auto insurance financial responsibility law do you have to have insurance? why? what kind? 2 major...
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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.