For drivers aged 17 to 24, after the initial purchase cost, the most expensive aspect of motoring is insurance. This is because age - or lack of - is a big determining factor in how insurers calculate their car insurance premiums; younger drivers are simply more likely to have an accident.
How to cut the cost of car insurance?
One of the best ways to minimise your car insurance premium is to buy a smaller car. Better yet, choose a second hand small car.
Sign up for black box insurance and fit a Thatcham-approved alarm, and your insurance costs could come down further.
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Cheapest car to insure for a young driver?
We've put together a list of some of the cheapest cars to insure for new drivers, based on data from Admiral.
List of cheap-to-insure cars vary significantly, not least because insurers judge vehicles - and their drivers - differently.
That said, there is a lot of crossover, with certain models appearing in several lists.
Generally speaking, the cheapest cars to insure have a small engine size and tend to be lower specification models.
Car insurance groups
Insurance providers use insurance groups to help work out what premiums to charge.
There are 50 insurance groups in total, with the lowest insurance group - insurance group 1 - offering the cheapest premiums.
Cars within Insurance group 1, insurance group 2 and insurance group 3 tend to be popular with younger drivers as these are the cheapest to insure.
Here are 10 of those low insurance cars:
Skoda Citigo 1.0 MPi (59 BHP) - average annual premium: £512.18
This 59 BHP is fine for getting around town, but if you take longer trips on a regular basis, you should consider a bigger engine.
Since Skoda is owned by Volkswagen, it shares the same platform as the Seat Mii and the VW Up!.
It offers 251 litres of luggage space, expandable to 959 litres with the rear seats folded down.
The Citigo is no longer produced for the UK market, but plenty of secondhand examples are available. And because there are also so many Mii and Up! models in circulation, spare parts should be supported for some time to come.
Admiral says it will cost about £512.18 annually to insure a Citigo, with a similar figure for the Seat Mii.
Seat Mii - average annual premium: £510.15
While very similar to the slightly more upmarket VW Up! the Seat Mii is an affordable car that is a fun, practical little runabout and one of the cheapest cars to insure for new drivers under 25.
Small and nippy, it's ideal for inner-city driving.
It only comes in electric form and has a good range of 160 miles.
Long term, charging at home will prove cheaper than driving a comparable fuel-based car.
Volkswagen up! - average annual premium: £509.96
A popular car for affordability, the Up! has been on the market for a decade and is still going strong.
As mentioned, it's essentially the same as a Seat Mii and a Skoda Citigo, but has an extra touch of class compared to its siblings.
The 1.0-litre engine is nippier than comparably small engines, and there's a good deal of space for weekend getaway luggage.
Affordable to buy used, the Up! is also available in electronic form (the e-Up!), and of course it’s a dependable option if you’re seeking low cost insurance cars for young drivers.
Great news is that the VW Up! Is also an affordable option when it comes to taxing your vehicle. Some models cost just £20 a year to tax, whilst pre-April 2017 models afford no road tax charges at all!
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Volkswagen T-Cross - average annual premium: £484.89
If you’re looking for a cheap car to insure that offers more space, consider the Volkswagen T-Cross.
Even the smallest T-Cross has an ample 385 litres of space, rising to 455 litres for the roomiest model. A great option for those who carry a lot of equipment from A to B.
49.6 claimed MPG makes this an economical option, too, with 94bhp in the base-line model.
Moderate speed, good safety equipment and straightforward handling all contribute to the low average insurance premium.
Mazda CX-5 - average annual premium: £483.97
The Mazda CX-5 is another SUV that's cheap to insure, plus it boasts low running costs, easy handling and a spacious interior.
With a greater emphasis on practicality than the T-Cross (it has five seats and lots of boot space), the vehicle is available with four engines including petrol and diesel, and MPG figures ranging from 35.3 and 50.4 - depending on the model.
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SEAT Arona - average annual premium: £483.33
The Arona is another SEAT model popular with Britons, helped by an affordable price tag, modern styling, and easy handling.
It also boosts low running costs, with MPG figures ranging from 44.8-53.
Its perky 1.0-litre engine produces a decent 94bhp which, combined with cheap insurance, a choice of five engines and economical running costs, makes it a good choice for new drivers.
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Renault KADJAR - average annual premium: £476.35
Another of the best cars to consider if you are looking for cheap insurance is the Renault KADLAR.
French car giant Renault was late to the SUV party, but it made up for lost time with the KADJAR.
This pacey 138 bhp SUV delivers affordability, good handling and cheap running costs.
'Fun' is the watchword here - and that comes down to the engine's power, which is superior to most models on this list.
And it doesn’t scrimp on the comfort either, especially if you skip the larger 19-inch alloy wheels.
While it’s not perfect by any means, for the asking price it delivers superb value for money, and is a good choice for new drivers seeking a low-cost SUV for their first set of wheels.
KIA Stonic - average annual premium: £472.90
With low running costs, two engines and four trim levels, the Kia Stonic builds on the South Korean marque's reputation for affordable, reliable - and often fun - vehicles.
It could be a solid option for the first time driver seeking an SUV-like vehicle - since it straddles the zone between SUV and hatchback.
Another feather in its new-driver cap is that it’s easy to drive.
This, added to low running costs (35.3 and 50.4 mpg across engine types) and affordable insurance, makes it one to consider for your first vehicle.
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Rover MINI - average annual premium: £446.43
Based on the legendary Austin MINI, the Rover MINI delivers similar running costs but is notably quicker.
With a top speed of around 90mph (depending on year of manufacture), the Rover MINI offers ample performance - plus it’s easy to park due to its diminutive size.
Hard to distinguish from older versions of the MINI, the Rover variant delivers plenty of street cred - and of course it is among the cheapest cars to insure for new drivers under 25.
Austin MINI - average annual premium: £344.20
Offering the cheapest insurance premiums of all vehicles on our list is the Austin Mini.
Built for over four decades (1959-2000) you might imagine Austin MINIs were ten-a-penny - but they’re actually considered a collectors item.
Aside from its chic retro looks, there are many other reasons to own one: namely low running costs and easy handling.
You’re looking at a very decent 40mpg, although the top speed is a parlty 75mph and it will take you well over 30 seconds to get there!
Not an ideal car for regular motorway trips, the Austin MINI is nevertheless a great urban runabout as a first car.
This head-turner is also, of course, among the low insurance group cars for young drivers.
Cheapest cars to insure for new drivers over 25
Insurers view those aged over 25 as less likely to be involved in a collision - which is backed up by the statistics.
Average claim amounts are also higher - being £3,667 for 18-20 year olds, falling to £2,905 for 21-25 year olds.
Indeed, Experian estimates that premiums fall by about 12.5% from ages 24 to 25. However, the savings could be considerably more in some cases.
According to data from insurer Admiral, five of the cheapest cars to insure for new drivers over 25 are:
- MINI Austin - average annual premium: £151.68
- MG B - average annual premium: £168.99
- Land Rover 88 - average annual premium: £179.08
- MINI Rover - average annual premium: £197.32
- TVR Chimaera - average annual premium: £224.56
More insurance saving tips for young drivers:
- Choose a cheaper car
- Choose a car insurance policy with telematics or “black box insurance”
- Add an experienced driver with a clean record to your policy
- Ensure your car is safe and secure, ideally with an alarm approved by Thatcham (The motor insurers’ automotive research centre)
- Whether looking to buy a second-hand car or a brand new car, it is worth first off it’s worth checking which checking which insurance group it falls into so you have an idea how much it may cost you to insure
- If you can afford to, paying your insurance annually rather than monthly usually works out cheaper
- Don’t presume older models are always cheaper to insure: Newer vehicles have better security and technology, making them safer to drive and harder to steal, so can be cheaper to insure than an older version of the same model of car.
Sources: Admiral, Experian
