Chapter 16 - Buying and Owning a Vehicle

Question 1

purchase price

Answer 1

the price a person a willing to pay for a car

Question 2

depreciation

Answer 2

the vehicle’s value; it drops steadily over time

Question 3

this law requires you to prove that you can pay for damage you cause while driving

Answer 3

financial responsibility law

Question 4

a specified amount of money for coverage over a specified period of time, to a insurance company

Answer 4

premium

Question 5

protects the driver who caused the collision

Answer 5

liability insurance

Question 6

covers the driver who it at fault against claims

Answer 6

bodily-injury insurance

Question 7

protects the driver who is at fault against claims for damages to another person’s property

Answer 7

property-damage insurance

Question 8

this insurance pays medical and funeral expenses for bodily injuries sustained by occupants in an insured vehicle

Answer 8

medical payment insurance

Question 9

blue book

Answer 9

lists the average price paid to dealers for various used vehicles

Question 10

insurance that covers damage to your vehicle from non-collision events (fire, theft, flood, wind, storms, etc.)

Answer 10

comprehensive insurance

Question 11

the set amount of money an insured must pay for damages that is not paid by insurance company

Answer 11

deductible

Question 12

insurance coverage that covers the cost of having your vehicle towed if it becomes disabled

Answer 12

towing coverage

Question 13

written guarantee that the seller will make repairs for a time period

Answer 13

warranty

Question 14

written agreement between you and your insurance company

Answer 14

policy

Question 15

type of insurance that is not concerned with who is to blame

Answer 15

no-fault insurance

Question 16

younger, male, unmarried, type of car, and miles driven

Answer 16

can mean higher insurance premiums

Question 17

most insurance companies reward low-risk drivers with

Answer 17

reduced premiums

Question 18

improvements in engineering of vehicles have resulted in smaller amounts of

Answer 18

exhaust emissions

Question 19

one of several gases in exhaust

Answer 19

carbon dioxide

Question 20

most air conditioners contain

Answer 20

CFC’s

Question 21

take these items to a hazardous waste collection center

Answer 21

vehicle batteries, oil filters, and fluids (oil, gas, transmission fluid, brake fluid, antifreeze)