Auto Insurance Financial Responsibility Law Do you have to have insurance? Why? What kind? 2 Major...

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Transcript of Auto Insurance Financial Responsibility Law Do you have to have insurance? Why? What kind? 2 Major...

Auto InsuranceFinancial Responsibility Law

Do you have to have insurance?Why?What kind?

2 Major Types of CoverageProperty (Comprehensive and Collision) Bodily Injury (Medical Payments)

Two Major Types of PoliciesFull**Liability

Body Injury CoverageBody Injury Liability

$100,000/$300,000Medical Payments

Pays medical/funeral costs of injuredUninsured Motorist

Protects you if the person at fault doesn’t have insurance or not enough to cover your damages

Property Damages CoverageProperty Damage Liability

Damage of others: Car, House, Telephone PoleCollision Insurance

Pays for your vehicle damages (even if at fault)What policy is this covered under?

Comprehensive InsuranceFireTheftLightningHailVandalism

Other Things to ConsiderDeductableCar vs. CoverageAffordability

What affects this?Age……what else????

Provider

Auto Insurance AssignmentCreate a chart that compares 3 different

auto insurance coverageOne person in group MUST have a car

Buying a carThings you’ll need to know first:

1. Exact price paying for car2. Amount you finance (cash down?)3. Finance Charge4. APR5. # of Payments6. Amount of Payments7. Total Price (Price + Interest)

Other things to consider

1. Worth before buying being stuck with payments and broke car

2. Warranties3. Payment you can afford4. Vehicle maintenance (foreign cars vs.

domestic)5. Gas mileage6. Trade in value vs. selling to private seller7. Consumer Reports8. Future Value

4 major car termsInvoice Price

What dealer pays for vehicle Usually lower than stated because of rebates,

incentives, etcBase Price

Price of car with basic optionsMSRP Price

All costs added togetherRequired by law on new cars

Dealer Sticker PriceMSRP with extra options (leather, etc)

Leasing instead of buyingSpecific # of monthsSpecific # of milesTurn it in or Purchase VehicleBe careful of:

Excessive Mile chargesExcessive Damage chargesEnding lease earlyYou don’t OWN a car

AssignmentCar Buying Individual AssignmentFind 3 cars, 2 within 25k budget, 1 as

expensive as you want and find the monthly payments.