Licensing and Vehicle Ownership

Chapter 19

19-1 The Licensing Process The Driver’s License

First taste of freedom, but it comes with responsibility

It is a privilege, and can be taken away if you fail to meet your obligations as a driver

Functions of a driver’s license Proof of legal ability to drive a vehicle Proof of identity If you move to a different state, you must have a valid

driver’s license in the state that you live in

The Department of Motor Vehicles Known as the DMV

Other names: Motor Vehicle Association (MVA), Bureau of Motor Vehicles (BMV)

This is where you will be issued your license Instances in which you could be denied a license:

Not being legal age Having history of irresponsible driving Not being a resident of the jurisdiction Having a physical or mental condition making it unsafe

to drive Failing written test or road test Lying on your license application Failing to have paid an outstanding traffic fine Chronically abusing alcohol or drugs as determined by a

court Failing to understand road signs Refusing to surrender a license from another jurisdiction

in return for your new one Having your license suspended or revoked

Licensing Age Restrictions

must be 16 years of age or older 15 for a learner’s permit

Types of Licenses Learner’s Permit Restricted License A license with parents’ approval needed until you

are 18 Upon proof of independence Regular license

Driver’s License Testing Written Test

Evaluates your knowledge of driving fundamentals If you fail, you can take it again

Vision Test Color test, visual acuity, depth perception

Road Test After receiving your license…

Don’t just take off and drive by yourself Put off challenges, such as long trips, dense traffic,

etc.

19-2 Insuring Your Vehicle Financial Responsibility Laws

Regulations making drivers responsible for any damage to property or any personal injury that they may cause while driving

Must have vehicle insurance Insurance Policy

Written contract between the driver and the insurance company that outlines our coverage and how much the insurance company is liable for

Must be able to show verification if you are pulled over – can be ticketed – but if you prove you have insurance, ticket will be dropped

Types of Vehicle Insurance Insurance is acquired from an insurance

company by paying a premium A specified amount of money for a length of

time, usually 6 months or a year If your vehicle is damaged or stolen or if you

are injured in a collision in your vehicle, you can make a claim to your insurance company A report filed by an insured person against an

insurance company to recover losses covered by his or her policy Includes people filing against another person

Deductible Amount of money that you must pay before the

insurance company begins paying for you on a claim or demand

Higher deductibles = lower premiums Once your deductible is met, insurance pays up

to limit specified in your policy

Liability Insurance Mandatory in Illinois

Bodily Injury Liability Pays for medical costs and the pain and suffering

associated with injuries and death to other persons when you are at fault

Property Damage Liability Covers the repair or replacement of other people’s

property damaged by your vehicle Both of these will also pay your legal fees and

court costs in the event you are sued by another driver or pedestrian

Illinois Insurance type and minimum amount required: You are in compliance with the mandatory

insurance law if you have vehicle liability insurance in the following minimum amounts: $20,000 - injury or death of one person in an

accident $40,000 - injury or death of more than one person

in an accident $15,000 - damage to property of another person

Enforcement Enforcement of the mandatory insurance law is accomplished

through a random questionnaire sampling process and the issuance of traffic tickets.

If the computer randomly selects your vehicle, you will receive a questionnaire asking for the name of your insurance company and policy number. Your answers will be verified with the company you name. If you do not have insurance or fail to return the questionnaire with the requested information, your license plates will be suspended.

If you are stopped for a traffic violation or involved in an accident, a law enforcement officer may issue a traffic citation if you are unable to provide evidence of insurance. If convicted, your license plates will be suspended and you will face the following fines:

minimum $500 fine for driving uninsured minimum $1,000 fine for driving a vehicle while the license plates are

suspended for a previous insurance violation

Vehicles Affected Liability insurance is required for all motor

vehicles that must display license plates and are being driven, including: Cars Vans Motorcycles Recreational Vehicles Trucks Buses Trailers are not required to have liability insurance.

Collision Insurance Covers the cost of repairing or replacing your

vehicle at its current market value when it is damaged in a collision

Also subject to deductible and coverage limits Usually pays for damage even if you are

responsible or if your car is damaged while parked in a lot or on the street

Comprehensive Insurance Protects you from the loss of your vehicle or

accidental damages to your vehicle caused by anything except a collision Pays for repair or for replacement costs up to the

current market value of the vehicle, less the amount of deductible stated in the policy

In some places, the insurance company of the driver at fault pays for costs arising from injuries and/or property damage to others

No-Fault Insurance Requires that the insurer pays the

owner and passengers for certain damages or personal injury claims regardless of who is at fault in a collision

Some places, driver’s are required to carry uninsured/underinsured motorist coverage Protects the insured driver and any

passengers from damages resulting from a collision caused by a hit-and-run driver or by a driver who either does not have liability insurance or does not have enough to cover all losses for which he or she is held responsible

Insurance Rates Rates are determined by statistics that indicate the likelihood

that certain groups of people will be involved in a crash Factors include:

Driving record Age Miles driven Gender Marital status Residence Type of vehicle

Ways to Reduce Insurance Rates Discounts are given for drivers who:

Have no claims or moving violations for several years Have more than one vehicle insured Have factory-installed airbags or automatic safety belts Have a car with an anti-theft device Carpool Are students that maintain a “B” average in school

Exclusions Describes the conditions under which certain

types of injury or damage are not covered For example,

Liability policy may exclude coverage if an injury or damage is caused by another person who uses an insured vehicle without the insured owner’s permission

Filing a Claim Must notify the insurance company promptly Notify police of the situation

If police have not been notified: your claim can be denied May not get full amount of the claim

A claim’s adjuster will come and document damages done and make and estimate of the cost

19-3 Your Driving Record A record maintained by the jurisdiction in

which you live of all your motor vehicle violations that have occurred in all jurisdiction

Your license can be revoked for a violation in another jurisdiction Communication between jurisdictions, such as law

enforcement officials, the courts, and DMVs

The Demerit System DMV keeps a record of all moving violations

that a person accrues over their lifetime DMV puts points onto your record Points will stay on your record for a specified

period of time based on the severity of the offense More serious the offense, more points charged to

your record Example: the number of demerit points for

speeding often depends on how many miles per hour over the posted speed limit you were found to be driving

License Suspension and Revocation Suspension

Temporary loss for a specified period Revocation

Cancels the legal permit to drive for a specified period of time

After the revocation period expires, you must apply for a new license

Habitual Offender Revocation can be made permanent for offenders

that commit offenses repeatedly

License Suspension and Revocation http://www.cyberdriveillinois.com/publications/

pdf_publications/dsd_a112.pdf

19-4 Buying and Selling a Vehicle New vs. Used

Warranty Written guarantee that the car manufacturer or dealer will

repair or replace any defective parts or systems within a set amount of miles or years

New cars Longer warranties Hold up better under heavy use or long distance traveling Parts are easier to find

Used cars Lower prices

Depreciation The decline of a vehicle’s resale value over time Depends on the vehicle condition, mileage, and options

Cheaper to insure

Buying a New Car Shop around

Go to several different dealerships and find out what is available

Find out exactly what you are going to have to pay to drive one off the lot

Keep in mind – most car salesman are paid by commission and can be aggressive in going after business

Be polite but firm If you have questions or don’t understand

something, ask

Buying a New Car List Price

“retail price” manufacturer’s suggested retail price (MSRP)

for factory-installed options “sticker price”

List price plus destination charges and additional options and services provided by the dealer Destination charge – cost of shipping the

vehicle from the manufacturer to the dealership Preparation charge – prepare the vehicle for

sale by tuning up the engine, checking emissions, and performing other services

Will often not include sales tax or registration fees

Buying a New Car Rebate

Special payment to the customer to boost sales on certain models

Make sure to consider the warranty Usually 3 years or 36,000 miles to 5 years 60,000

miles

Buying a Used Car More time consuming and complicated that

buying a new car Make sure you are not getting someone else’s

problem Inspect the car with a friend

Go in the daytime when you can see well Test drive several times Have a mechanic do a diagnostic check Get the CARFAX report

Gives you a listing of previous owners Call and get their opinion of the vehicle

Lists any and/or all issues that have involved the car Collisions, mileage, service visits

Financing Your Vehicle Purchase price

Amount of money that the dealer or owner is willing to accept

Cash = No Interest Auto Loans

Total cost of the car depends on: Interest rate Amount borrowed Length of time required for repayment

Usually run 2-5 years in duration Larger the down payment, lower the monthly

payment and less you will have to pay in the long run

Title and Registration Title

Document showing proof of ownership You do not receive the title until you purchase the

car (your last payment) Registration

Paid each year

Selling Your Vehicle It is important to take care of

your vehicle in the event you want to sell it

Clean the inside and out Check Kelly Blue Book for

estimates on worth of your vehicle

Make sure you have all your money before giving up the title to vehicle

Trade-Ins When trading your car in, you will

get a new car, but now owe on the old car and the new one