Home, Car, Life, Pet Insurance
Thereís no doubt that car insurance is indispensable these days, but there are ways in which the cost can be reduced, and it is worthwhile to bear these in mind when seeking insurance of this nature.
Car ownership in Australia is already widespread, and the number of cars on Australian roads is expected to increase yet more until at least 2017/18, so the market is attractive. In the last five years, online-only providers of car insurance have grown at an astounding rate, which has forced existing insurers to innovate faster. Non-insurance companies have also entered the market, bringing with them large networks. Competition is so great that shopping around is the best way to save money on car insurance.
The internet is an invaluable resource for people seeking car insurance. Quotes can be compared easily. Online providers allow you to escape 'phone queues and needless chatter and generate a quote within minutes. With no large branches, the cost may well be lower. Progressive became the first company to sell car insurance over the internet in 1997. Read more
Private mortgage insurance is a policy that is taken out to assure lenders that they will receive their payments should the borrower default on a loan. This type of policy is different from life insurance taken out on the mortgage, because it leaves the borrower no benefit should they become unable to pay the mortgage due to disability or death. On the surface, it seems that mortgage insurance is primarily beneficial to the lender, because it is designed for his or her protection. Yet there are advantages to both parties in certain circumstances, allowing borrowers to purchase a home with a lower down payment. Before perusing real estate listings on sites like homesales, it's helpful to take a closer look at this type of insurance plan to see how it works and who benefits.
How Mortgage Insurance Protects Lenders
The most obvious benefit of mortgage insurance is for the lenders. This insurance policy helps ensure that if the borrower ends up not defaulting on the loan, that the lender will still get their money back. In Australia, mortgage insurance is payable if the LTV or loan-to-value ratio is above 80%. It may also be applicable when this ratio is at 60% for low-doc loans which are given to individuals who are self-employed or otherwise unable to prove income with the usual documents. Premiums can be determined using a sliding scale depending on the initial loan amount and this ratio. There may also be an additional stamp duty on the premium. Read more