Unit 29: Vehicle Owner Responsibilities

By law, you must obtain a liability insurance policy that provides the following minimum amounts of coverage:

$30,000 for the injury or death of a single person $60,000 for a single collision that causes the injury or death of more than one person $25,000 for property damage

Long-term consequences for driving without insurance

A single offense can end up costing you over $1,000: after being convicted of driving without insurance, you must pay an annual surcharge of $250 for three years to maintain your license. Your license and vehicle registration will be suspended if you are convicted of driving without insurance more than once. This suspension will remain in effect until you obtain insurance and file evidence of financial responsibility. When reinstating your license following an insurance-related suspension, you will have to submit an SR-22 form to the DPS that requires your insurance company to monitor and report any changes to your policy for up to three years. If you cancel your policy or let it lapse during this period, your license will be suspended immediately.

What to do after you buy a car

After you purchase a car, you must make sure the car is titled in your name. The title certifies that you are the legal owner of the vehicle. Once the title has been registered in your name, you will receive a Certificate of Title from the Texas DMV.Sometimes, more than one owner may be listed on the title. For instance, if you have a car loan, the bank that issued the loan may be listed as an owner until your loan is paid off. This will allow the bank to repossess your car if you fail to make payments.

How to protect your car

Always keep your car's doors locked whether it's parked or on the road. In general, your windows should be rolled up far enough that no one can reach in. At night, travel on streets that are busy and well-lighted. Keep your purse and other valuables out of sight when you're driving and when your car is parked. Identify safe places on your normal route that are likely to be open at all hours, such as gas stations and police stations.

You must provide proof of financial responsibility if it is requested by a law enforcement officer or a person with whom you have been involved in a collision, as well as when you:

Apply for or renew a driver's license Register your vehicle or renew your registration Have your vehicle inspected

what to do As soon as your insurance company informs you of its decision to end its relationship with you

As soon as your insurance company informs you of its decision to end its relationship with you, you should start looking for a new insurer immediately. You may have to apply for TAIPA coverage if you cannot find another insurer to cover you. If your coverage lapses, you won't be able to drive until you obtain a new policy. By law, an insurance company cannot deny, refuse to renew, limit, or charge more for your coverage on account of your race, color, religion, or national origin. Additionally, age, gender, marital status, geographical location, and disability can only be used to refuse, limit, or charge more for coverage if sound actuarial principles indicate that you present a greater risk of loss to your insurer.

Driving habits that makes your car cheaper to run and slows the rate it depreciates

Avoid making fast starts and stops and cornering too fast: Not only is this behavior unsafe, but it wears out the tires and brakes, increasing the cost of maintaining your vehicle. Drive more slowly: The ideal speed for maximum fuel efficiency is between 45 and 50 mph. You will use 20% more fuel traveling between two points at 65-70 mph than you would traveling between the same two points at 55-60 mph. Anticipate the need to stop: By watching for stop signs, traffic lights, and congestion, you can slow to a stop smoothly and gently. Quick braking can wear out your brakes and tires. Perform maintenance tasks regularly: Your vehicle will run better and you'll face fewer costly repairs.

Pre-Purchase Inspection

Before you purchase a car, you should inspect the vehicle in person to make sure its condition is as advertised. This is especially true when buying a used car. When you go to check out a car, bring a notepad, pen or pencil, and list of questions you have about the car, as well as a flashlight and magnet to facilitate your inspection. Bring a knowledgeable friend or expert if possible.For practice, you should inspect a vehicle your family or a friend already owns so you can familiarize yourself with the inspection process. Your inspection will be more successful if you know what to look for.

What you should do when picking insurance rates

Buy only from a licensed agent or company. Answer the agent's questions truthfully: wrong information may result in an incorrect quote, rejection of your application, or cancellation of your policy. Get price quotes from several companies for the same amount of coverage. Consult independent agents who can give you multiple quotes at once. Consider factors other than price, like a company's financial rating and its complaint index. This information can be found at the Texas Department of Insurance (TDI) website.

What to do with answer to insurance claims

By law, your insurance company must respond to your claim within 15 days of receiving it in writing. Provide as much information as possible, as you may be requested to document your loss.After you submit any requested documentation, the company may accept or reject your claim. If the company accepts your claim, it must send you payment within five business days. If the company rejects your claim, it must explain the rejection in writing. If your claim is rejected, review your policy's language to determine whether the company's decision was valid.

When inspecting a car, you should try to determine whether a car is leaking fluids by: A. Removing the gas cap B. Checking under the car C. Bouncing the car's corners

Checking under the car

Which of the following insurance policies should you obtain to repair or replace your car if it is destroyed by an "act of God"? A. Comprehensive Coverage B. Collision Coverage C. UM/UIM Coverage

Comprehensive Coverage

Forms of insurance

Homeowner's insurance Renter's insurance Life insurance Health insurance Dental insurance

What happens with insurance if you purchase another car

If you are replacing an old car, your new car will automatically have the same coverage as the car you replace. If you are purchasing an additional car, it will usually have the same coverage as the car already on your policy with the broadest coverage. For instance, if you own two cars, but only have additional collision and comprehensive coverage for one, your new third car will have those additional coverages as well.

Tourist endorsement

If you plan to drive within Mexico, it's generally best to purchase a tourist endorsementfrom your insurance company, or to buy Mexican liability insurance from a licensed agent in Texas. Some insurance companies offer a limited tourist endorsement for free, but it may not be sufficient to meet Mexican legal requirements.

What to do if your car is stolen

If your car is stolen, report it to the police immediately. Also notify law enforcement if you recover your car yourself, as you may be arrested for driving your own car if it's still considered stolen.

Where to keep registration receipt

Keep the registration receipt in your glove compartment.

types of coverage

Medical Payments Insurance Personal Injury Protection Uninsured/Underinsured Motorist Insurance Collision Insurance Comprehensive Insurance Towing and Labor Insurance Rental Reimbursement Insurance Liability insurance

By law, a __________ must be attached to all new cars to identify its price and features. A. dealer sticker B. Monroney sticker C. Vehicle Identification sticker

Monroney sticker

what liability insurance covers

Most liability insurance policies cover the policy holder as well as members of the policy holder's family. Frequently, a liability policy will cover you and your family members when driving cars your family owns as well as cars (such as rental cars) being used temporarily. However, cars you don't own but have regular access to (such as company cars) are usually not covered. A liability policy may also cover other people driving your car with your permission. Be sure you review the terms of your liability policy carefully. Some policies will not cover other people, including your family members, unless they are specifically named in the policy.

A history of major driving violations can increase your insurance rates even more. Surcharges worth up to 60% of your premium may be added to your insurance costs for:

Multiple collisions (the more crashes you're involved in, the higher the surcharge will be) Involuntary manslaughter with a motor vehicle Driving under the influence Criminally negligent driving Driving without a license or with a suspended license If your record is bad enough, an insurance company may refuse to insure you or cancel your insurance. If this happens, you will be unable to drive until you obtain a new insurance policy.

To protect yourself from drivers who do not carry the legally required amount of insurance, you should: A. Drive more carefully around damaged vehicles B. Purchase UM/UIM insurance coverage C. Register your car in the TexasSure database

Purchase UM/UIM insurance coverage

Which of the following is a sign that the brakes of a car that you're test driving might be faulty? A. The car tends to stall. B. The car pulls to one side. C. The gears make a grinding noise.

The car pulls to one side

When you buy a used car, you must have the car re-registered if: A. The seller refuses to accompany you to the tax office B. The original paperwork has been lost C. The seller keeps the license plates

The seller keeps the license plates

Registration receipt

The sheet that your registration sticker is attached to If you buy a used car, make sure you get the vehicle's registration receipt from the seller. You must present the registration receipt to a law enforcement officer if asked.

When the title (Certificate for car ownership) must be assigned

The title must be assigned to the buyer within 20 days of purchasing a vehicle (or 45 days if the vehicle is being financed by the dealer).

How insurance coverage works

To obtain insurance coverage, you must pay a premium, which is typically paid every month but may also be paid in a single sum. You must pay the insurance premium regardless of whether you need to make an insurance claim.Moreover, your insurance policy will specify the deductible you will have to pay towards any loss covered by the policy. For instance, if your policy has a $1,000 deductable and you are in a collision that results in $5,000 in damages, you will have to pay $1,000 and the insurance company will pay $4,000.In general, policies with lower premiums have higher deductibles, and vice versa. Choose a policy with a premium and a deductable you can afford.

TexasSure program

To reduce the number of uninsured drivers, Texas has established the TexasSure program that allows law enforcement agents to immediately confirm whether a vehicle is insured. This prevents drivers from demonstrating their financial responsibility with a counterfeit or expired insurance document.If you are stopped by a law enforcement agent, he or she will consult the TexasSure database to determine your insurance status. Nevertheless, you are still required to carry proof of financial responsibility with you whenever you drive.

Test Drive (Pre-Purchase Inspection; what you should do)

When you test drive the car, try to drive at 20 to 30 mph beside a pavement line or side wall so you can test the wheel alignment. Roll down the window so you can hear if the car is making any unusual noises.Whether you're buying a new or used car, you should take the time to perform the inspection to your satisfaction. Don't let the seller rush you or pressure you into a decision. If you make the wrong decision, you could be stuck with the consequences for a long time.

Factors that influence the decision to buy a car

Will you drive your car to school, work, or sport activities? Will other family members use your car for transportation? Is there any family vehicle already available that you can use during the hours you expect to drive? Do you have alternatives to driving a car, like taking public transportation or biking? What kind of vehicle will be most appropriate for the tasks for which you intend to use it?

You are eligible for protection under the Lemon Law if:

Your car has a serious defect or abnormal condition The problem is covered by a manufacturer's warranty You report the problem to the dealer or manufacturer within the term of the warranty You have given the dealer and manufacturer a reasonable opportunity to correct the problem and sent the manufacturer written notice of the problem The problem persists, causing malfunctions or safety hazards You file a Lemon Law complaint in a timely manner

liability insurance

basic policy that you are legally required to obtain as a Texas driver Your liability insurance will cover damages and injuries you cause up to the amount specified in the policy. Liability insurance can be used to compensate the injured party for medical costs, funeral costs, lost wages, car rental, repair and replacement costs, as well as to cover punitive damages awarded by the court. Typically, liability insurance can also be used to pay attorney fees if you are sued because of the crash.

Insurance policy

financial contract between a policyholder and an insurer. The terms of the policy, including the kinds of losses that the insurance company will pay for and the situations in which the insurance company can reject a claim, will be specifically stated in the contract. Before you purchase an insurance policy, you should read the contract carefully. Don't rely on the person selling you the policy to accurately describe its contents, as it may include special terms that would make it harder for you to file a claim.

Texas Automobile Insurance Plan Association

offers only liability, PIP, and UM/UIM policies, and only to the minimum limits required by law. As with regular insurance companies, if you do not want PIP or UM/UIM coverage, you must decline it in writing.For almost all drivers, TAIPA insurance will cost more than coverage provided by a private insurance company. In addition, when you receive a ticket or are involved in a collision, you will be charged a substantial surcharge. Under TAIPA, you may face a surcharge as expensive as your premium for a severe violation!

stereo equipment endorsement

provides coverage if stereo equipment that is not permanently installed in your car (such as

Texas Motor Vehicle Safety Responsibility Act (TRC §601.051)

requires every driver to maintain financial responsibility for any vehicle he or she operates on public roads. This means that you must be able to meet certain financial obligations resulting from a collision you cause while driving, or a collision that occurs as a result of your ownership or maintenance habits.

Rental reimbursement coverage

will pay for a rental car when the policy holder's vehicle has been stolen or is being repaired.

Towing and labor coverage

will pay for towing a car following a wreck or breakdown, or for performing labor on your car (such as changing a tire) at the location where it became disabled.

Comprehensive policy

will pay to repair or replace your vehicle following theft, fire, vandalism, damage caused by an animal, or "acts of God" (such as a tree falling on top of it). Like a collision policy, a comprehensive policy will pay up to the current value of your car less the deductable, and it may also pay for the use of a rental car while yours it being repaired. A comprehensive policy will be required if you lease your car or borrow any money against it.

Medical payments policy

will provide compensation for medical treatment or funeral expenses for the policy holder and his or her family members, as well as passengers in his or her car, regardless of who is responsible for the crash. It also protects members of the policy holder's family who are hit by a car as a pedestrian or bicyclist.Payouts are generally provided for minor injuries, the use of an ambulance or ER, and the deductable on a major medical insurance policy. However, it is not intended to cover all medical bills and you are not required to obtain it. In addition, you will not be allowed to collect from two separate policies for the same medical bills.

what to do If you don't own a car but borrow or rent cars often

you should obtain non-owner liability coverage. A non-owner policy will pay for any damages or injuries you cause while driving a borrowed or rented car, other than damages to the car you are driving.

Monroney sticker

All new cars are required by law to have a Monroney sticker attached to the side window that includes information about the car's price and features. In addition, a supplemental dealer sticker may be affixed that indicates dealer-installed options and the price the dealer would like to receive for the car.Most dealers are willing to bargain, often discounting the sticker price of a car by 10 to 20 percent. By knowing what you're looking for, you'll be in a better position to make a deal. If possible, bring an expert to help you negotiate.

What to do before you settle on a car

Before you settle on anything, research the available options so you can make an informed decision. The age, type of vehicle, and optional features included with the car will all affect the price. Determine how much you are willing to spend and whether you need extras like a GPS system or four-wheel drive. By being a patient and informed consumer, you will be less likely to be pressured into a decision you can't afford!

What to do once you and the dealer have signed all the paperwork

Before you sign a contract to purchase or finance a car, be sure you are making a decision you can afford. Once you and the dealer have signed all the paperwork, get a copy of the signed contract before you take possession of your car.If you fail to make payments that you owe on your car, it can be repossessed. Moreover, your credit history will be damaged, making it more difficult and expensive for you to get a loan in the future. If you finance or lease your car, you may also be required to purchase more expensive car insurance.

what you should before you decide on the car you want to purchase

Check the most recent car buyers' guides at a library or bookstore, or research car features and prices for yourself on the Internet. You will be better able to compare similar models and may find out how much a dealer will negotiate. Shop around by checking out dealer showrooms and local advertisements. Identify and test drive several options before coming to a final decision. If you know a car model is right for you, consider having a dealer order it for you if you don't see it on the lot. While this may cost you extra money, you'll be happier with the car you really want rather than an available substitute.

discounts on insurance rates are typically available for demonstrating a responsible driving attitude by:

Completing a defensive driving course or a driver education course for young drivers Earning good grades as a student Having safety features in your car including air bags, seat belts, daytime running lights, antilock brakes, and antitheft devices Having a good driving record and claim history when renewing a policy Having multiple cars on the same insurance policy Having a concurrent homeowner's policy Consult your insurance agent to find out if you're eligible for an insurance discount.

What you should ask yourself in the test drive (Pre-Purchase Inspection)

Does the engine start, run, and idle smoothly, accelerate without hesitation, and demonstrate sufficient power? Does the transmission system allow you to shift gears smoothly and without grinding or jerking? Do the brakes (including the parking brake) stop the vehicle adequately without pulling to one side? Does the steering system work smoothly and correctly? Do you hear any noises when you turn the wheel? Do advanced systems like antilock brakes and four-wheel drive function as expected?

what to do If you have been the victim of a collision, and the other driver's insurer may attempt to get you to sign a settlement, or may refuse to pay if the other driver denies fault.

Don't sign a release unless you are satisfied with a settlement. You may want to ask your doctor about your anticipated medical costs, and consult a lawyer, before making a decision. Get the personal information of independent witnesses to the crash and provide it to your insurance company. This information may be necessary to resolving the dispute

Which of the following is not recommended when inspecting a car for purchase? A. Don't take too much of the seller's time. B. Bring a list of questions about the car. C. Try to arrive to your appointment early.

Don't take too much of the seller's time.

In order to protect yourself if you have a dispute with another driver's insurance company, you should: A. Get the names and addresses of witnesses to the crash B. Sign a settlement as soon as you are offered one C. Deal with the company personally rather than through your insurer

Get the names and addresses of witnesses to the crash

what happens If you are uninsured and cause a collision

If you are uninsured and cause a collision, you will be personally responsible for covering the losses sustained by the other people involved. Without insurance, it could take you years to pay for the damages resulting from a collision. Moreover, if there is a judgment against you, you will be unable to reinstate your license until you have satisfied the judgment or have entered into an agreement to pay the judgment in installments. You will have to pay an additional fee of $100 when you have your license reinstated.

procedure for obtaining a title

If you buy a car from a dealer, the dealer is required to file the title paperwork on your behalf. If you buy a car from an individual, you must accompany the seller to your county tax officeto make sure the title is transferred to you. You will also be responsible for paying the motor vehicle sales tax (6.25%) on the car at this time. The title must be assigned to the buyer within 20 days of purchasing a vehicle (or 45 days if the vehicle is being financed by the dealer).

What to do if you decide to purchase a used car

If you decide to purchase a used car, ask a mechanic that you trust to assess its condition and address any repairs that need to be made. Find out the car's Vehicle Identification Number (VIN) before purchasing so you can get a full history report that shows if the car has ever been in a collision or damaged in any way.

If you have questions about filing a Lemon Law complaint

If you have questions about filing a Lemon Law complaint, call the Consumer Affairs Section of the Texas Department of Transportation, Motor Vehicle Division at 1-800-622-8682.

what to do If you have trouble getting your insurance company to recognize your claim

If you have trouble getting your insurance company to recognize your claim, try to resolve the problem yourself by talking to your agent or a company representative. Sometimes direct communication is enough to resolve the problem.If the dispute continues, you may be able to receive help by filing a complaint with the Texas Department of Insurance. Even though TDI does not have the authority to resolve questions of fact, it may be able to encourage the insurance company to review your problem more thoroughly.

How the car you choose to drive determines the rates your parents are charged for putting you on their policy

If you only drive cars that are primarily used by other family members, your rate will be based on the household car that is most expensive to insure. If you are the principal driver of a particular family car, your rate will be based on that car. If you end up purchasing your own car, you may be required to obtain a separate policy for yourself.

Inspection sticker

In addition to having its registration renewed every year, your car must pass an annual safety inspection. After your car passes the inspection, you will receive an inspection sticker that you must place on your windshield underneath or next to your registration sticker. The two stickers cannot be more than six inches apart.If you buy a new vehicle, you are not required to get a safety inspection for the first two years you own the car. If you buy a used vehicle, you must get a safety inspection before the current inspection sticker expires. Keep in mind that while the registration and inspection stickers are independent, usually they will both expire in the same month.

Comprehensive Loss Underwriting Exchange (CLUE)

In general, insurance companies do not wish to insure drivers who have demonstrated high-risk behavior on the road. When you apply to purchase or renew an insurance policy, the insurance company will review your driving history and assess your risk factors. If you are deemed a risky driver, the company may decline to approve or renew your policy.Many companies use the Comprehensive Loss Underwriting Exchange (CLUE) to learn about the insurance claims you have filed in the past. You can review the auto and personal property report that insurance companies use to determine your eligibility online. Federal law allows you to request one free copy of this report every 12 months.

Difference inexperience drivers have to pay to the normal rates

Inexperienced drivers generally have to pay significantly more for insurance. Typically, an inexperienced driver will have to pay approximately 250% of normal rates in his or her first two years of driving, and approximately 200% in his or her third year. While you may wonder why you should pay so much for insurance as a young driver, consider this: without insurance, driving could be restricted to people with enough money to pay for any damages they cause. By paying more now, you can get on the road earlier, gain experience, and have your rates reduced as you improve.

What you should look out for under the hood in the Pre-Purchase Inspection

Look for signs of oil or fluid leaks in the engine compartment and try to make sure that nothing has been removed. Activate the engine and check under the hood for abnormal smells and clattering and hissing noises. Look on the ground beneath the car for fluid leaks. Check underneath the car for rust, scrapes, and loose or missing parts such as bolts or cables.

Problem with buying a car for superficial reasons

Make sure you don't choose a car for superficial reasons. Buyers often focus too much on features that have nothing to do with how they'll be using their car: for instance, color is the main factor that people consider when buying a car.If you choose a car because you like the way it looks, you're more likely to find yourself complaining about its performance or its costs sooner or later. You're most likely to be satisfied for a long time if you focus on factors like safety and performance when buying a car.

If you need to make a claim against your own insurance policy following a collision, you should:

Make sure you get an appraisal for car damages. Your claim will be considered by an appraiser that you hire and one hired by your company, as well as an arbitrator. An appraisal is the best way to determine the value of your loss. Find out how your claim will affect your insurance rates when you renew your policy. Any crash reported on your driving record may affect your rates in the future. Be prepared to negotiate with your insurance company concerning the worth of your car and the value of the damages. A company might raise its offer if you can show that your car could sell for a higher price in your area.

The most common way that drivers choose to ensure that they can cover the costs of a collision is with a motor vehicle liability insurance policy. However, Texas will also allow you to establish financial responsibility by:

Making a deposit worth $55,000 with the state comptroller or a county judge Taking out a surety bond capable of meeting the state's minimum insurance requirements with a licensed agency Obtaining a certificate of self-insurance from the DPS

Insurance for High-Risk Drivers (Texas Automobile Insurance Plan Association) (TAIPA)

Not all drivers will be able to find an insurance company willing to extend them coverage. However, since Texas requires that all drivers have auto insurance, the Texas Automobile Insurance Plan Association (TAIPA) has been established to provide coverage to drivers declined by other insurers. If you are refused insurance by two insurance companies, you can apply for TAIPA coverage. TAIPA coverage is available through licensed insurance agents, not through TAIPA itself. If you go a year without tickets or crashes, your agent may allow you to apply for a normal policy with lower insurance rates.

Following a collision, your insurance company requires you to:

Notify the company promptly and provide the names and addresses of witnesses and injured persons. To ensure your claim is paid in a timely manner, first make a report by phone, and then follow up in writing. Send the company copies of any notices or legal papers you receive concerning the collision. Cooperate with the company's investigation. A proof-of-loss form and a medical exam may be required.

what happens once a car has been registered

Once a car has been registered, its owner will receive two official Texas license plates for the car. License plates show the unique number assigned to the car by the state. License plates must be displayed clearly on the front and back of the car and the license numbers must not be obscured in any way. You can be fined up to $200 for not displaying both license plates.Texas offers many specialized license plates associated with specific organizations. Contact the Texas DMV to find out more about obtaining one of these plates.

depreciation

Over time, your car will become worth less and less because of normal wear and tear and the availability of newer vehicles with more advanced technology. This process is known as depreciation. As soon as you drive your car off the lot, it becomes a used car rather than a new one, and you won't be able to sell it for as much as you paid.Cars depreciate especially rapidly during the period immediately after buying a new car, and then more slowly as the car gets older. Even if the number of miles you travel remains relatively low, your car's resale value will decrease over time.

What the amount you spend on your car will be based on

The amount you spend on your car will be based on costs that fluctuate depending on how much you actually drive (such as gasoline, replacing tires and other components that wear out, and oil changes) and costs that remain relatively stable even if you don't use your car that often (such as insurance, registration, and depreciation).

What you should check in the Pre-Purchase Inspection

The body: Look for signs that the car has been repainted or that body panels have been repaired or replaced. The tires: Inspect the condition of each tire, including the spare, making sure that their brand, size, and tread width are consistent. The suspension: Make sure the car sits level. Bounce each corner of the vehicle to see if any responds differently or makes a creaking noise. The frame: Check inside the trunk and wheel wells and under the sides of the vehicle for signs that the frame has been straightened following a crash. The interior: Make sure that all seat belts, window cranks, door locks, dashboard controls, seat adjusters, interior lights, and accessories are present and operate correctly. Check the upholstery, dashboard, and carpet for signs of damage. The gas cap and filler neck: Remove the gas cap to check inside the filler cap. Make sure the gas cap is tightly secured when you replace it.

Penalties for driving without insurance

The first time you are convicted of driving without insurance, you will be fined between $175 and $350. You will be fined up to $1,000 for subsequent violations of the state's financial responsibility law. If you are convicted of driving without insurance more than once, your license and registration will be suspended and your vehicle may be impounded. If you drive without insurance and without a valid drivers license, you will be penalized with a fine of up to $2,000, a 180-day jail sentence, or both. The penalties for driving uninsured and unlicensed will be doubled if you cause a collision that results in serious injury or death.

Expenses associated with buying a car

The purchase price of a car The ongoing costs of maintaining and fueling the car Insurance payments Registration and inspection fees If you're unable to consistently meet your financial responsibilities as a car owner, don't buy a car!

Different options for purchasing a car

There are different options to choose from when purchasing a new or used car. While it is generally best to pay in full, many car buyers pursue financing arrangements that allow them to make affordable payments every month. In many cases, you may also be able to lease the car without purchasing it outright.Always be careful to read and understand all provisions when signing any financing agreement. Sometimes you can get a better deal by contacting lenders directly rather than accepting the financing offered by your car dealer.

When you should do the pre-purchase inspection

Try to arrange with the seller to see the vehicle after it has been sitting overnight so you can see how it starts first thing in the morning. You should always inspect a vehicle during the day, when there is plenty of light. If you have scheduled an appointment with a private seller, try to arrive 15 to 20 minutes early as the seller may be preparing the vehicle for your visit. Do not be afraid to ask the seller to show or demonstrate features of the car. Always ask to see maintenance records.

Factors that cost of insurance premium is based on

Vehicle type: You will pay more to insure an expensive car or a car that costs more to repair. Usage habits: Your rates will be higher if you drive your car to and from work regularly, or if you use your car for business. Credit score, education, and occupation: While not directly related to driving, these factors have been statistically correlated with an individual's chances of being involved in a collision. However, an insurance company cannot deny you coverage based solely on your credit history. Age, gender, and marital status: Male drivers under 25 and unmarried women under 21 have the highest rates. Generally, a driver's insurance premiums decrease as he or she gets older and gains driving experience. Geography: Drivers in urban areas typically have higher rates due to the increased risk of theft or collision. The value of your deductable: Drivers with higher deductibles generally pay lower rates.

Insurance Card

When operating a vehicle, drivers must carry proof that they have met the financial responsibility requirement. For most people, this will be an insurance card issued to them by an insurance company. However, you may also display evidence of financial responsibility using your cell phone if it is equipped with this capacity.

Collision Coverage

When you are involved in a collision and the other driver is responsible, his or her insurance policy will generally pay the costs of your damages. However, for collisions where you are at fault, you should obtain a collision policy. If your car is damaged in a collision, this coverage will pay to fix the damages or replace it, regardless of who is at fault. The highest amount your insurance company will pay is the current value of your car, less the deductable. A collision policy covers members of the policy holder's family, their passengers, and others driving the policy holder's car with his or her permission. If you lease your car or use it as collateral for a loan, you will be required to obtain collision insurance.

What to do in relation to car registration based on where you get it from

When you purchase a car, you must also make sure it is registered to you. It is illegal to drive a car on Texas roads if it lacks registration or if its registration has expired. If you buy a new vehicle, the dealer will fill out the registration paperwork for you. If you buy a used car with its current license plates, the registration will be transferred to you when the vehicle becomes titled in your name. You will be responsible for renewing the registration before its next expiration date. Some vehicle sellers opt to keep their license plates. If you buy a used car from such a seller, you will have to re-register the car when the title is transferred to you.

what you get in addition to receiving your license plates

When you receive your license plates, you will also receive a registration sticker for your car. This sticker, which indicates the month and year that your current registration expires, should be affixed to the lower left hand corner of your windshield. If you buy a used car that retains its original license plates, you must renew the car's registration by the date indicated on the current registration sticker. Depending on when the owner last renewed the registration, it could be anywhere between a couple of weeks and nearly a year before the current registration expires.

Uninsured/Underinsured Motorist (UM/UIM) Coverage

While every driver is legally obligated to have insurance to operate a vehicle on public roads, some drive illegally without insurance, with an expired insurance policy, or with an insurance policy unable to cover all the damages they cause in a collision. Uninsured and underinsured motorist policies provide payments for losses from a collision caused by a driver without adequate insurance or a hit-and-run driver. A UM/UIM policy will pay for medical bills, lost wages, pain and suffering, and permanent and partial disability, as well as vehicle repairs and replacement, for members of the policy holder's family, their passengers, and others driving the policy holder's car with his or her permission.Like PIP coverage, insurers must offer you UM/UIM coverage. In general, a UM/UIM policy offers the policy holder the same amount of coverage as his or her liability insurance policy. If you wish to decline this coverage, or if you want to request a lower amount of coverage, you must submit a specific request to your insurance company in writing.

Underwriting

While you must pay a premium (monthly or annually) to maintain your insurance policy, the cost of this premium can vary considerably from driver to driver, even for the same level of coverage.Insurance companies use a process called underwriting to determine how likely a policy holder is to make a claim on his or her insurance. Drivers who are deemed to be statistically more likely to cause a collision will be charged a higher premium for a liability insurance policy, as these drivers are likely to cost the insurance company more.Each insurance company uses its own underwriting formula for assessing risk factors, so get quotes from several companies before deciding which policy is right for you.

Receiving the registration renewal notice

You should receive a registration renewal notice in the mail before your current registration expires. To renew your registration by mail, you must return this form, along with the registration fee and proof of insurance, to your county tax office. If you don't receive a renewal notice, you are still required to renew your registration. You must visit the county tax office in person with your license plate number, VIN number, or registration receipt from the previous year. If you move, you should notify the DMV of your new address immediately to make sure you receive your renewal notice.

How often registration must be renewed

Your registration must be renewed every year. You may renew by mail, in person, or, in some counties, online. Once you submit your renewal application and pay the registration fees, you will be sent a new registration sticker and receipt. To save you time, you are allowed to renew your vehicle registration for up to three years when you submit the renewal application. You will receive a single registration sticker that will remain valid until your registration has to be renewed again.Your renewal application can be refused for a number of reasons, including the condition of your car, a lack of vehicle insurance, or a failure to pay traffic tickets or other fines.

personal injury protection policy

covers the costs of reasonable and necessary medical expenses when the policy holder or his or her family members are involved in a collision. In addition, PIP policies will pay up to 80% of your lost income as well as the cost of hiring a caregiver if you are too injured to perform regular household tasks.When you purchase an insurance policy, the company is required to offer you $2,500 in PIP coverage, though you can purchase more. If you don't want PIP coverage, you must decline this coverage in writing.

factor most likely to raise your insurance rates

record of careless driving. You will have to pay more for insurance if you are cited for traffic violations or involved in a collision. When you are found at-fault for a collision and an insurance claim is filed for damages, your rates will be higher for at least three years.A history of driving while uninsured can also lead to increased insurance premiums. If you operate a vehicle without insurance for more than 30 days in the 12 months before you apply for insurance, you will face increased rates.

Nonrenewal

refers to a company's decision not to renew your policy when it expires. An insurance company can only refuse to renew your policy until you have been covered for at least 12 months. If a company decides not to renew your policy, it must inform you 30 days before your coverage expires.In general, a company's refusal to renew will be based on your behavior as a driver. A company cannot refuse to renew your policy for claims or crashes that cannot reasonably be blamed on you, unless such incidents occur multiple times within a 12-month period.

Cancellation

refers to a company's decision to terminate your policy before it expires. During the first 60 days you have a policy, your insurer may cancel your coverage for any lawful reason, including a ticket or collision. However, the company cannot refuse to cover damages that occurred while you were still under the policy.If the company decides to cancel your policy, they must send you a written notice at least 10 days in advance of the cancellation. If you have already paid for more insurance than you received, the company must refund the difference. In general, your insurance company cannot cancel your policy once it has been in effect for more than 60 days, except if you violate the terms of your contract. Your policy can be cancelled at any time for failing to make premium payments, filing a fraudulent claim, or having your license or registration suspended or revoked.