Name______________________________________________Period ...€¦ · Web viewStudent Worksheet. Insuring a New or Used Car. Name:_ Foundation Activity. Date:___ Insurance

Name________________________________________________Period_______Score___________

Student Worksheet

Cars

Name:_____________________________

Assessment Activity

Date:______________________________

Monthly Operating Costs

Class Period:________________________

Name_____________________________________________Period_______Score___________

Cars and Insurance - Getting a Set of Wheels

Overview

Few of us live, work, and shop within a small geographic area. Most of us need transportation to go to work or school or for other reasons. Transportation, and more specifically the automobile, has become a necessity for most of the people in our society. Your selection and use of an automobile is a fundamental part of your personal financial plan. Whether you buy a new car or a used car, there are proven strategies that will make the experience better and minimize your costs. In this unit, you will investigate the steps in buying a car and in financing the purchase. You will determine the costs associated with owning and operating a vehicle including maintenance, insurance and fees.

In this unit, you will . . .

· describe the process of buying a new or used car, including selection, financing, and wise buying practices

· explain automobile leasing costs, processes, advantages, and disadvantages

· list the costs of owning and operating a car

· explain the different types of automobile insurance and strategies for reducing costs

Vocabulary

2013-2014 (Academic)5

APR

ASE Certified Mechanic

Bait and Switch

Base Price

Beneficiary

Blue Cross/Blue Shield

Car Make

Car Model

Cash Value

Certified Used Car

Collision Insurance

Comprehensive Insurance

Copay

Cost of the loan

Dealer Cost

Dealer List Price

Deductible

Depreciation

Disability Insurance

Down Payment

Factory Warranty

Factory-to-Dealer Incentives

Gap Insurance

HMO Insurance

Invoice Price

Leasing

Lemon

Liability Insurance

Miles per Gallon (MPG)

Monroney Sticker Price (MSRP)

POS Insurance

PPO Insurance

Premium

Residual Value

Term Life Insurance

Uninsured Motorist Coverage

Upside-down

Vehicle Identification Number (VIN)

Whole Life Insurance

Worker's Compensation Insurance

Section1

Directions: Identify your personal transportation wants and needs by answering the following questions:

How will you use your car? Choose all that apply.

Student Worksheet

Buying a New or Used Car

Name:_____________________________

Skill-Building Activity

Date:______________________________

Vehicle Comparison Shopping

Class Period:________________________

Drive to school

Drive to work

Carry friends

Carry family members

Hauling

Sports and Recreation

What kinds of roads will you drive on? This will help you decide whether you need a front-wheel, rear-wheel, or four-wheel drive vehicle.

Highway

City

Suburban

Rural

Off-road

Mountain roads & Snow conditions

Where will you park your car most of the time? Your parking space will determine the amount of money you will want to spend if the car isn’t protected from the weather or theft.

Driveway

Street

Parking lot

Garage

What extra features would you like in a car?

Sun roof/Moon roof

Manual transmission

Navigation System

Automatic transmission

Deluxe Safety Features

Four-wheel drive

Deluxe Audio System

Leather Seats

Video System

Third-Row Seat

Roof Rack

Heated Seats

Cruise Control

______________________

______________________

How will you carry insurance? Identifying your insurance requirements will help you gain an accurate quote from an insurance company.

Your parents’ policy

Your own policy

Do you qualify for any insurance discounts? Knowing what discounts you qualify for will help you to get an accurate quote from an insurance company.

Good student

Non-drinking and nonsmoking

Driver’s education

No past accidents or tickets

Do you plan to purchase a new or a pre-owned car?

New car (average cost is $25,000)

Pre-Owned car (average cost is $15,000)

· What is the maximum age of the car you will accept?____________________

· What is the maximum number of miles you will accept? ____________________

How will you pay for your vehicle? You need to know how you will pay for your car to prepare for financing a loan, if required.

How much money can you contribute?___________________

How much money will your parents contribute?___________________

What is the maximum loan you can afford?___________________

Total Available for car purchase___________________

Section 2

Directions: Identify three types of vehicles that meet your criteria and complete the questions below. Research to compare pricing and features for your three choices. Possible online resources include:

www.carfax.com

www.nadaguides.com

www.edmunds.com

www.consumerreports.com

www.fueleconomy.gov

www.safercar.gov

Vehicle 1: Year:____________Make:_____________________Model:____________________

Price:________________Highway MPG:_________City MPG:_________ Miles:_____________

Annual Fuel Cost:______________ Monthly Fuel Cost:______________ Safety Rating:__________

Features:

Sun roof/Moon roof

Manual transmission

Navigation System



Four-wheel drive

Deluxe Audio System

Leather Seats

Video System

Third-Row Seat

Roof Rack

Heated Seats

Cruise Control

______________________

______________________




Features:

Sun roof/Moon roof

Manual transmission

Navigation System



Four-wheel drive

Deluxe Audio System

Leather Seats

Video System

Third-Row Seat

Roof Rack

Heated Seats

Cruise Control

______________________

______________________




Features:

Sun roof/Moon roof

Manual transmission

Navigation System



Four-wheel drive

Deluxe Audio System

Leather Seats

Video System

Third-Row Seat

Roof Rack

Heated Seats

Cruise Control

______________________

______________________

Which vehicle would you choose and why?

Down Payment: The amount of your own money you pay upfront for the vehicle. It is recommended that you make a 10% to 20% down payment. The larger the down payment you are able to make, the less principle you will need to borrow.

SECTION 1

Directions: Use the examples given to compute the down payment required to purchase the following vehicles:

VehiclePrice 10 % Down Payment20% Down Payment

Truck$13,000

Sedan$23,000

Coupe$18,500

SECTION 2

Directions: Access the website Edmunds.com and locate the Payment Calculator on the main page under “New Cars” tab, Calculators, find the “More Calculators” link on the left. Use the Payment Calculator to complete the calculations outlined below. You will need to enter the down payment, purchase price, interest rate, and loan term. Pay particular attention to the effect of changes in the interest rate, down payment, and length of loan. http://www.edmunds.com/calculators/car-loan.html

Directions: Use a Payment Calculator to complete the calculations outlined below. Pay particular attention to the effect of changes in the interest rate, down payment, and length of loan.

1.Cost of Vehicle (Purchase Price)$9,000Loan Term36 months

Interest Rate9% Down Payment10%

Monthly Payment:___________Total Loan Amount:____________

Cost of the Loan (Total Interest):____________

























Section 3

Directions: Evaluate the preceding loan options and identify three things you noticed about the effects that the interest rate, length of the loan, and amount of the down payment have on the cost of the loan or the monthly payments.

1.

2.

3.

Section 4

Directions: Complete the loan information for the car or your choice. Then select a loan term.

Car Manufacturer, Make and Model:

Purchase Price:__________________________ Down Payment:

Starting Loan Amount:____________________Current Interest Rate:%

36 months

48 months

60 months

Monthly Payment

Total Amount Paid(months x payment)

Cost of Loan (Total Interest)

Student Worksheet


Name:_____________________________


Date:______________________________

Financing a Car

Class Period:________________________

Which loan term did you select? ☐36months ☐48 months ☐60 months

Section1

Directions: Go to http://www.federalreserve.gov/pubs/leasing/. Use the information on the site to complete the chart. You may summarize the information in your own words if you wish.

Item

Leasing

Buying

Ownership

Up-Front Costs

Monthly Payments

Early Termination

Vehicle Return

Future Value

Mileage

Excessive Wear

End of Term

Section 2

Directions: Go to http://www.federalreserve.gov/pubs/leasing/. Use the information on the site to answer the questions.

1. What items will you need to pay for at the beginning of the lease?

2. What items will you pay during the lease?

3. What items might you pay at the end of the lease?

4. What lease items can sometimes be negotiated?

5. What are your rights as a lessee?

6. What are your responsibilities as a lessee?

Student Worksheet


Name:_____________________________


Date:______________________________

Leasing v. Buying

Class Period:________________________

Directions: Go to http://www.metlife.com. From the menu bar across the top of the screen, select Life Advice. From the list in the middle of the screen, select Insurance. From the list in the middle of the screen, select Auto Insurance. Use the information on the site to answer the questions.

1. Name at least seven (7) things you should do if you are in an accident?

2. What is liability insurance?

3. Explain the two different types of liability insurance?

4. Explain what the number 50,000/100,000/30,000 represents.

5. What is the difference between Comprehensive and Collision coverage?

6. What is a deductible?

7. What is uninsured/underinsured motorist protection, and why do some states require it?

8. What kinds of bills or costs will Medical Payments/PIP coverage provide?

9. What are the seven (7) factors that determine or affect your auto insurance premium?

10. Name four (4) ways teens can save money on car insurance?

11. What are the six (6) basic elements available in a typical automobile insurance policy?

Directions: Go to http://www.dmv.org. Select Pennsylvania as the state. Search the site for “required auto insurance.” Use the information on the site to answer the questions.

12. What is the minimum amount of insurance required to legally drive a car in Pennsylvania?

13. What are the consequences to driving without the proper amount of Pennsylvania car insurance?

Directions: Complete the chart by filling in the appropriate term on each line. Note: terms in the Word Bank may be used only once.

Word Bank

Student Worksheet

Insuring a New or Used Car

Name:_____________________________

Foundation Activity

Date:______________________________

Insurance Basics

Class Period:________________________

Blue Cross/Blue Shield

Disability Insurance

Health insurance

HMO

Life Insurance

POS

PPO

Private pay

Term

Whole life

Worker’s Compensation

Section 1: Operating Costs (Monthly)

Directions

With the number of online car insurance shoppers rising each month, CarInsurance.com offers this tool to show auto insurance premiums and customer rate trends. It is necessary to shop regularly because the same rate last year is not the same rate this year. Insurance companies regularly file new rates and shoppers are able to compare them at many different websites. CPI is a great tool to help you see the national average, along with state by state comparisons of average auto insurance premiums. Visit the following website @ http://www.carinsurance.com/Premium-Index.aspx and find the following information.

National Car Insurance Premiums Data for the Past 12 Months

1. In what month was the highest national average of car insurance premiums? __________________

2. In what month was the lowest national average of car insurance premiums? __________________

3. What is the national average of car insurance premiums for January? ___________________

4. What is the national average trend of car insurance premiums over the last 12 months?

__________________________________________________________________________________________________________________________________________________

Pennsylvania Insurance Rates

5. During what month was the cost for PA car insurance rates the highest?

How much was the average cost in dollars for that month?

6. What was the most recent month’s average cost for premiums in PA?

How much of percentage change was this from the previous month?

7. What is the average insurance cost in Newtown, PA (zip 18940)?

What is the average insurance cost in Philadelphia, PA (zip 19133)?

What is the average insurance cost in Bellefonte, PA (zip 16823)?

What factors might account for the difference in premiums in these areas? ____________________________________________________________________________________________________________________________________________________________

Section 2 - Directions: Use this form to estimate how much it will cost you to keep your vehicle on the road. Check with your parents and repair shops for estimates of items marked with an asterisk (*).

Maintenance

The average person drives their car 15,000 miles per year. Use this number to estimate maintenance expenses. Check with your parents and/or repair shops websites for estimates.

EXPENSES (Monthly Operating Costs)MONTHLY COSTS

Oil Change and lubrication (every 3,000 miles or 5 times per year)*$

Tire Rotation (every 5,000 miles or 3 times per year)*$

Tune-Up (every 30,000 miles or ½ times per year)*$

Total Yearly Maintenance Costs$

Total Monthly Maintenance$

Gas & Insurance & Car Payment

Monthly gas (From “Vehicle Comparison Shopping” worksheet)$

Monthly insurance (From “Section 1-Question 5 ) $

Monthly car payment (From the “Financing a Car Loan Worksheet)$

Total Monthly Operating Expenses (add all boxed items)$

Don’t Forget that These Costs are calculated on a Monthly Basis!

- protects against risk of an early death

__________________________________ permanent insurance that provides beneficiary payment as well as builds cash value.

__________________________________ temporary insurance that provides beneficiary payment only.

- protects against risk of medical care due to illness or injury

____________________________________________________ covers medical bills after a deductible amount has been paid.

- protects against risk of not being able to work

________________________________________________ provides payments to workers who are injured on the job or become ill as a result of their job

___________ is a managed care plan that contracts with only certain providers, referrals are usually needed; no coverage outside network.

___________ is similar to an HMO but providers have more control over their fees; usually NO referrals ; some coverage outside network

___________ has referrals like an HMO and some out of network coverage like a PPO.

_______________________________ insurance paid by either your employer or you as an individual that provides payments if you are unable to work due to injury or illness

Documents

Name________________________________________________Period ...€¦ · Web viewStudent Worksheet. Insuring a New or Used Car. Name:_____ Foundation Activity. Date:_____ Insurance

Name______________________________________________Period ...€¦ · Web viewStudent Worksheet. Insuring a New or Used Car. Name:_ Foundation Activity. Date:___ Insurance