INSURANCE

Vehicle Ownership Costs

Vehicle Ownership Costs

1. Insurance Costs

2. Purchasing/Financing a Vehicle

3. Maintenance/Operating Costs

4. Registration/Inspection

Virginia Law requires proof of

• financial responsibility.(proof you can pay for damages if you cause a wreck)

Your parents’ policy covers you while

you have a learner’s permit. After you get your license, you have to get your own insurance

Policy

"Contract" you agree to with an insurance company

Premium

Amount you pay the insurance company regularly

Filing a Claim

Formally asking the insurance company

Deductible

Amount you choose when setting up your policy that you agree to pay (in addition to your premium) before asking the insurance company to pay for damage

Take out a policy then pay your premium regularly. If there hasn't been an accident,

pay your premium

If there is an accident,

file a claim, pay your deductible, then the car is fixed; damage is paid for

After the accident and damage is paid for , pay your premium regularly.

pay your premium regularly.

What does liability mean?

Liability provides bare minimum coverage.

You must have this amount of liability coverage for injury/death of 1 person:

25,000

You must have this amount of liability coverage for injury/death of 2 people

$50,000

You must have this amount of liability coverage for Property damage

 $20,000

Liability

Provides bare minimum coverage and mandatory in VA

Covers damage to other people's belongings when it is your fault.

Medical Payments

Pays for the treatment of injuries to the driver and passengers of the policyholder's car.

Uninsured/Underinsured

Will reimburse you, a member of your family, or a designated driver if one of you is hit  by an uninsured or hit-and-run driver

Underinsured motorist coverage comes into play when an at-fault driver has insufficient insurance to pay for your total loss

Not required, but often required by your financing company

Pays for Medical expenses, Funeral expenses, Car Repair, Car Rental, Replacement of damaged contents

Collision

Covers damage to your car when your car hits or is hit by another vehicle, regardless of who is at fault.

Hint: If there is a collision, that is covered by collision insurance. 

Comprehensive

Comprehensive

Towing and Labor Coverage

Pays Towing

- Onsite labor charges such as changing a tire

- When your car is disabled

Covers

- Your car

Not required by Virginia Law

Rental Reimbursement

Pays for a Car Rental while your car is being repaired

After a crash

After comprehensive losses

Covers you and your family members

It is optional and not required by VA law

Who You Are

Male drivers under 21 and unmarried women under 25 pay the highest rates.

Type of Car

• Rates are the highest for luxury cars.

• Higher for cars that cost a lot to repair.

How You Use Your Car

• Higher for cars driven lots of miles

Where You Live and Drive

• Urban counties have more crashes and auto thefts so rates are higher in those areas than in rural areas. 

Your Deductible

Amount you choose when setting up your policy that you agree to pay (in addition to your premium) before asking the insurance company to pay for damage

Your Deductibles  (How much are YOU willing to pay for a claim before your insurance pays anything.

• What is your share of the cost of a collision or comprehensive claim?

• You can reduce your premium by raising your deductibles.

Surcharges

Penalties added for crashes and certain traffic violations. (Some crashes cost you more)

Discounts

Some are required by the state, while others are incentives offered by insurance companies

What to Do After a Collision

• Stop as soon as possible.

• CALL the Police.

• Check your surroundings -  make sure your passengers and those in the other vehicle(s) are okay.

  • If anyone is injured or killed, call EMS immediately.

  • If no one is injured and your vehicle can be moved, move to a secure location.

• Exchange information

  • Contact and insurance information. This is obtained information from the other driver.

• Finally, notify your insurance provider if you intend to file a claim.

If You Witness a Collision

• Be a good citizen and remain at the scene as a witness.

• Assist injured if necessary.

• Write everything you saw as soon as you can.

• Give your statement (verbal and written) to the police.

• If an insurance company calls you, tell them what you saw.