The cost of car insurance – MoneySmart Rookie


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.

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