Module 10 2004

Driver Responsibilities:Driver Responsibilities:
Making Informed ChoicesMaking Informed Choices
Topic 1 --Topic 1 -- Insuring VehicleInsuring Vehicle
Topic 2 --Topic 2 -- Purchasing VehiclePurchasing Vehicle
Topic 3 --Topic 3 -- Trip PlanningTrip Planning
Topic 4 –Topic 4 – Virginia’s Conservation ConcernsVirginia’s Conservation Concerns
Module Ten TransparenciesModule Ten Transparencies
VirginiaVirginia Department of EducationDepartment of Education
Provided in cooperation with the Virginia Department of Motor VehiclesProvided in cooperation with the Virginia Department of Motor Vehicles

Ownership ResponsibilitiesOwnership Responsibilities
• Insurance CostsInsurance Costs
• Purchase and Financing CostsPurchase and Financing Costs
• Maintenance and Operating CostsMaintenance and Operating Costs
• Registration and Inspection CostsRegistration and Inspection Costs
T – 10.1
Topic 1 Lesson 1
Costs:

Insuring a CarInsuring a Car
VA Law requires you toVA Law requires you to
provide proof of financialprovide proof of financial
responsibilityresponsibility
T – 10.2
Topic 1 Lesson 1
If you still owe money onIf you still owe money on
your car, your lenderyour car, your lender
may require collisionmay require collision
insuranceinsurance
Your parents’ policy coversYour parents’ policy covers
you while you have a learner’syou while you have a learner’s
permitpermit

Financial Responsibility LawFinancial Responsibility Law
$ Minimum liability coverageMinimum liability coverage
$ Alternatives to insurance coverageAlternatives to insurance coverage
$ Types of proof of financial responsibilityTypes of proof of financial responsibility
$ When you must show proof of financial responsibilityWhen you must show proof of financial responsibility
$ Penalties for driving without insurancePenalties for driving without insurance
T – 10.3
Topic 1 Lesson 2

Required Minimum Liability Coverage in VARequired Minimum Liability Coverage in VA
 $25,000 for bodily injury / death one person$25,000 for bodily injury / death one person
 Up to $50,000 for bodily injury / death two orUp to $50,000 for bodily injury / death two or
more personsmore persons
 $20,000 for property damage$20,000 for property damage
Virginia Auto InsuranceVirginia Auto Insurance
T – 10.4
Topic 1 Lesson 2

You must show Proof ofYou must show Proof of
Financial ResponsibilityFinancial Responsibility
when you:when you:
T – 10.5
Topic 1 Lesson 2
 are asked for it by a police officer;are asked for it by a police officer;
 have a collision; orhave a collision; or
 register your vehicle or renew its plates.register your vehicle or renew its plates.

Penalties for Driving without Proof ofPenalties for Driving without Proof of
Financial ResponsibilityFinancial Responsibility
 $500 fine$500 fine
 Suspension of your driver’sSuspension of your driver’s
licenselicense
 Suspension of your vehicleSuspension of your vehicle
registrationregistration
 Higher insurance premiumsHigher insurance premiums
for the next 3 years (SR-22)for the next 3 years (SR-22)
 If you caused the crash, youIf you caused the crash, you
are responsible for otherare responsible for other
people’s lossespeople’s losses
T – 10.6
Suspended
Suspended
Topic 1 Lesson 2

Facts on the Declaration Page of Your PolicyFacts on the Declaration Page of Your Policy
T – 10.7
Topic 1 Lesson 3
 The exact name of your insurance companyThe exact name of your insurance company
 The policy numberThe policy number
 Your coverage and how much it costsYour coverage and how much it costs
 Your deductibles, if anyYour deductibles, if any
 The vehicles insured on the policy, their vehicleThe vehicles insured on the policy, their vehicle
identification numbers and their classificationsidentification numbers and their classifications
for rating purposesfor rating purposes

Virginia Personal Auto PolicyVirginia Personal Auto Policy
Seven Types of CoverageSeven Types of Coverage
 LiabilityLiability
 Medical PaymentsMedical Payments
 Uninsured/Underinsured MotoristUninsured/Underinsured Motorist
 CollisionCollision
 ComprehensiveComprehensive
 Towing and LaborTowing and Labor
 Rental ReimbursementRental Reimbursement
T – 10.8
Topic 1 Lesson 3

Liability CoverageLiability Coverage
Pays:Pays:
 Other people’s medicalOther people’s medical
expensesexpenses
 Other people’s auto repairsOther people’s auto repairs
 Property damageProperty damage
Covers:Covers:
 YouYou
 Your familyYour family
 Others driving with yourOthers driving with your
permissionpermission
Required?Required?
 Yes, required by Virginia lawYes, required by Virginia law
T – 10.9
Topic 1 Lesson 4

Medical Payments CoverageMedical Payments Coverage
Pays:Pays:
 Medical expensesMedical expenses
 Funeral expensesFuneral expenses
T – 10.10
Covers:Covers:
 YouYou
 Your familyYour family
 Your passengersYour passengers
Required?Required?
 Not required by Virginia lawNot required by Virginia law
Topic 1 Lesson 4

Uninsured/UnderinsuredUninsured/Underinsured
Motorist (UM/UIM) CoverageMotorist (UM/UIM) Coverage
Pays:Pays:
 Medical expenses
 Funeral expenses
 Car repairs
 Car rental
 Replacement of damaged contents
T – 10.11
Topic 1 Lesson 4
Covers:Covers: (if hit by an uninsured/underinsured
or hit-and-run motorist)
 You
 Your family
 Your passengers
Required?Required?
 Not by Virginia law, but company must offer

Collision CoverageCollision Coverage
T – 10.12
Topic 1 Lesson 4
Pays:Pays:
Your car repair
Your car replacement
Covers:Covers:
Your car
Regardless of driver or
who was at fault
Required?Required?
Not by Virginia law, but
often required by the
finance company that
loaned you the money to
buy the car

Comprehensive CoverageComprehensive Coverage
Pays:Pays:
Car repair or replacement after:
fire
hailstorm
theft or other non-collision event
rental car after theft
Covers:Covers:
Actual cash value of your car
Required?Required?
Not by Virginia law, but often required by
car finance companies
T – 10.13
Topic 1 Lesson 4

Towing and Labor CoverageTowing and Labor Coverage
Pays:Pays:
TowingTowing
On site labor charges such asOn site labor charges such as
changing a tirechanging a tire
When your car is disabledWhen your car is disabled
Covers:Covers:
Your carYour car
Required?Required?
Not required by Virginia lawNot required by Virginia law
T – 10.14
Topic 1 Lesson 4

Rental Reimbursement CoverageRental Reimbursement Coverage
Pays:Pays:
A rental car while your car is being repaired
after a crash
after comprehensive losses
Covers:Covers:
You
Your family members
Required?Required?
Not required by Virginia law
Car Rental
Company
T – 10.15
Topic 1 Lesson 4

Insurance CostsInsurance Costs
 How are car insurance rates determined?How are car insurance rates determined?
 What factors are used in establishingWhat factors are used in establishing
rates?rates?
 Discounts?Discounts?
T – 10.16
Topic 1 Lesson 5

Factors used to determine your premium:Factors used to determine your premium:
T – 10.17
Topic 1 Lesson 5
Type of CarType 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 ratesCollision and comprehensive rates
How you use your car
Higher for cars driven a lot of miles and used for school, work or business
Your Age, Marital Status, Driving Record, and Grades
Highest RatesHighest Rates
Male drivers under 25
Unmarried women under 21
Where you live and drive
Urban counties have more crashes and auto thefts so rates tend to be
higher than those in rural areas

T – 10.18
Topic 1 Lesson 5
Factors used to determine your individual premium:Factors used to determine your individual premium:
Your DeductiblesYour Deductibles
Your share of the cost of a collision or comprehensive claim
You can reduce your premium by raising your deductibles
SurchargesSurcharges
Penalties added for accidents and certain traffic violations
DiscountsDiscounts
Some are required by the state, while others are incentives
offered by insurance companies

T – 10.19
Education and Car Equipment SavingsEducation and Car Equipment Savings
NOTE: SOME insurance companies offer the following
discounts
Premium DiscountsPremium Discounts
Topic 1 Lesson 6
Auto Insurance DiscountAuto Insurance Discount SavingsSavings
Defensive driving coursesDefensive driving courses Percent offPercent off Liability, Collision, and
Medical Payments
Airbags and other passiveAirbags and other passive
restraintsrestraints
Percent offPercent off Medical Payments and
Bodily Injury
Drug / alcohol educationDrug / alcohol education Percent offPercent off Liability, Collision, Medical
Payments, and Bodily Injury
Anti-theft devicesAnti-theft devices May Reduce Comprehensive premium;May Reduce Comprehensive premium;
amount varies by device and county
Two or more cars on a policyTwo or more cars on a policy May reduceMay reduce Liability, Medical PaymentsLiability, Medical Payments
and Collision Insurance costsand Collision Insurance costs

Some companies may give discounts for:Some companies may give discounts for:
• Your age and annual mileage drivenYour age and annual mileage driven
• Policy renewal, no claims, good drivingPolicy renewal, no claims, good driving
record and anti-lock brakesrecord and anti-lock brakes
• A parent or family whose young driver isA parent or family whose young driver is
away at school without a caraway at school without a car
• Full-time college and high school studentsFull-time college and high school students
with a "B" or 3.0 grade point averagewith a "B" or 3.0 grade point average
• Cars with automatic daytime running lightsCars with automatic daytime running lights
• Membership or adult leadership in certainMembership or adult leadership in certain
youth organizationsyouth organizations
T – 10.20
Insurance Premium DiscountsInsurance Premium Discounts
Topic 1 Lesson 6

High Risk DriversHigh Risk Drivers
 High risk drivers (bad driving record)High risk drivers (bad driving record)
 Each company has its own rules for deciding
whether to insure high risk drivers
(Called “underwriting guidelines”)
 Usually much harder to get car insurance
 Must pay higher premiums
 Assigned-risk driversAssigned-risk drivers
 VA 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 for at least 3 years
T – 10.21
Topic 1 Lesson 6

Your Driving Record May COST YouYour Driving Record May COST You
T – 10.22
High Risk DriversHigh Risk Drivers
Topic 1 Lesson 6
Crashes or ViolationsCrashes or Violations SurchargesSurcharges
Your premiumYour premium MAYMAY increase by:increase by:
One collision (at-fault) in 36 months 15%
Two collisions 35%
Three collisions 60%
Each moving violation (speeding, etc.)
(Surcharges will apply for certain traffic violations.)
Varies
Involuntary manslaughter 60%
Driving under the influence 60%
Criminally negligent driving 60%

Paying for InsurancePaying for Insurance
 Many people can’t afford to pay
their car insurance premium in
one installment
 Insurance companies must offer
installment plans
 Agents and insurers may use
finance companies that will
- lend you money at high
interest rates to pay
insurance premiums
 Look for insurance companies
that offer installment plans with
low interest and fees
T – 10.23
Topic 1 Lesson 6
Installment
Plan
Number of Months _____
Interest Rate _____%
________________________
Client
________________________
Company Representative
InstallmentPlan

Ask the agent: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 my monthly payment?
 How many payments do I make?
 How much is my total payment?
(annual or six-month premium plus interest )
T – 10.24
Topic 1 Lesson 6

INSTALLMENT PLAN WORKSHEETINSTALLMENT PLAN WORKSHEET
Agent or Company Names ______________ ______________
Interest Rate, if any ______________ ______________
Down Payment ______________ ______________
Monthly Payment ______________ ______________
Number of Months ______________ ______________
Total you pay ______________ ______________
Use a worksheet to compare the installmentUse a worksheet to compare the installment
packages offered by agents and companiespackages offered by agents and companies
T – 10.25
Topic 1 Lesson 6

Losing Your InsuranceLosing Your Insurance
CancellationCancellation
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.
Non-renewalNon-renewal
Company will not offer a new contract
Request Reasons in WritingRequest Reasons in Writing
Why company canceled the policy
Why company will not renew the policy
T – 10.26
Topic 1 Lesson 6
CANCELEDCANCELED
CANCELED

After the CollisionAfter the Collision
What Now?What Now?
 Discuss 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
T – 10.27
Topic 1 Lesson 7

T – 10.27a
Topic 1 Lesson 7
Involved in a CrashInvolved in a Crash
 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
 Notify your insurance company as soon as possible

T – 10.27b
Topic 1 Lesson 7
What should you do whenWhat should you do when
you are involved in ayou are involved in a
crash and have a claim?crash and have a claim?
If the company rejects your claim or
pays only part of it, you should be given
an explanation for that decision.
 Notify your insurance company promptly
 Your agent can help you file the claim
correctly and completely fill out any forms
needed to verify your claim
 Keep a copy of the forms for your records

Buying a CarBuying a Car
 New or Used?New or Used?
 Why Do I Need It?Why Do I Need It?
 What Safety Features are Needed?What Safety Features are Needed?
 How Much Will it Cost?How Much Will it Cost?
 How Economical is It?How Economical is It?
 What Options Do I Need?What Options Do I Need?
T – 10.28
Topic 2 Lesson 1

Vehicle Price FormulaVehicle Price Formula
Purchase Price x Interest Rate x Length of FinancePurchase Price x Interest Rate x Length of Finance
Purchase Price -Purchase Price - $10,000$10,000
Interest Rate -Interest Rate - 8 percent8 percent
Length of FinanceLength of Finance -- 24 months24 months
Purchase Price + Sales Taxes + InterestPurchase Price + Sales Taxes + Interest
= Total Price Approximately 11,592.00= Total Price Approximately 11,592.00
Your Monthly PaymentYour Monthly Payment
What is your monthly payment?What is your monthly payment?
T – 10.29
Topic 2 Lesson 1

Vehicle Price Monthly Payment FormulaVehicle Price Monthly Payment Formula
Your Monthly PaymentYour Monthly Payment
T – 10.29a
Topic 2 Lesson 1
Price + taxes + interest
# of months
= Monthly payment
Cost of Vehicle $10,000.00Cost of Vehicle $10,000.00
3.5% Titling Tax3.5% Titling Tax
8% Interest on Loan (based on unpaid balance)8% Interest on Loan (based on unpaid balance)
Loan is over 24 Months.Loan is over 24 Months.
$10,000.00 +$350.00 +$1200.00*
24
= $481.25$481.25
*1st
year interest = $10,000 x .08 = $800
*2nd
year interest = $5,000 x .08 = $400

 Preparing the vehiclePreparing the vehicle
 Loading considerationsLoading considerations
 Basic and emergency equipment needsBasic and emergency equipment needs
 Personal preparationPersonal preparation
Planning an Extended TripPlanning an Extended Trip
T – 10.30
Topic 3 Lesson 1

 Lodging (hotel/motel)Lodging (hotel/motel)
 MealsMeals
 TollsTolls
 Possible RepairsPossible Repairs
 FuelFuel
 Calculating Fuel CostsCalculating Fuel Costs
Trip CostsTrip Costs
- 1500 mile trip- 1500 mile trip
- Car gets 22 mpg- Car gets 22 mpg
- Fuel costs $1.60 per gallon- Fuel costs $1.60 per gallon
T – 10.31
Topic 3 Lesson 1
Formula: 1500 x $1.60 = $109.09
22

City MapsCity Maps
North orientation
Legend (explains the markings
and symbols on the map)
Street Index
– Letters/numbers reference
location
Determining Distances
– Map scale
Map ReadingMap Reading
RICHMOND
T – 10.32
Topic 3 Lesson 1

Map ReadingMap Reading
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
T – 10.33
Topic 3 Lesson 1

Destination DrivingDestination Driving
Using a Virginia map, plan a trip from your home to aUsing a Virginia map, plan a trip from your home to a
point in Virginia more than five hours awaypoint in Virginia more than five hours away
T – 10.34
Topic 3 Lesson 1
 List the route numbers you could use with the directionList the route numbers you could use with the direction
of travel (Example: I-95 North)of travel (Example: I-95 North)
 How long it will takeHow long it will take
 The number of milesThe number of miles
 Location of rest stopsLocation of rest stops
 Cost of fuelCost of fuel
(Your car gets 20 mph - cost of fuel is $1.60/gallon)(Your car gets 20 mph - cost of fuel is $1.60/gallon)

Conserving Virginia’s Natural ResourcesConserving Virginia’s Natural Resources
T – 10.35
Topic 4 Lesson 1
When operating your vehicleWhen operating your vehicle
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.

T – 10.35a
Topic 4 Lesson 1
Disposal of Vehicle Parts and FluidsDisposal 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.
OLDOLD
OilOil
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.

T – 10.35b
Topic 4 Lesson 1
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
to prevent spills, use a funnel for pouring automotive fluids
whenever possible, avoid leaving leftover liquids in the container
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 handling toxicTips for handling toxic
substancessubstances

Module 10 2004

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Module 10 2004