Chapter 1713 5 Buying and Owning a Vehicle
Chapter 17/13. 5 Buying and Owning a Vehicle and Insurance
For Your Quiz l You should be able to explain the following: l List and explain the different types of insurance coverages available l List the three types of insurance required by the State of Illinois for driving l List the factors used in determining your insurance premiums l Define premium l Define deductible l List and explain the four major expenses involved in purchasing a vehicle
Buying a Vehicle l Can you afford it? l Consider: l Purchase Price l Depreciation l Financing l Other Costs
Other things to consider l Vehicle Size l Engine Size and Types l Transmission l Optional Equipment
Leasing a Vehicle l Leasing l Things to consider: l l Contract length and terms End of lease options Return and lease l Purchase l Return with no obligations l
Buying a Used Vehicle l l Private vs. Dealer How much should you pay? l l l Choosing a vehicle l l NADA Bluebook Kelley Bluebook CARFAX Vehicle “Walk-around” Test Drive Closing the Deal
Car Insurance l Terms to know: l l l Financial Responsibility Laws Premium Deductible
Types of Car Insurance l Liability Insurance l l l l Bodily Injury Liability Insurance Property Damage Liability Insurance Uninsured Motorist/Underinsured Motorist Insurance Collision Insurance Comprehensive Insurance Medical Payments Insurance Towing Insurance Rental Insurance
How do they determine your rates? l l Based on statistics Look at the following categories: l l l l Driving Record Age Miles Driven Driver Gender Marital Status Type of Vehicle Where You Live and Driver’s Claim Record
Ways to reduce your premiums l l Good Student Discount Good Driver Discount Multiple Policies Safety Features/Anti. Theft Devices
Example costs for teen insurance Car – Pontiac Grand Am 6 cylinder, 4 door Full Coverages: $500 deductible Liability Limits: 100/300/100 Parents = $328. 00 every 6 months Daughter: l l l l Part time = $526. 00 PT Good Student = $475. 00 Full Time = $731. 00 FT GS = $660. 00 FT GS 1 st ticket = $685. 00 FT GS 1 st ticket, 1 collision = $1, 064. 00 FT GS 2 nd ticket, 1 collision = $1, 233. 00 Son: l l l l Part time = $736. 00 PT Good Student = $592. 00 Full Time = $1, 096. 00 FT GS = $880. 00 FT GS 1 st ticket = $912. 00 FT GS 1 st ticket, 1 collision = $1, 417. 00 FT GS 2 nd ticket, 1 collision = $1, 640. 00
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