Cheap Car Insurance – Car Safety
Car safety may seem to be something that you assume most people take for granted, and really means just making sure it is locked and possible has an alarm and possibly a crook lock as well. It can mean all these things and important as they are, there are several aspects of car safety that are key from an insurance point of view, and do affect your car insurance and how much you pay for it.
Your insurance company will assume or take it for granted that your car is in a good roadworthy condition and fit to drive. It will also assume that the driver is properly qualified and of a legal age to drive. In insurance terms these assumptions are known as warranties and they be implies or explicit. That means they may be spelt out specifically in the policy in clear language or it may just be felt that they are so obvious that they don’t need to be said. Either way that apply and people should be aware of them. If either of these warranties are not complied with, there is chance your insurance company will void the policy.
This is because your insurance policy is a legal document, and if you don’t comply with part of your side of the contract the other side, in this case the insurance company may well turn round and refuse to pay any claim and refund your premium. Not a situation you want to be in, especially if you are a facing a serious law suit for third party damages. Car safety applies to the physical and mental state of the driver, and again it is assumed you are in a fit state to drive the car. This means that if you have been drinking or taking drugs, then your insurance company may well try to void all or part of the contract on the same basis as above.
Car safety is also a factor when applying for car insurance, and the insurance underwriters determining how much you should pay for your car insurance. The factor that normally determines this is where your car is parked at night, either on the street or in a secure lock up such as a garage. If it is kept in a secure place, it is obviously less of a risk and less likely to be stolen than if it is left out overnight on a street. As such your insurance premium should be lower.
Be careful to make sure that your insurance company doesn’t make it a warranty that it is kept locked up overnight. That could be a hassle if you forget or can’t be bothered one night. Also if you buy any locks or security systems for your car and are hoping for a discount from your insurance company, check with them first as they may give discounts only on certain brands or manufacturers that they approve of and will only give you a discount if you buy those or fit their alarm systems.
Top 10 Reasons to Get General Insurance: Make Your Life Risk-Free
For a risk free life, general insurance is a practical option. Every person faces some risk or the other at all times. Risk is the possibility that something unpleasant or uncertain might happen. In such a situation, we need to secure all the things that we own. This security is provided by Insurance. Insurance policies can be divided into 2 categories: General and Life Insurance.
General insurance basically covers property against fire, burglary, etc. It also includes personal cover like accident and health insurance as well as liability insurance which covers legal liabilities. There is a special insurance called professional indemnity which is specifically meant for working professionals. This type of insurance is taken to secure the professional from any loss that may occur during employment.
General insurance has become important in today’s life because it covers almost everything like your home, car and even your health. The various reasons for choosing insurance are as follows:
The most important reason is to get peace of mind. Insurance provides security to every individual against risks or mishaps.
Through insurance the burden and pressure of loss is almost negligible as the loss will be covered by the insurance company under the policy.
You can pay premiums and use it like a saving account and when required in future this account can be used to cover your losses.
General insurance helps businessmen to increase their productivity and earn high profits and they need not keep special reserves to cover their future risks.
Businessmen can lead a tension free life as all the goods and services that are transported outside the state or country can be insured and if there is any loss during delivery none of the parties would have to suffer loss.
Insurance also covers an individual’s health. So if you have health insurance and any accident takes place the hospital bills will be paid by the company.
In case of car accidents, insurance enables you to claim the car repair expenses from the insurance company.
When people take general insurance, the policy holder need not pay for any unforeseen liability as it gets covered under such insurance.
Insurance policies are usually a contract between 2-3 parties where one of them is the insurance company. There are different types of insurances that solve differences between 2 parties where both the parties may suffer and the obligation to pay the losses does not rest with one party.
Personal Insurance For Property Investors
Are you an employee or a self-employed business person dependent on income derived by sweat of the brow? Do you carry any personal debt or debt over your principal place of residence or investment properties? Do you have dependents that rely on you to provide for their financial security, today and in the future? Chances are for most of us the answer to at least one of these questions is a definite yes.
You are then left to make a choice. Do you accept the risk and hope that you will never become sick or disabled and have to stop working or that you will not die prematurely leaving your dependents with substantial amounts of debt and inadequate financial resources. Or, do you plan for and manage the risk by taking out appropriate insurance.
For most of us the prospect of losing our ability to earn income and dying prematurely may seem a little unlikely to give it due consideration. After all it is human tendency to waiver on the side of optimism on such issues and assume that ‘it will never happen to me’. But the reality is that it does happen to people just like you every day of the week. So, how can you plan for and manage these risks? Well, there are a range of different insurances specifically designed to meet these specific risks, the combination of which can provide a comprehensive risk protection plan. Below is a brief overview of the most important personal insurances for property investors.
Income Protection Insurance
Income protection insurance can provide you with an income in the event that you become totally or partially disabled and are unable to work. Income protection insurance provides up to 75% of your pre-disability income. Benefits are payable after the expiry of a selected waiting period and apply for a predetermined period (the benefit period) providing you remain totally or partially disabled.
If you are dependent on earning a salary or wage to support your current lifestyle and to create wealth for you and your defendant’s future than income protection insurance is a must. If you own negatively geared investment property then your need to protect your income is even greater than for most other individuals. Whilst negative gearing is an appropriate strategy for certain investors its success as a strategy revolves solely around your ability to continue earning income. If you lose that ability and do not have income protection insurance then chances are you will be flat out supporting you and your dependent’s lifestyle without your usual income, let alone supporting a negatively geared property portfolio.
Life Insurance
Life insurance won’t do much for you as the insured but it will do a lot for those dependents you leave behind. Life insurance provides your dependents with a lump sum that may be used to pay off any debts you have (e.g. credit card, home loan, personal loans, investment loans etc.), pay for funeral expenses, and to provide an investment amount sufficient to generate enough ongoing income to support your dependents.
If you carry debt (like most property investors) and do not yet have enough financial resources to support your dependents if you were to prematurely die, then life insurance is absolutely critical for you. Losing someone close can be one of the most traumatic experiences in life and one additional pressure that your dependents could do without is that of servicing debt without your income and facing the prospect of going to the market with your investment properties to free up some money to meet living expenses. Given the relative illiquidity of property it may very well take several months before your dependents can liquidate your properties and retire the debt. All of this during a period that should otherwise be spent grieving, not scratching around for money to meet living expenses or dealing with real estate agents and creditors.
Total and Permanent Disability Insurance (TPD)
TPD insurance provides you with a lump sum payment in the event that you become totally incapacitated through injury or illness and satisfy the policy’s definition of TPD. TPD insurance can be used to pay off existing debts, to pay for any medical costs not covered by your health insurance, to pay for any necessary modifications to your home or vehicle, and to provide you with an investment amount sufficient to generate ongoing income to compensate for your lost income.
Once again, if you carry debt and do not yet have enough financial resources to support yourself and your dependants if you were to become disabled than TPD is an absolute necessity, even if you have income protection insurance. Remember, income protection insurance only provides up to 75% of you pre-disability income which for most people is insufficient to support both their existing lifestyle and wealth creation objectives, let alone their increased cost of living as a result of their disability.
Conclusion
When making a decision on personal insurance there is a lot to consider including the types of insurance you require, the amount of insurance you require, the price of the insurance, policy ownership, whether to purchase inside superannuation or outside superannuation etc. Discussion of these issues is beyond the scope of this article but hopefully you now have an appreciation of the importance of personal insurance, particularly as a property investor.