Driving with your windows down can also reduce fuel economy What can I do to improve my fuel economy in hot weather?

64. Drive Less - Walk and Bike More! Reduce the environmental impact of driving

65. Please