RESPONSIBLE OWNERSHIP ALABAMA COURSE OF STUDY #8 and #9 Explain requirements mandated by the Alabama Department of Public Safety regarding motor vehicle.

RESPONSIBLEOWNERSHIP

ALABAMA COURSE OF STUDY #8 and #9Explain requirements mandated by the Alabama Department of Public Safety regarding motor vehicle registration and the Mandatory Liability Insurance Act. Identify responsibilities of owning and operating a vehicle, including factors involved in purchasing a vehicle, purchasing insurance and maintaining a

vehicle.

Requirements regarding motor vehicle registration

•Owners must keep their tag when selling, trading, or transferring ownership of a vehicle. This is commonly called the “tag follows the owner” law.

•This applies to all vehicle tags except the Vintage Vehicle Tag; it remains with the vehicle.

•“Vintage” meaning “antique” (25 years)

“Tag follows the owner law”

If an individual purchases or acquires a vehicle having a current and valid tag, the new owner is required to remove the tag and return it to the issuing official of his residing county.If the tag has expired, the new owner is not required to turn in the license plate to the issuing official.

Two Exceptions to the Tag Follows Owner Law

• Transfer of ownership from a parent to a child of a vehicle displaying Helping Schools, Collegiate, Environmental, or personal tag.

• Transfer of ownership to a surviving spouse of a vehicle displaying any category of distinctive tag or a standard license plate (only if exception one applies; if not, tag must be turned in to issuing agency in 30 days).

Exceptions to the Tag-Follows Owner Law

• Situations where the owner acquires a vehicle requiring a higher license plate classification than his previously owned vehicle (e.g. passenger car to motor home) the owner must:– Request a transfer of his/her valid AL license plate to

his/her newly acquired vehicle.– Turn in license plate to the issuing official– Pay the prorated difference in the registration fees

between previously owned and newly acquired vehicle.

• A new, higher license plate classification will then be issued to the owner.

Failure to Remove Tag •Will require the purchase of a new tag at a rate of $25.50 per tag

•Owners of new vehicles have 10 calendar days to purchase a tag or pay a $10 penalty

•Purchasers of used vehicles also have 10 calendar days to transfer the tag or pay a $10 penalty

What is Needed to Transfer Ownership or Purchase a Tag

• Title Application• Bill of Sale• All other documents in regard to vehicle

including: tag number, decal number, month and year of expiration.

Owner’s Responsibility

• The owner must keep the tag from their previous vehicle to place on their one acquired.

• However, do not put the tag on the new vehicle before transfer is complete in the Revenue Office.

When to Renew• Tags are renewed on a yearly basis depending on

the first letter of the last name. – Schedule available at

http://search.dmv.org/dmv/alabama/tag-renewal • ACT 96 746 requires that motor vehicle owners

retain a copy of the current year registration receipt in their vehicles.

• Upon request owners/drivers must present registration receipt to law enforcement officer.

• It is good to always keep the old one until you get the new one.

For Presentation to Law Enforcement When Required

•A legible copy of the legal bill of sale; or•A copy of the application for certificate of title; or•A valid Alabama temporary registration receipt.

•Keep all these required documents in an envelope in your glove compartment.

Failure to Produce Proof of Registration Documents May Result In

•Guilt of a Class C misdemeanor ; and•Fine of not less than $50•This proof of ownership applies to all vehicles (including leased vehicles) except trailers.

ALABAMA’S MANDATORY LIABILITY INSURANCE ACT

This act became effective January 1, 2001

This act added Chapter 7A to the 2008 insurance law of Title 32, Code of Alabama 1975, Chapter 7A added the following:

--require proof of motor vehicle liability insurance prior to the registration and licensing of motor vehicles;

--provide for the administration and enforcement of the act;

--provide penalties for violations

Mandatory Liability Insurance Act

• No person shall operate, register or maintain registration of, and no owner shall permit another person to operate, register or maintain registration of, a motor vehicle designed to be used on a public highway unless the motor vehicle is covered by a liability insurance policy, motor vehicle liability bond, or deposit of cash.

Mandatory Liability Insurance Act- Alabama requires that driver’s provide proof of insurance at time of registration.- Proof of insurance is required at the time of accidents.- You must carry proof of insurance at all times while in a vehicle. - In the state of Alabama, you must carry minimum liability coverage of at least $25,000 for bodily injury to one person, $50,000 for all bodily injuries, and at least $25,000 for property damage.

Mandatory Liability Insurance Act• Every operator of a motor vehicle subject to the provisions of

Section 32-7A-4 shall carry within the vehicle evidence of insurance. The evidence shall be legible and sufficient to demonstrate that the motor vehicle currently is covered by a liability insurance policy as required under Section 32-7A-4 and may include, but is not limited to, the following:

(1) An insurance card, or temporary insurance card, provided by the insurer under this section.

(2) The combination of proof of purchase of the motor vehicle within the previous 60 calendar days and a current and valid insurance card issued for the motor vehicle replaced by such purchase.

(3) The current declarations page of a liability insurance policy.

Mandatory Liability Insurance Act

(4) A liability insurance binder, or legible copy thereof, certificate of liability insurance, or legible copy thereof, or receipt for payment to an insurer or its authorized representative for a liability insurance premium, or legible copy thereof; provided such document contains all information required in this chapter.

(5) A current motor vehicle rental agreement for the vehicle, which specifies insurance coverage by the rental company or the operator in the minimum amounts, provided in Section 32-7-6(c), Code of Alabama 1975.

Mandatory Liability Insurance Act

• The insurer issuing the liability insurance policy shall provide an insurance card for each motor vehicle insured that shall contain the following information:

(1) The vehicle year model.(2) The vehicle make.(3) The vehicle identification number (VIN).(4) The name of the insured(s).(5) The name of the insurance company.(6) The policy number.(7) The effective date and expiration date, which shall

cover a period of time not to exceed 12 months.

ENFORCEMENT

• A person is guilty of a Class C misdemeanor who:• (1) Operates a motor vehicle unless the motor vehicle is

covered by a liability insurance policy in accordance with this act.

• (2) Fails or refuses to comply with a request by a law enforcement officer for display of evidence of insurance as required under this act.

• (3) Operates a vehicle the registration of which is suspended pursuant to the provisions of this act.

• (4) Displays evidence of insurance knowing there is no valid liability insurance in effect on the motor vehicle as required by this act.

WHAT IS LIABILITY INSURANCE?• This coverage is proof that you will be financially

responsible if you cause damage to property or injure other people.

• It is the most important protection a driver can have, but it only covers you for the limits you have purchased. If a court determines that you have caused more damage than your insurance will pay, you are held personally liable for the cost.

• There are two types of liability insurance: Bodily Injury and Property Damage.

BODILY INJURY LIABILITY

• Pays for claims against the owner if someone is killed or injured and the owner is at fault.

• It covers legal fees, court fees, and lost wages.• It also has 2 limits: one for each person, and a

limit for each accident• This type is sold in blocks of thousands

PROPERTY DAMAGE LIABILITY

• Pays for claims against the owner if property is damaged and owner is at fault.

• The property can be another car, a telephone pole, a tree, a fire hydrant.

• This type is sold in blocks of thousands

OTHER INSURANCE COVERAGES

Many other different kinds of insurance are available to the consumer and it is

important to understand these and choose what is best for your needs in

addition to meeting the minimum requirements of Alabama’s Mandatory

Liability Insurance Act.

UNINSURED MOTORISTS

• Pays damages for you and your passengers bodily injuries caused by a collision with a motor vehicle driven by a legally liable but uninsured or unknown driver.

• Pays for hospital and doctor bills, legal fees, court costs and loss of wages.

• Usually does not cover property damage

COLLISION

• Pays for damage to your vehicle even if you are to blame or involved with an uninsured motorist.

• Covers repairs if your car is damaged in a parking lot or in a parking space in a street.

• This coverage comes with deductible policy, which means that the owner will pay a fixed amount. Ex: The first $100 worth of damages has to be paid before the policy starts paying.

COMPREHENSIVE

• Pays if your vehicle is damaged by something other than a collision, such as theft, fire, explosion, natural disasters, falling objects or vandalism.

MEDICAL PAYMENTS

• Pays for the medical and/or funeral costs for you and your passengers if injured/killed in any collision.

• This coverage does NOT require a legal process to determine fault, it will pay immediate medical costs.

VARIABLES INVOLVED IN PURCHASING AUTO INSURANCE

• If your vehicle is financed through a lending institution you must have full coverage insurance. The purpose is to insure that motorists are financially responsible for damages they may incur.

• You also pay a premium, or set of amount of money, to an insurance company. These payments are made every 6 months or some companies allow monthly payments.

FACTORS THAT DETERMINE PREMIUM RATES

• Your age- drivers under the age of 25 pay the highest premiums. The older you get the lower your rates become.

• Your driving record- Traffic violations, convictions, collisions, and insurance claims can increase your premium costs.

• Mileage per year- the farther you drive, the more your vehicle insurance will cost.

FACTORS CONTINUED

• If you drive to work- car pooling reduces the cost of insurance.

• Where you live- If you live in a city, your insurance costs will be greater than those of a person who lives in the country, due to the difference in traffic patterns.

• Your gender- women pay lower insurance rates than men. Statistics show that men drive more often, take longer trips, and are involved in more collisions

FACTORS CONTINUED• Your marital status—young married men pay

less than men of the same age who are single. Statistics have shown that young married men are involved in fewer collisions than young single men

• The value of your vehicle—the more expensive the vehicle, the greater the cost of insurance.

• The type of vehicle—a sports car or SUV costs more to insure than a larger sedan. A four-cylinder or engine with manual transmission make for lower rates.

There are other responsibilities involved in owning and operating

a vehicle:fuel economy, financing a

vehicle, vehicle maintenance, etc.

Fuel Economy• The most important element in determining the

fuel economy of a particular vehicle is the driving technique of the individual behind the wheel.

• A careful driver can get– 30% better mileage than an average driver– 50% better mileage than a poor one.

Fuel Economy

• Tips for Energy Efficient Driving– Smooth acceleration– Consistent speed– Smooth braking– Avoid prolong idling – Plan route in advance

Fuel Economy

•Calculating Fuel Consumption

•After fill-up record odometer reading•Next fill-up, record odometer reading and record number of gallons required•Subtract two odometer readings and divide number of gallons into answer. •This is the number of miles traveled per gallon.

Fuel Economy

Example

Odometer reading at fill-up 43,927Odometer reading at next fill-up 44,177Gallons required 10Total miles Traveled (44, 177-43,927) 250Miles per Gallon (250/10) 25

Vehicle Maintenance

The Owner’s Manuel provides guidelines for determining the time and mileage span for

periodic checks and maintenance.

The following are the most common maintenance checks to be done on your

vehicle:

Tune UpROUTINE

MAINTENANCE7,500 MILES

OR 6 MONTHS

15,000 OR 12 MONTHS

22,500 MILES OR 18 MONTHS

30,000 MILES OR 24 MONTHS

Change engine oil

Replace engine oil filter

Lubricate steering fluid

Inspect brake lining

Replace air cleaner filter

Replace spark plugs

Inspect drive belt, adjust tension as needed

Drain and refill automatic transmission fluid

Drain and refill transfer case fluid

Auto Maintenance

• Ignoring the recommended service intervals may void the manufacturer’s warranty on your vehicle.–Extremely important!

Auto Maintenance

• Other Routine Maintenance Checks

–Weekly• Oil level• Windshield wiper fluid level• Radiator coolant level

Auto Maintenance

• Other Routine Maintenance Checks– Monthly

• Tire condition• Hose condition• Belt condition• Automatic transmission fluid level• Power steering fluid level• Clean dead bugs from radiator grill• Wax to protect paint

Vehicle Ownership

• Consider the costs involved:Financing (payments), insurance, fuel, maintenance and repairs

• Make intelligent decisions: Drive economically, shop for best values,

perform regular maintenance check• Take care of your investment! ` HAPPY AND SAFE DRIVING!!