Unit 16 Flashcards
What is purchase price?
The amount the person is charged and willing to pay for a vehicle
What is depreciation?
A vehicle’s value drops steadily over time
What are 4 things to consider about affording a vehicle?
Purchase price
Depreciation
Financing
Other costs
What is a transmission?
Automatic in most cars
More fuel efficient
Higher repairs
What is the alternative to purchasing a vehicle?
Leasing- you do not own it
Often have limits on miles
What is a warranty?
Written guarantee that the seller will make certain repairs for a stated period of time
What are blue-book prices?
Average market value for the model and age of the vehicle
A valuable resource for learning about features of your new car and maintenance needs…
Owners manual
What is the financial responsibility law?
Prove that you can pay for damages you cause that result in death, injury, or property damage
Liability insurance at least
What is a premium?
Used to buy insurance from a company
A specified amount of money for coverage over a period of time, to the company
What is a policy?
A written contract between you and the insurance company about the terms and conditions of the insurance coverage
What is liability insurance?
Required by every state
Protects the driver who caused the collision
Compensation for harm or wrong to third party
Covers others when you are at fault
What is bodily-injury insurance?
Type of liability
Covers the driver who is at fault against claims
If someone is killed or injured and the owner is at fault
What is property-damage insurance?
Protects against claims due to property damage
Type of liability
Medical Payment insurance?
Medical and funeral expenses are payed regardless of fault
No-fault insurance?
Not concerned with who is to blame
Collision insurance
If you are at fault for the collision or cannot collect from the one who is
Coverage to the costs of repair
Deductible
Amount you agreed to pay towards the repair
Higher deductible- lower premium
What is comprehensive insurance?
non-collision insurance for repairs
What affects insurance rates?
Driving record Age Miles driven Gender Marital status Type of vehicle Where you live and drive Claim record
What is assigned-risk insurance?
Due to poor driving and habits- cancel insurance
Property and bodily damage insurance
What does carbon dioxide do/what is it?
Exhaust fumes
Greenhouse effect
CFC
Hurts the atmosphere
In AC
Refrigerant recovery systems
