The cost of car insurance - MoneySmart Rookie

MONEYSMART WEBSITE: Tips on saving and spending for people aged between 18 and 25 on the MoneySmart website: http://moneysmart.gov.au/life-events-and-you/under-25s TRANSCRIPT: My sister Nicki recently bought a 2009 manual Lancer.After working out her costs for petrol, registration and a regular service, she had less than three hundred fifty dollars to spend per year on car insurance.She rang around all the insurance companies and got quotes but found out the comprehensive insurance was way more than she could afford. Nicki knew comprehensive insurance covered damage to her car and other people's cars and property. But the best quote she could get was nine hundred and fifty dollars a year because she was under twenty five. So anyway she's decided to take only compulsory third-party insurance instead, which only covers personal injuries not damage to property or other cars. On her way home one day she stopped at a red light. When the signal went green, she accelerated and stalled the car. The p-plate driver behind her didn't see my sister stall in front, she crashed right into my sister's car causing about five grand worth of damage. Well, Nicki didn't have comprehensive insurance and the p-plate driver only had compulsory third party. My sister's car is a right off and she can't afford to fix it either. She told me later that it would of been better to get it quote for car insurance before she committed to buying the car so she would have known how much she could afford to spend. Nicki learnt that their are on-going costs when buying a car and if she had worked out a budget for buying and bought a cheaper one I don't think she would be in this position. SOCIAL MEDIA: Facebook:https://facebook.com/MoneySmartAu Twitter:https://twitter.com/moneysmartteam