Buying your first car is an exciting milestone, but the reality of car insurance can quickly bring you back to earth. As a young driver, premiums can be incredibly high. The good news? Choosing the right car can make a huge difference. This guide will walk you through the key factors that affect insurance costs and reveal the best cars that won’t break the bank.
How Car Insurance Premiums Are Calculated for Young Drivers
Before we get to the cars, it’s crucial to understand what insurance companies are looking at. Your age and lack of driving history are big factors, but so is the vehicle you choose. Insurers assess risk based on several key characteristics:
- Insurance Group: All cars are sorted into insurance groups from 1 to 50. Group 1 is the cheapest to insure, and Group 50 is the most expensive.
- Engine Size and Performance: Cars with smaller, less powerful engines are generally cheaper to insure because they are seen as lower risk.
- Safety and Security Features: Modern safety tech like Automatic Emergency Braking (AEB) and a strong Euro NCAP safety rating can lower your premium. Features like an immobiliser or an alarm can also help.
- Cost of Repair: Insurers calculate the cost and availability of parts. If a car is expensive to fix, your premium will be higher.
Your goal is to find a car that ticks all the right boxes: small engine, low insurance group, and a solid safety record.
Top Picks: The Best Cars for Young Drivers with Low Insurance
These cars consistently rank among the most affordable for new and young drivers, offering a smart blend of practicality, style, and low running costs.
1. Hyundai i10
The Hyundai i10 is a city car superstar. It’s affordable to buy, incredibly economical to run, and most models fall into the lowest insurance groups. It also comes with a generous warranty, which can save you from unexpected repair costs down the line.
- Why it’s a winner: Low insurance group, excellent warranty, and surprising interior space for its size.
2. Volkswagen Polo
Often considered a step up from a basic city car, the Polo offers a premium feel without the premium insurance costs. Entry-level models with the 1.0-litre engine are a fantastic choice, providing a comfortable ride, great build quality, and a safe, reliable drive.
- Why it’s a winner: Strong safety ratings, refined interior, and fantastic fuel efficiency.
3. Skoda Fabia
A perennial favourite among new drivers, the Skoda Fabia shares much of its technology with the Volkswagen Polo but often comes at a lower price point. It’s spacious, practical, and highly reliable, with models with smaller engines landing in very low insurance groups.
- Why it’s a winner: Unbeatable value, spacious interior, and known for reliability.
4. Kia Picanto
The Kia Picanto is a stylish and compact city car that’s easy to park and cheap to run. With a seven-year warranty, it offers peace of mind and excellent long-term value, making it a brilliant choice for those who want a new-looking car without the high costs.
- Why it’s a winner: Long warranty, fun to drive, and a youthful design.
5. Fiat 500
If style is a top priority, the Fiat 500 is your best friend. This iconic car is cheap to insure, easy to handle, and has a personality all its own. While it’s not the most practical for carrying passengers or luggage, it’s a brilliant choice for city driving and is a favourite for a reason.
- Why it’s a winner: Iconic design, low running costs, and very easy to manoeuvre.
Smart Tips to Lower Your Premiums Even Further
Choosing the right car is the first step, but here are some other actionable tips that can help you save even more money on your policy.
- Consider a Black Box Policy: A telematics policy (or black box) tracks your driving habits. By demonstrating that you are a safe and careful driver, you can earn significant discounts on your premium.
- Add a More Experienced Driver: Listing a parent or guardian as a named driver on your policy can lower the overall risk in the eyes of an insurer. Note: Be honest! Fronting (listing them as the main driver when you are) is illegal and could invalidate your insurance.
- Take an Advanced Driving Course: Courses like Pass Plus can earn you a discount with some insurers, as they prove you have a higher level of driving skill.
- Build Your No-Claims Bonus: Even one year of claim-free driving can lower your next renewal quote. Drive safely and avoid making small claims to build this up quickly.
- Pay Annually: While it’s a large upfront cost, paying for your insurance in one lump sum is almost always cheaper than paying monthly.
The Takeaway
Finding a car with low insurance for young drivers doesn’t have to be a guessing game. By focusing on models with small engines, low insurance groups, and strong safety features, you can get a great car that is also affordable to insure. Combine this with smart decisions like a black box policy, and you’ll be on the road to building a good driving record and saving money for years to come.
For more advice on everything from buying your first car to understanding your car’s tax bracket, check out our other guides.
