Licensing and Vehicle Ownership

1. Licensing and Vehicle Ownership Chapter 19

2. 19-1 The Licensing Process • The Driver’s License • First taste of freedom, but it comes with responsibility • It is a privilege, and can be taken away if you fail to meet your obligations as a driver • Functions of a driver’s license • Proof of legal ability to drive a vehicle • Proof of identity • If you move to a different state, you must have a valid driver’s license in the state that you live in

3. The Department of Motor Vehicles • Known as the DMV • Other names: Motor Vehicle Association (MVA), Bureau of Motor Vehicles (BMV) • This is where you will be issued your license • Instances in which you could be denied a license: • Not being legal age • Having history of irresponsible driving • Not being a resident of the jurisdiction • Having a physical or mental condition making it unsafe to drive • Failing written test or road test • Lying on your license application • Failing to have paid an outstanding traffic fine • Chronically abusing alcohol or drugs as determined by a court • Failing to understand road signs • Refusing to surrender a license from another jurisdiction in return for your new one • Having your license suspended or revoked

4. Licensing • Age Restrictions • must be 16 years of age or older • 15 for a learner’s permit • Types of Licenses • Learner’s Permit • Restricted License • A license with parents’ approval needed until you are 18 • Upon proof of independence • Regular license

5. Driver’s License Testing • Written Test • Evaluates your knowledge of driving fundamentals • If you fail, you can take it again • Vision Test • Color test, visual acuity, depth perception • Road Test • After receiving your license… • Don’t just take off and drive by yourself • Put off challenges, such as long trips, dense traffic, etc.

6. 19-2 Insuring Your Vehicle • Financial Responsibility Laws • Regulations making drivers responsible for any damage to property or any personal injury that they may cause while driving • Must have vehicle insurance • Insurance Policy • Written contract between the driver and the insurance company that outlines our coverage and how much the insurance company is liable for • Must be able to show verification if you are pulled over – can be ticketed – but if you prove you have insurance, ticket will be dropped

7. Types of Vehicle Insurance • Insurance is acquired from an insurance company by paying a premium • A specified amount of money for a length of time, usually 6 months or a year • If your vehicle is damaged or stolen or if you are injured in a collision in your vehicle, you can make a claim to your insurance company • A report filed by an insured person against an insurance company to recover losses covered by his or her policy • Includes people filing against another person • Deductible • Amount of money that you must pay before the insurance company begins paying for you on a claim or demand • Higher deductibles = lower premiums • Once your deductible is met, insurance pays up to limit specified in your policy

8. Liability Insurance • Mandatory in Illinois • Bodily Injury Liability • Pays for medical costs and the pain and suffering associated with injuries and death to other persons when you are at fault • Property Damage Liability • Covers the repair or replacement of other people’s property damaged by your vehicle • Both of these will also pay your legal fees and court costs in the event you are sued by another driver or pedestrian • Illinois Insurance type and minimum amount required: • You are in compliance with the mandatory insurance law if you have vehicle liability insurance in the following minimum amounts: • $20,000 - injury or death of one person in an accident • $40,000 - injury or death of more than one person in an accident • $15,000 - damage to property of another person

9. Enforcement • Enforcement of the mandatory insurance law is accomplished through a random questionnaire sampling process and the issuance of traffic tickets. • If the computer randomly selects your vehicle, you will receive a questionnaire asking for the name of your insurance company and policy number. Your answers will be verified with the company you name. If you do not have insurance or fail to return the questionnaire with the requested information, your license plates will be suspended. • If you are stopped for a traffic violation or involved in an accident, a law enforcement officer may issue a traffic citation if you are unable to provide evidence of insurance. If convicted, your license plates will be suspended and you will face the following fines: • minimum $500 fine for driving uninsured • minimum $1,000 fine for driving a vehicle while the license plates are suspended for a previous insurance violation

10. Vehicles Affected • Liability insurance is required for all motor vehicles that must display license plates and are being driven, including: • Cars • Vans • Motorcycles • Recreational Vehicles • Trucks • Buses • Trailers are not required to have liability insurance.

11. Collision Insurance • Covers the cost of repairing or replacing your vehicle at its current market value when it is damaged in a collision • Also subject to deductible and coverage limits • Usually pays for damage even if you are responsible or if your car is damaged while parked in a lot or on the street

12. Comprehensive Insurance • Protects you from the loss of your vehicle or accidental damages to your vehicle caused by anything except a collision • Pays for repair or for replacement costs up to the current market value of the vehicle, less the amount of deductible stated in the policy • In some places, the insurance company of the driver at fault pays for costs arising from injuries and/or property damage to others

13. No-Fault Insurance • Requires that the insurer pays the owner and passengers for certain damages or personal injury claims regardless of who is at fault in a collision • Some places, driver’s are required to carry uninsured/underinsured motorist coverage • Protects the insured driver and any passengers from damages resulting from a collision caused by a hit-and-run driver or by a driver who either does not have liability insurance or does not have enough to cover all losses for which he or she is held responsible

14. Insurance Rates • Rates are determined by statistics that indicate the likelihood that certain groups of people will be involved in a crash • Factors include: • Driving record • Age • Miles driven • Gender • Marital status • Residence • Type of vehicle • Ways to Reduce Insurance Rates • Discounts are given for drivers who: • Have no claims or moving violations for several years • Have more than one vehicleinsured • Have factory-installed airbagsor automatic safety belts • Have a car with an anti-theft device • Carpool • Are students that maintain a “B” average in school

16. Exclusions • Describes the conditions under which certain types of injury or damage are not covered • For example, • Liability policy may exclude coverage if an injury or damage is caused by another person who uses an insured vehicle without the insured owner’s permission

17. Filing a Claim • Must notify the insurance company promptly • Notify police of the situation • If police have not been notified: • your claim can be denied • May not get full amount of the claim • A claim’s adjuster will come and document damages done and make and estimate of the cost

18. 19-3 Your Driving Record • A record maintained by the jurisdiction in which you live of all your motor vehicle violations that have occurred in all jurisdiction • Your license can be revoked for a violation in another jurisdiction • Communication between jurisdictions, such as law enforcement officials, the courts, and DMVs

19. The Demerit System • DMV keeps a record of all moving violations that a person accrues over their lifetime • DMV puts points onto your record • Points will stay on your record for a specified period of time based on the severity of the offense • More serious the offense, more points charged to your record • Example: the number of demerit points for speeding often depends on how many miles per hour over the posted speed limit you were found to be driving

20. License Suspension and Revocation • Suspension • Temporary loss for a specified period • Revocation • Cancels the legal permit to drive for a specified period of time • After the revocation period expires, you must apply for a new license • Habitual Offender • Revocation can be made permanent for offenders that commit offenses repeatedly

21. License Suspension and Revocation • http://www.cyberdriveillinois.com/publications/pdf_publications/dsd_a112.pdf

22. 19-4 Buying and Selling a Vehicle • New vs. Used • Warranty • Written guarantee that the car manufacturer or dealer will repair or replace any defective parts or systems within a set amount of miles or years • New cars • Longer warranties • Hold up better under heavy use or long distance traveling • Parts are easier to find • Used cars • Lower prices • Depreciation • The decline of a vehicle’s resale value over time • Depends on the vehicle condition, mileage, and options • Cheaper to insure

23. Buying a New Car • Shop around • Go to several different dealerships and find out what is available • Find out exactly what you are going to have to pay to drive one off the lot • Keep in mind – most car salesman are paid by commission and can be aggressive in going after business • Be polite but firm • If you have questions or don’t understand something, ask

24. Buying a New Car • List Price • “retail price” • manufacturer’s suggested retail price (MSRP) for factory-installed options • “sticker price” • List price plus destination charges and additional options and services provided by the dealer • Destination charge – cost of shipping the vehicle from the manufacturer to the dealership • Preparation charge – prepare the vehicle for sale by tuning up the engine, checking emissions, and performing other services • Will often not include sales tax or registration fees

25. Buying a New Car • Rebate • Special payment to the customer to boost sales on certain models • Make sure to consider the warranty • Usually 3 years or 36,000 miles to 5 years 60,000 miles

26. Buying a Used Car • More time consuming and complicated that buying a new car • Make sure you are not getting someone else’s problem • Inspect the car with a friend • Go in the daytime when you can see well • Test drive several times • Have a mechanic do a diagnostic check • Get the CARFAX report • Gives you a listing of previous owners • Call and get their opinion of the vehicle • Lists any and/or all issues that have involved the car • Collisions, mileage, service visits

27. Financing Your Vehicle • Purchase price • Amount of money that the dealer or owner is willing to accept • Cash = No Interest • Auto Loans • Total cost of the car depends on: • Interest rate • Amount borrowed • Length of time required for repayment • Usually run 2-5 years in duration • Larger the down payment, lower the monthly payment and less you will have to pay in the long run

28. Title and Registration • Title • Document showing proof of ownership • You do not receive the title until you purchase the car (your last payment) • Registration • Paid each year

29. Selling Your Vehicle • It is important to take care of your vehicle in the event you want to sell it • Clean the inside and out • Check Kelly Blue Book for estimates on worth of your vehicle • Make sure you have all your money before giving up the title to vehicle • Trade-Ins • When trading your car in, you will get a new car, but now owe on the old car and the new one