Virginia Department of Education Module Eleven Driver Responsibilities

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

What does the Bureau of Insurance Do for the Citizens of the Commonwealth? ©Virginia Department of Education

Vehicle Ownership Costs Insurance Costs Purchase and Financing Costs Maintenance and Operating Costs Registration and Inspection Costs ©Virginia Department of Education

Insuring a Vehicle üVirginia Law requires proof of financial responsibility. üYour parents’ policy covers you while you have a learner’s permit. üIf you owe money on your car, the lender may require collision insurance. ©Virginia Department of Education

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. ©Virginia Department of Education

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

Virginia Insurance Requirements You must show Proof of Financial Responsibility when: ü a police officer asks to see it. ü you have a collision. ü you register your vehicle or renew license plates. ©Virginia Department of Education

Virginia Auto Insurance Penalties for Driving without Proof of Financial Responsibility: ü $500 fine. ü Suspension of your driver’s license. ü Suspension of your vehicle registration. ü Higher insurance premiums for the next 3 years (SR 22). ü You are responsible for other people’s losses if you caused the crash. Su spe nde d ©Virginia Department of Education

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

Virginia Personal Auto Policy Seven Types of Coverage ü Liability ü Medical Payments ü Uninsured/Underinsured Motorist ü Collision ü Comprehensive ü Towing and Labor ü Rental Reimbursement ©Virginia Department of Education

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

Medical Payments Coverage Pays: ü Medical expenses ü Funeral expenses Covers: ü Your family ü Your passengers Required? ü Not required by Virginia law ©Virginia Department of Education

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

Collision Coverage Pays for: ü Your car repair. ü Your car replacemen. t Covers: ü Your car, ü Regardless of driver or who was at fault. Required? ü Not by Virginia law, but often required by the finance company that loaned you the money to buy the car. ©Virginia Department of Education

Comprehensive Coverage Pays for: Car repair or replacement after: ü fire ü hailstorm ü theft or other non-collision event ü theft of rental car. Covers: ü Actual cash value of your car. Required? ü Not by Virginia law, but often required by car finance companies. ©Virginia Department of Education

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

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

Insurance Costs ü How are car insurance rates determined? ü What factors are used in establishing rates? ü Discounts? ©Virginia Department of Education

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

Factors Used to Determine Cost of Premium Your Deductibles ü Your share of the cost of a collision or comprehensive claim. ü You can reduce your premium by raising your deductibles. Surcharges Penalties added for crashes and certain traffic violations. Discounts Some are required by the state, while others are incentives offered by insurance companies. ©Virginia Department of Education

Premium Discounts for Education and Car Equipment (Some insurance companies offer the following discounts) Auto Insurance Discount Savings 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 ©Virginia Department of Education

Insurance Premium Discounts ü Some insurance companies give discounts for: ü Your age and annual mileage driven. ü Policy renewal, no claims, good driving record and vehicle safety technologies. ü A young driver away at school without a car. ü Full-time college and high school students with a "B" or 3. 0 grade point average. ü Cars with automatic daytime running lights. ü Membership or leadership in certain youth organizations ©Virginia Department of Education

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

You will Pay More for a Bad Driving Record Crashes or Violations Surcharges Premium MAY increase by: One collision (at-fault) in 36 months 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% ©Virginia Department of Education

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

Paying for Insurance Ask the agent: ü Who will provide my installment plan? - the insurance company, or - a premium finance company. ü If it is a premium finance company, what is the interest rate? ü How much is the down payment? ü How much is the monthly payment? ü How many payments do I make? ü How much is the total payment? (annual or six-month premium plus interest ) ©Virginia Department of Education

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

Losing Your Insurance Cancellation üFirst 60 days, company cancel for any reason, including a ticket or a collision. üAfter policy is in effect more than 60 days, insurance company cancel the policy but: • Must give 10 days notice before canceling. • Must refund unearned premium. Note: Cancellation for non-payment is effective immediately. Non-renewal üCompany will not offer a new contract. Request Reasons in Writing üWhy company canceled the policy. üWhy company will not renew the policy. ©Virginia Department of Education

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

After the Collision ü Stop as close to the scene as possible. ü 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. ü Notify police. ü Warn oncoming traffic. ü Exchange information: • provide insurance information. • obtain information from others involved and witnesses. ©Virginia Department of Education

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

Topic 2 - Buying a Vehicle ü New or Used? ü Do I Really Need It? ü What Safety Features Do I Need? ü How Much Will it Cost? ü How Economical is It? ü What Options Do I Need? ©Virginia Department of Education

Calculating Your Monthly Payment Purchase Price x Interest Rate x Length of Financing Purchase Price Interest Rate Length of Finance $10, 000 8 percent 24 months Purchase Price + Sales Taxes + Interest = Total Price Approximately $11, 592. 00 What will you pay each month? ©Virginia Department of Education

Calculating 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 Price + taxes + interest # of months = Monthly payment $10, 000. 00 +$350. 00 +$1, 200. 00* 24 *1 st year interest = $10, 000 x. 08 = $800 *2 nd year interest = $5, 000 x . 08 = $400 ©Virginia Department of Education = $481. 25

Topic 3 - Planning an Extended Trip ü Preparing the vehicle. ü Loading considerations. ü Basic and emergency equipment needs. ü Personal preparation. ©Virginia Department of Education

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. ©Virginia Department of Education

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. ©Virginia Department of Education

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, antifreeze and windshield wiper fluid Window scraper, chains and warm clothing ©Virginia Department of Education

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

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. ©Virginia Department of Education

Trip Costs ü Lodging (hotel/motel) ü Meals ü Tolls ü Possible Repairs ü Fuel ü Calculating Fuel Costs - 1, 500 mile trip - Car gets 22 mpg - Fuel costs $2 per gallon Formula: 1, 500 x $2 = $136. 36 22 ©Virginia Department of Education

Reading a Road Map State Maps üNorth orientation üLegend (explains the markings and symbols on the map) üTown/City index üCoordinates Letters/numbers reference location üMaps of major cities üDetermining distances Map scale Mileage chart ©Virginia Department of Education

Destination Driving 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) ü List the route numbers (Example: I-95 North). ü How long it will take? ü How many miles? ü Location of rest stops? ü Cost of fuel? ©Virginia Department of Education

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

Protecting the Environment 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. ütake items to the nearest hazard waste collection center or other appropriate collection location such as an automotive repair shop, or ücontact your local health department to find an appropriate drop-off location. ©Virginia Department of Education OLD Oil

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

Fuel Efficient Driving Topic 4 ©Virginia Department of Education

Ways to Save Gas… Drive Fuel Efficient Cars! ©Virginia Department of Education

Gasoline Vehicle Label ©Virginia Department of Education

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. ©Virginia Department of Education

Five Driving Techniques That Save Gas ©Virginia Department of Education

Reduce Cargo Weight ©Virginia Department of Education

Avoid Excessive Idling Did you know that idling can use a quarter to a half gallon of fuel per hour? ©Virginia Department of Education

Use Cruise Control Maintaining a constant speed saves gas. ©Virginia Department of Education

Use Overdrive Gears This reduces your engine speed and saves gas What are the overdrive gears in this car? ©Virginia Department of Education

Keep Your Engine Tuned A properly maintained engine can improve gas mileage by as little as 4 percent to as much as 40 percent. ©Virginia Department of Education

Keep Tires Properly Inflated Properly inflated tires are safer, last longer, and have less rolling resistance which improves gas mileage. ©Virginia Department of Education

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

Striving Toward Sustainability • 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. ©Virginia Department of Education

Commuting and Public Transportation ©Virginia Department of Education

Plan and Combine Trips Plan and combine errands into one trip. ©Virginia Department of

Roof-Top Carriers May decrease your gas mileage by 5 percent. ©Virginia Department of Education

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