TransportatioTransportation Notesn Notes

Independent LivingIndependent Living

Mass transitMass transit

Another name given to public Another name given to public transportation (e.g. city bus).transportation (e.g. city bus).

MaintenanceMaintenance

The ongoing cost of owning a car.The ongoing cost of owning a car.

Sticker PriceSticker Price

Price information affixed to the vehicle Price information affixed to the vehicle window.window.

Book valueBook value

The suggested retail price of the make and The suggested retail price of the make and model of the car.model of the car.

LeaseLease

A contract of terms and temporary A contract of terms and temporary ownership for a vehicle. (Renting the car)ownership for a vehicle. (Renting the car)

Advantages:Advantages: Get new car every few yearsGet new car every few years No sales tax up frontNo sales tax up front

DisadvantagesDisadvantages Never actually own during leasing timeNever actually own during leasing time Always have to repair if problems ariseAlways have to repair if problems arise

DepreciationDepreciation

Decrease or the loss in value of a vehicle.Decrease or the loss in value of a vehicle.

Lemon LawLemon Law

Lemon=a car that fails to meet standards in Lemon=a car that fails to meet standards in quality and performance.quality and performance.

All 50 states have passed this in order to All 50 states have passed this in order to protect the consumerprotect the consumer from being stuck with from being stuck with a “lemon” automobile.a “lemon” automobile.

TitleTitle

Legal documentation of ownership of a Legal documentation of ownership of a vehicle.vehicle.

The bank keeps the title while you’re The bank keeps the title while you’re making monthly paymentsmaking monthly payments

Pre-ownedPre-owned

Another term for a used car.Another term for a used car.

FinancingFinancing

The process of paying for a vehicle. (Car The process of paying for a vehicle. (Car loan)loan)

WarrantyWarranty

A written guarantee given to the purchaser A written guarantee given to the purchaser of a NEW car by the manufacturer or dealer, of a NEW car by the manufacturer or dealer, specifying that the manufacturer will make specifying that the manufacturer will make any necessary repairsany necessary repairs

Before you buy a car…Before you buy a car…

You have to be 18 to buy a car in NE. You have to be 18 to buy a car in NE.

Before you buy a car….Before you buy a car…. Decide what you actually needDecide what you actually need Decide if you’ll buy new or usedDecide if you’ll buy new or used Do your research-be informedDo your research-be informed

Deciding what you really Deciding what you really need….need….

Evaluate when/where you will be driving car Evaluate when/where you will be driving car What are your weather conditions like?What are your weather conditions like? Will you have lots of highway driving or city Will you have lots of highway driving or city

driving?driving?

Timing to buy:Timing to buy: Summer, cheaper SUV’sSummer, cheaper SUV’s Winter, cheaper sports carsWinter, cheaper sports cars

Decide if you’ll buy new Decide if you’ll buy new or used…or used…

UsedUsed More to choose fromMore to choose from Cost lessCost less You need to find out You need to find out

where it’s from and where it’s from and who owned it who owned it previouslypreviously

Doesn’t usually have Doesn’t usually have warranty warranty

Do your research…Do your research…

Get car-fax (history of car)Get car-fax (history of car) Not always available if you buy from owner instead of Not always available if you buy from owner instead of

dealershipdealership

Always test driveAlways test drive Check engine, transmission, sensor lights, etc.Check engine, transmission, sensor lights, etc.

Don’t forget about additional fees:Don’t forget about additional fees: Documentation feeDocumentation fee Sales taxSales tax Registration feesRegistration fees License plates feeLicense plates fee Lincoln=wheel taxLincoln=wheel tax

The average consumer is much more informed than 10 The average consumer is much more informed than 10 years agoyears ago

Financing (car loan)Financing (car loan)

Factors that affect your ability to get a car loan:Factors that affect your ability to get a car loan: Credit historyCredit history Driving recordDriving record

Factors that affect your interest rate on that car Factors that affect your interest rate on that car loan:loan: Credit historyCredit history Driving recordDriving record Type of car: 2-door vs. 4 door, newer vs. olderType of car: 2-door vs. 4 door, newer vs. older

2-door=higher rate (more risk)2-door=higher rate (more risk) Older=higher rate (more risk)Older=higher rate (more risk)

Car safety ratingCar safety rating Color doesn’t matterColor doesn’t matter

Financing (car loan)Financing (car loan)

Highest interest rate in NE: 18%, usually Highest interest rate in NE: 18%, usually between 5-8%between 5-8%

Insurance rate decreases when you turn 25 Insurance rate decreases when you turn 25 or when you get married/have kids (less or when you get married/have kids (less risky)risky)

After purchase costs After purchase costs (“back end”)(“back end”)

Added warrantyAdded warranty

Added “toys”Added “toys”

Additional Car ReviewAdditional Car Review

Insurance on a used car is less than Insurance on a used car is less than insurance on a new carinsurance on a new car

Buying a car is the 2Buying a car is the 2ndnd largest purchase largest purchase most people makemost people make

Comprehensive insurance covers vandalism, Comprehensive insurance covers vandalism, theft and firetheft and fire

What to do if you’re in an What to do if you’re in an accident:accident:

NE is NE is TORT TORT state-someone state-someone must be found at fault in must be found at fault in an accidentan accident

How you react can prevent How you react can prevent further injuries, reduce further injuries, reduce costs and accelerate the costs and accelerate the clean-up and repair clean-up and repair process.process.

"These tips can make a big "These tips can make a big difference in everything difference in everything from protecting yourself from protecting yourself and your passengers to and your passengers to ensuring that you won't be ensuring that you won't be without a car while yours without a car while yours is in the shop,"is in the shop,"

Action Plan to Deal with Accidents:Action Plan to Deal with Accidents:

1. 1. Keep an Emergency Kit in Your Glove CompartmentKeep an Emergency Kit in Your Glove Compartment

Carry a cell phoneCarry a cell phone

Always have a pen and paper for taking notesAlways have a pen and paper for taking notes

Take photos at the sceneTake photos at the scene

Keep a list of contact numbers for law enforcement agenciesKeep a list of contact numbers for law enforcement agencies

Drivers can keep this free fill-in-the-blanks accident Drivers can keep this free fill-in-the-blanks accident information form in their glove compartment.

The The DocuDent™ Auto Accident Kit ($19.95), supported by AAA and insurance companies, offers a comprehensive kit that includes a flashlight, reusable camera and accident documentation instructions. A set of cones, warning triangles or emergency flares should be kept in the trunk.

2. Keep Safety First2. Keep Safety First

Drivers involved in minor accidents with no serious Drivers involved in minor accidents with no serious injuries should move cars to the side of the road and out injuries should move cars to the side of the road and out of the way of oncoming traffic. of the way of oncoming traffic.

Leaving cars parked in the middle of the road or busy Leaving cars parked in the middle of the road or busy intersection can result in additional accidents and intersection can result in additional accidents and injuries. injuries.

If a car cannot be moved, drivers and passengers should If a car cannot be moved, drivers and passengers should remain in the cars with seatbelts fastened for everyone's remain in the cars with seatbelts fastened for everyone's safety until help arrives. safety until help arrives.

Make sure to turn on hazard lights and set out cones, Make sure to turn on hazard lights and set out cones, flares or warning triangles if possible.flares or warning triangles if possible.

3. Exchange Information. 3. Exchange Information.

After the accident, exchange the following information: After the accident, exchange the following information: name, address, phone number, insurance company, policy name, address, phone number, insurance company, policy number, driver license number and license plate number number, driver license number and license plate number for the driver and the owner of each vehicle.for the driver and the owner of each vehicle.

If the driver's name is different from the name of the If the driver's name is different from the name of the insured, establish what the relationship is and take down insured, establish what the relationship is and take down the name and address for each individual.the name and address for each individual.

Also make a written description of each car, including year, Also make a written description of each car, including year, make, model and color — and the exact location of the make, model and color — and the exact location of the collision and how it happened. collision and how it happened.

Finally, be polite but don't tell the other drivers or the Finally, be polite but don't tell the other drivers or the police that the accident was your fault, even if you think it police that the accident was your fault, even if you think it was.was.

4. Photograph and Document the Accident.4. Photograph and Document the Accident.

Use your camera to document the damage to Use your camera to document the damage to all the vehicles. Keep in mind that you want all the vehicles. Keep in mind that you want your photos to show the overall context of your photos to show the overall context of the accident so that you can make your case the accident so that you can make your case to a claims adjuster. to a claims adjuster.

If there were witnesses, try to get their If there were witnesses, try to get their contact information; they may be able to help contact information; they may be able to help you if the other drivers dispute your version you if the other drivers dispute your version of what happened.of what happened.

5. File An Accident Report. 5. File An Accident Report.

Although law enforcement officers in many Although law enforcement officers in many locations may not respond to accidents unless locations may not respond to accidents unless there are injuries, drivers should file a state there are injuries, drivers should file a state vehicle accident report, which is available at vehicle accident report, which is available at police stations and often on the Department police stations and often on the Department of Motor Vehicles Web site as a downloadable of Motor Vehicles Web site as a downloadable file.file.

A police report often helps insurance A police report often helps insurance companies speed up the claims process.companies speed up the claims process.

6. Know What Your Insurance Covers.6. Know What Your Insurance Covers.

The whole insurance process will be easier following The whole insurance process will be easier following your accident if you know the details of your your accident if you know the details of your coverage. coverage.

For example, don't wait until after an accident to For example, don't wait until after an accident to find out that your policy doesn't automatically cover find out that your policy doesn't automatically cover costs for towing or a replacement rental car. costs for towing or a replacement rental car.

Generally, for only a dollar or two extra each month, Generally, for only a dollar or two extra each month, you can add coverage for rental car reimbursement, you can add coverage for rental car reimbursement, which provides a rental car for little or no money which provides a rental car for little or no money while your car is in the repair shop or if it is stolen. while your car is in the repair shop or if it is stolen. Check your policy for specifics.Check your policy for specifics.

The final question in dealing with an accident is The final question in dealing with an accident is usually who will pay for the damages? usually who will pay for the damages?

If the accident was minor, you and the other drivers If the accident was minor, you and the other drivers may decide to handle the damages yourselves may decide to handle the damages yourselves without the involvement of an insurance company. without the involvement of an insurance company. But this isn't always the best idea, for several But this isn't always the best idea, for several reasons:reasons:

While the other driver may agree to pay for the While the other driver may agree to pay for the damage to your car on the day of the accident, he damage to your car on the day of the accident, he may see the repair bills and decide it's too high. At may see the repair bills and decide it's too high. At this point, time has passed and your insurance this point, time has passed and your insurance company will have more difficulty piecing together company will have more difficulty piecing together the evidence if you file a claim.the evidence if you file a claim.

Also, keep in mind that you have no way of knowing whether another Also, keep in mind that you have no way of knowing whether another driver will change his mind and report the accident to his insurance driver will change his mind and report the accident to his insurance company. He may even claim injuries that weren't apparent at the scene company. He may even claim injuries that weren't apparent at the scene of the accident. This means that your insurance company may end up of the accident. This means that your insurance company may end up paying him a hefty settlement, or worse yet, you could be dragged into a paying him a hefty settlement, or worse yet, you could be dragged into a lawsuit. So make sure that your company has your version of what lawsuit. So make sure that your company has your version of what happened and check your policy — if the damages paid out by your happened and check your policy — if the damages paid out by your insurance company are below a certain amount, the accident may not be insurance company are below a certain amount, the accident may not be considered chargeable. And you will avoid the penalty of a premium hike.considered chargeable. And you will avoid the penalty of a premium hike.

Auto accidents take a tremendous toll on everyone involved, both Auto accidents take a tremendous toll on everyone involved, both financially and emotionally. If you're one of the lucky ones who have thus financially and emotionally. If you're one of the lucky ones who have thus far avoided a serious accident, hopefully the tips on prevention will help far avoided a serious accident, hopefully the tips on prevention will help keep it that way. The chances are high, though, that at some point you keep it that way. The chances are high, though, that at some point you will be involved in a minor accident. Just keep your head and make safety will be involved in a minor accident. Just keep your head and make safety your primary concern. You'll have plenty of time to deal with the your primary concern. You'll have plenty of time to deal with the consequences later.consequences later.

Resource: Resource: http://www.edmunds.com/car-safety/what-to-do-after-a-car-accident.html