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How To Check You Have the Right Insurance Cover

If you’re a safe driver with a good, no claims history, then paying for car insurance can seem like a complete waste of money. After all, you’re not actually getting anything in return for all your hard earned cash are you?

However, as anyone who has ever been involved in a car accident will tell you, the importance of having the right insurance policy with a good insurance provider should not be underestimated. If and when you do need them, knowing you will be well looked after and protected provides peace of mind and can help turn a terrible situation into something more positive and bearable. In that case, a good policy is priceless.

But how do you know what cover you need and what other information should you be aware of to make sure you are getting the very best deal?  Car insurance from Captain Compare, or another online car insurance comparison site helps to take some of the legwork out of searching for good deals, but you need to know what you’re looking for in the first place.

Here is our guide to the various different types of car insurance that should help you make the right choice:

Compulsory Third Party Insurance (CTP)

Compulsory Third Party Insurance (or Greenslip as it’s better known as in NSW) is the very minimum insurance cover you can legally have and it applies to all states in Australia. It protects vehicle owners and drivers who are legally liable for personal injuries caused to:

  • Your passengers
  • Other road users such as; drivers, pedestrians, cyclists and motorcyclists

It also covers you for injury caused through the use of a trailer.

In most states CTP is included when you register your vehicle.  However, in QLD and NSW you have the option of choosing your insurance provider.

CTP does NOT cover you for any damage to your vehicle or anyone else’s vehicle.  Damage to property is also excluded from this type of policy.

Third Party Property Damage

Typically, this will be the most inexpensive type of cover you can buy, and is the minimum non-compulsory policy after CTP.

It will cover you in the event of damage caused by your vehicle to other people’s vehicle or property.

Third Party Fire and Theft

In addition to all the cover provided by Third Party Property Damage, this type of policy also covers you against theft or fire damage to your car. A maximum level of cover will usually apply, so check the small print for details.

Comprehensive Car Insurance

This is an insurance providers highest level of cover, and will offer you the most features and benefits of any policy.  Comprehensive cover covers the cost of repairing damage to both your vehicle and others, in addition to protecting you against theft or loss.

Additional benefits usually include a hire vehicle, towing after an accident, emergency repairs, and much more.  Carefully check what each insurer is offering you, and decide what would be of most benefit if the worst were to happen. Although it is important to find a good deal, it’s more important to choose the policy with the best cover for your money. Cheap isn’t always cheerful!

Reasons Why Student Loan Can’t be filed for Bankruptcy

When it comes to student loans, you need to be very cautious and before you even jump the gun; you must first draw up a definitive plan that will help you repay the loan effectively. This does not imply that failure to do so will result in grave issues. However, you will face certain financial issues that you must not face at a young age. Essentially, if you take a student loan, the period for which you repay the amount may increase over time in case of your inability to repay the loan. At the most you are allowed debt settlement but filing for bankruptcy is not a benefit that you can avail of. Emachines settlement is fast gaining popularity but it does not change the rules for student loans. You can, however, opt for the Chapter 13 of bankruptcy instead. As per this chapter, the amount that you pay on a monthly basis can either be brought down to a lower amount as in the case of debt settlement or the creditors may permit a slight amount of delay in the repayment process.

There are certain debts that are non-dischargeable and student loans can be effectively categorised under this. Filing for bankruptcy in case of student loans is possible however, this holds true only in very extreme situations wherein the student has suffered a severe accident leaving him disabled or a grave situation of similar magnitude. However, this does not usually happen and is a situation that occurs in extreme rarity. Therefore, you must be clear of the fact that at some point or the other you will be required to pay off your student loan.

As in the case of medical bills or those pertaining to credit cards, a student loan is always classified as a non priority unsecured debt. Therefore, based on the guidelines set by the repayment plan of Chapter 13, you need not pay off the full amount of the loan if you face financial difficulties. The repayment plan is then decided based on the incomes that you earn and the expenses that you incur. Based on the term of your chapter 13 bankruptcy, you will be given some amount of liberty in repayment in terms of the time and amount. However, once this period is over, you will be required to pay the remaining amount in full. Emachines settlement is also an option that people can avail of. Given below are some benefits of filing for the Chapter 13 of bankruptcy.

1.)   Once you file for the chapter 13 bankruptcy, you automatically get safeguarded from creditors and they are not allowed to call, harass or trouble you with incessant phone calls for loan repayment. This helps control the situation and prevents you from going into panic mode. Therefore, it leaves you with ample time to devise a strategy to repay the loans without the creditors breathing down on your neck. You can buy time of up to 5 years to fight off the creditors. However, this time period may vary for different people.

 

2.)   Because of the benefit provided by the automatic stay of chapter 13 bankruptcy, you are permitted to not make any repayment for your student loan for the given time period of the bankruptcy. This is solely dependent on the income that you earn during this period. However, this is only limited to the period of bankruptcy. You must not forget the fact that the longer you delay, greater will be the interest that will keep piling up during this period, which you will be required to pay in full. Therefore, you need to be very cautious especially when dealing with student loans.

 

Author’s bio:

Millicent Greer is a debt settlement lawyer who has previously dealt with emachines settlement. She offers her services for a wide spectrum of debt related issues including settlement, bankruptcy and even mortgage. She also loves baking and runs a food blog. To know more visit http://debt-settlement-review.toptenreviews.com/

A beginners Guide to Business interruption Insurance

One of the most important insurance cover for any business is that of loss of profit. Business interruption insurance covers the loss to gross profit. Theoretically speaking, this loss can be calculated in terms of the reduction in turn over and increased cost of working. But, intangible aspects of the business might make complicate things a bit.

To begin with, it is worth noting that property damage insurance and business interruption insurance are generally included in one insurance policy. The later is triggered by physical damage to insured property. The maximum period of indemnity and the insured gross profit will have to be agreed at the time of inception only.

How to calculate reduction in turnover?

For calculating the reduction in turnover, subtract the turnover during the period of interruption from the turnover achieved last year during the same time period.

This is particularly true for the manufacturing business. When there is a reduction in the turnover, the cost of the business also a decline. For instance, the cost of material, packaging and freight all go down. To accommodate these reduced costs, the rate of gross profit is then multiplied by the reduction in the turnover.

What is rate of gross profit? It is the percentage of the business turnover, which was the gross profit in the last finical year.  Taking the sum total of the reduction in turnover and the rate of gross profit will give you the value of claim.

But, as simple as it sounds, there are a number of broad adjustments clauses included in the definitions of the standard turnover that play an important role in determining the claim value.

How to calculate the rate of gross profit?

The simple formula for calculating the gross profit is (based on the previous year stats):

[Turnover x closing stock] – [uninsured working costs x opening stock] = Gross Profit

It is important to calculate the gross profit and the rate of gross profit because it is going to have a huge bearing on the insurance outcome. Insurance brokers in Melbourne will work this out for you. There are some policies that will list the uninsured working costs, but the other might not do that. In general uninsured working costs are referred to the costs are directly proportionate to the turnover. For instance, if business operation comes to standstill, there will be no packaging costs too.

The real problem arises when the uninsured working costs are not clearly listed. What has to be considered and what has to be left out, has to be carefully seen through. It becomes tricky for even the most experienced insurance consultants when there are huge changes in the working costs over the last year. For instance, if the costs of the goods have increased significantly over the past one year, so much so that it makes the rate of gross profit drop down drastically, there is every possibility that the ultimate claim response goes lower. In case, the cost of the goods sold has reduced, who knows the same rate of gross profit might increase manifold.

The business interruption insurance cover seems to be a tad bit more complicated than other insurance covers; therefore, it is advisable to seek expert advice on Industrial special risks insurance before making any claims.