Economic Notes

I will not print these off until Thursday since we will be adding more notes to them tomorrow. You can go ahead and print them off and copy them if you want. Remember you must copy the notes I give you if you want to be able to use them on the tests.

AUTOMOBILES

DOWN PAYMENTS

            The money you pay up front to pay for the car

            It can be as little as zero to half.

           

WARRANTY

·       When you buy a car, you get a warranty. It means if anything breaks in the first 3 years the car company will fix it for free.

·       Warranty usually lasts for 36 months, 36,000 miles it is which you hit first.

·       When you buy a new car… they will offer you an extended warranty. You spend extra money for an extended warranty.

·       If you buy a used car, it will mostly say as is… meaning as it is, no warranty.

DEPRECIATION

The value goes down. Worth less.

           

REGISTRATION FEE

When you buy a car you must go through inspection  and then you pay $107 for your tags.

In Mississippi: You are taxes depending on your car and the costs.

INSURANCE:

Liability

Covers damages to the other guy (medical, car damage) if it is your fault

State law in TN requires liability insurance. 

No deductible.

Collision

Covers damages to your car

Comprehensive

            Covers anything else other than a collision (wreck)

Ex. Hail storm,Tree branch falls on your car, someone breaks into your car.

            Medical

                        It would pay for your medical injuries.

Most people do not need this because they have health insurance.   

If you do not have health insurance, then you can buy medical insurance

GROUP RATES

Worst drivers (highest rates/costs) Young Single Men Age 16-24 because more likely to speed and to drink & drive.

2^nd Worst: 16-24 single women

3^rd Worst: Old People

Best rates (lowest costs):  25-45 married women

Deductible

            What you pay first before the insurance pays (kicks in)

            You can change the deductible, so you should know the deductible.

            If you raise the deductible then it will lower your payments.

IF YOU GET INTO A WRECK… What to do:

If you get in a car wreck and it is someone elses fault make sure you call the police If you get in a wreck, you call the police. Ask the police to ask the other person if they have insurance. You need a police report.