AUTO INSURANCE
A Necessity of Life
by Todd Garrison
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Introduction Task Resources Process Evaluation Conclusion
Many of you will be purchasing your first car within the next few years. What kind of car are you going to purchase? Before you answer this question, can you name all the additional costs involved in purchasing a car? Do you know what type of insurance to buy? Do you know how to obtain an insurance quote? Are you aware of ways to cut costs in auto insurance? Unfortunately, many teenagers underestimate the costs involved in buying an automobile. This project will enhance your knowledge and alleviate any concerns you have about auto insurance.
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To keep this project focused on auto insurance, we will assume your automobile has already been purchased. We are trying to determine whether you can financially purchase auto insurance for your car. In order to create "realistic" scenarios, you will need to choose from the following three drivers. Please select the driver that my best represents your situation. You may team in pairs and collaborate your responses. Also, each of you will be expected to purchase "full coverage" for your automobile. Your parents paying for your insurance in NOT an option.
Select ONE driver
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Drivers |
Financial Situation |
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Driver 1 |
This student works about 30 hours a week @ $8.00 an hour. He/she has approximately $4000 in the savings. He/she also performs many jobs during the week for an average of $50 a week. * determine net pay to be 80% of total wages for the week - for all drivers
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Driver 2 |
This student is involved in many extra-curricular activities. He/she works about 15 hours a week @ $7.50 an hour. He/she has approximately $500 in the savings. |
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Driver 3 |
This student performs baby-sitting, dog-sitting, and house-sittings duties for friends and neighbors. He/she puts in about 25 hours a week @ $3.50 an hour. He/she has approximately $400 in the savings. |
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One-line Insurance quotes:
To find your favorite local Insurance company by phone - search the yellow pages
Tips on how to save money on automobile insurance:
Terminology - Auto Insurance:
http://www.iii.org/media/glossary/
New and Used Cars - if still shopping:
Link 1 - Edmunds.com
Link 2 - Kelly Blue Book
Link 3 - CarPrices.com
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1. Select a driver (previous table) that best represents your financial situation. If you do not earn an income or have additional concerns, please notify the teacher for assistance.
2. Determine your yearly salary and estimate your monthly net (after taxes) income.
3. Establish the type of automobile you would like to purchase. If you are unsure as to what type of car to purchase, search the sites listed in the research section of this webquest.
4. Find at least 5 quotes using the links provided. Important - you must select a quote that best represents your financial situation.
5. Save and print a copy of the quote you are going to apply.
6. Develop a spreadsheet that defines the terms in your policy (full coverage please), amounts you will pay for each coverage, and 5-10 tips that will help you lower your insurance costs.
7. Give a 2-3 minute presentation about your findings. Please make sure you discuss:
· Type of car purchased
· Monthly income
· Dollar amount of quote you selected and how you are going make payments
· What is covered in you policy and the terminology. Very important - know what Full Coverage encompasses.
· Payment options (monthly, quarterly, semi-annually, annually)
· An example of an accident -you select the accident (be sure to mention the term deductible)
· Some tips you incorporated to save money on your policy
· What you learned about auto insurance
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Evaluation Rubric
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You have successfully purchased auto insurance! Hopefully you are well conversed with insurance terminology and have a better understanding of how to save money. Remember, we did not account for payments for the automobile, license plate costs, fuel costs, repair costs, and many other expenditure associated with owning a car. Study hard and drive safely!!! |
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Last Updated March
2005 by Trisha Armstrong