Responsibilities of owning a vehicle

1
Responsibilities of owning a vehicle

• Chapter 16

2
Buying a vehicle

• Includes
• Purchase
• Maintenance
• Insurance
• Fuel expense

3
Cost of owning a vehicle

• Purchase Price
• amount the owner will accept for it
• Depreciation
• Value of a vehicle drops
• Other costs
• Fuel, oil, tires, repairs, replacement parts,
  licensing, registration, insurance, taxes,
  interest

4
What kind of vehicle to buy

• What are you going to use it for?
• Family?
• How many miles?

5
Vehicle size

• Smaller gets better gas mileage
• Not as comfortable
• No capacity for passengers
• Engine size
• Fuel efficiency
• What is it used for
• Transmissions
• MPG

6
Buying Used

• How much should you pay
• Blue book value
• Choosing a used vehicle
• Outside and inside checks
• Doors
• Paint
• Rust
• Check fluids
• Brakes
• Lights
• accessories

7
Checks under the hood

• Radiator and fan
• Leaks
• Belts
• Coolant
• Battery
• Listen to the engine

8
Test drive a vehicle

• Check all lights
• Starts easily
• Test brakes at low speed
• Turn corners
• Accelerate
• Drive on rough road
• Check gauges
• Have a mechanic look at your car.

9
Auto Insurance and Risk?

• What is the risk of owning a car?
• Money!
• You are at risk whenever you drive your car!
• Look at your record- any tickets?

10
Personal Injury coverage

• Bodily injury liability protection- protects the
  insured, for damages when the insured is at
  fault. Injuries to other people. 100/300
• Medical Payments- covers family members if they
  are injured in the car or someone elses car.
  Guest are also covered
• Unisured motorist protection

11
Property damage coverage

• Property Damage Liability- cars, telephone poles,
  fire hydrants, buildings.
• Collision Insurance- protects a car owner against
  financial loss associated with damage resulting
  from a collision with another car or object or
  from the car turning over- Usually a deductible

12
Comprehensive Coverage

• Coverage for all except collision.
• Stolen, fire, tornado, windstorm, vandalism,
  falling objects,

13
Insurance Rates

• Age, record, marital status, academic standing
• purpose for which you use your car
• miles you drive in a year
• value and type of car
• community in which you live
• types of coverage and deductibles

14
Vehicle insurance laws

• Compulsory insurance laws- require you to carry
  certain types of automobile insurance
• Financial Responsibility Laws- Pay off your
  liability bill or no license
• Assigned-Risk Plan- Insurance co. must take on a
  certain number of high risk.
• No- Fault insurance laws- Collect from you own
  insurance agency.