60-second summary
In a nutshell, car insurance for young drivers can be prohibitively expensive. But your choice of car could make a big difference. Here’s a few key pointers to help you find a cheaper quote:
Cars are categorised into ‘insurance groups’ based on their risk to insure.
Choosing a car in a lower insurance group could mean a cheaper car insurance quote.
Cars in low insurance groups tend to have smaller engines, lower repair costs and good safety and security features.
They also tend to have cheaper price tags and, because of their smaller engines, cheaper running costs.
Buying a new car should mean you’re covered for any new faults and won’t have to worry about the car’s maintenance history.
But buying a used car could open you to a wider range of choice on a limited budget. Either way, it pays to do your research.
What to look for in your first car
The best cars for first-time drivers should be cheap to run and as cheap as possible to insure.
Many new drivers get insured to use their parents’ car – at least to start with – while saving for the independence of their own vehicle.
Of course, there’s no point in splashing out on the car of your dreams if you can’t afford to run it. But that doesn’t mean it can’t be fun to drive though.
In general, the best cars for young drivers should be:
Cheap to run – check out the miles per gallon (MPG) – the lower, the better
Easy to drive – this will help build your confidence
Simple to park – look out for park-assist features
Safe – go for cars with a high Euro NCAP safety rating score.
As well as looking at car models that could be good insurance options for younger drivers, it’s worth thinking about car insurance groups, and weighing up the pros and cons of buying new vs used.
Check out the car insurance group
Car insurance can be responsible for a big chunk of overall car running costs and put a major dent in your finances, especially if you’re a younger driver. So, boring as it is, this should be one of the key things to consider when buying your first car.
When shortlisting your choice of cars, check which car insurance group they’re in. All cars are put into insurance groups, making it easier for providers to calculate the cost of premiums based on the risk of a claim being made.
Car insurance groups range from 1 to 50. As a rule, the higher the group, the more expensive your car insurance will be. To help keep the cost of your insurance down, you’ll want to look for a car in the lower groups, say 1-5. A car’s insurance group is based on factors including:
New car value
Performance – engine size, 0-60 acceleration time and top speed
Price of parts
Repair costs and how long it would take to repair
Safety – Euro NCAP safety rating and automatic emergency braking (AEB) features
Security features like manufacturer-fitted alarms and immobilisers.
If you choose an expensive model with a powerful engine and costly replacement parts, it will most likely be in a higher insurance group.
Just be warned, not all models in the same range – for example, the Ford Fiesta range – will necessarily all fall into the same insurance group. Different trims, engine sizes and safety features can put them in different groups. So, check carefully before you opt for a particular model that it’s in one of the lower groups.
New or used?
Not many first-time drivers can afford a brand-new car straight out of the showroom. But you may find there’s an affordable choice out there, especially smaller, compact city cars and superminis – ideal first cars for teenagers.
On the other hand, buying a used car is a popular choice for new drivers, as it can mean more choice on a limited budget. Here’s a breakdown of some of the pros and cons of going new vs used for your first set of wheels.
Advantages of buying a new car include:
Manufacturer’s warranty – you’re covered for any faults that may crop up in the first few years
You can choose the colour, trim and any optional extras you want to add
Finance options could allow you to spread out the cost of your new car over time
Latest technology and gadgets – for example, USB ports and Android Auto
No previous owners and maintenance history to worry about
You won’t have to take your car for an MOT for the first three years after the car is registered.
Advantages of buying a used car include:
Usually cheaper to buy outright
You're unlikely to be hit with as much depreciation – new cars can lose up to 60% of their value in the first three years
No waiting period – as soon as the payment and paperwork are done, you can drive the car away
There’ll be plenty of choice, even on a low budget
Online sites, buying guides and car valuation tools make it easier than ever to do your research.
If you do decide buying a used car is the best option for you, it’s important to do the right checks to make sure you’re getting a car that has been well-maintained. Read our checklist for buying a used car.
Best first cars for young drivers
Based on the insurance group and how it’s linked to cheaper car insurance, this is our pick of the best cars for 17-24-year-olds:
1. Volkswagen Up!
For a value-for-money city car, you can’t go wrong with the Up! Volkswagen’s compact vehicle is surprisingly spacious inside and features a smart-looking interior. It’s comfortable to drive, easy to manoeuvre and has good fuel economy too. Some models even include a detachable infotainment system.
Lowest insurance group: 1
Used price range: approx. £3,250-£14,000
2. Citroën C1
Citroën is a big name in the world of small cars. The characterful C1 comes in three- and five-door options, with the choice of a penny-pinching 1 litre engine, too. But it’s the range of trims available and the emphasis on safety that make all the difference.
Lowest insurance group: 1
Used price range: approx. £2,000-£9,000
3. Seat Mii
Fun and yet frugal, the stylish Mii makes a great urban runaround. It’s comfortable for its size and easy to manoeuvre. Although tiny, it has been cleverly designed to maximise the space inside.
Lowest insurance group: 1
Used price range: approx. £3,000-£9,000
4. Hyundai i10
Well-equipped and practical, the Hyundai i10 offers good value for a small car. It’s remarkably spacious for a car of its size, with a good-sized backseat and boot. The cost and economy of the i10 can vary depending on the trim and engine size you choose, with the latest models boasting a decent amount of tech too.
Lowest insurance group: 1
Used price range: approx. £2,000-£18,000
5. Fiat Panda
Practical and versatile, the Fiat Panda is a small car that’s capable of taking you beyond the city. As well as being good value, it’s also fun to drive and features the charmingly quirky looks you’d expect from the Italian carmaker. Plus there are models to suit every taste, from more economical versions right up to 4x4s.
Lowest insurance group: 1
Used price range: approx. £1,000-£12,000
6. Ford Ka and Ka+
Originally launched in 1996, the Ford Ka has been a staple on UK roads for over a quarter of a century. The Ka+ was launched in 2016 as a five-door version of the well-known city car. Production may have only lasted four years but there’s still plenty to like about the Ka+, from its roomy interior to its comfortable ride.
Lowest insurance group: 1
Used price range: approx. £1,000-£11,000
7. Skoda Fabia
When it comes to value for money, the Skoda Fabia is a good option. It’s achieved long-standing popularity as a reliable, spacious and practical city car. The third generation of the Fabia, released in 2014, features more modern styling and an easy-to-use touchscreen infotainment system.
Lowest insurance group: 1
Used price range: approx. £2,000-£20,000
8. Kia Picanto
If you’re tempted by the reliable Picanto, keep an eye out for models built from 2011 onwards. The Korean manufacturers turned on the style for the second-generation city car and the good looks remain with new models too. A well-built, affordable and cheap-to-run first car.
Lowest insurance group: 2
Used price range: approx. £2,000-£16,000
9. Toyota Aygo
Pronounced ‘I go’, Toyota’s supermini does exactly what it says on the tin, with a reliable engine that ensures it will run for years to come. Offering funky looks and wallet-friendly running costs, the Aygo also handles well and has a tiny turning circle that makes parking a breeze.
Lowest insurance group: 2
Used price range: approx. £2,000-£18,000
10. Peugeot 107
You won’t have to look far for an affordable 107. The pint-sized supermini has been a big seller for many years and features heavily in used car listings. Offering cute looks and good fuel economy, it could be a good choice for your first car.
Lowest insurance group: 3
Used price range: approx. £1,000-£6,000
More tips for getting cheaper car insurance
The right vehicle choice could help bring the cost of your car insurance down. But there are a few other things that could help keep car insurance premium costs down too, such as:
Adding an experienced named driver to your policy.
Driving safely – avoid penalty points and speeding fines, which will cause your premium to go up. A Pass Plus driving qualification might also help.
Considering black box or telematics insurance, which can reward you for driving carefully.
Paying annually if you can afford it. This means you’ll avoid paying interest charges on top of your premium.
Opting for a higher voluntary excess – but make sure you can afford your share if you have to make a claim.
Shopping around so you can see how prices and policies compare.
Compare car insurance for young drivers
The good news is that the average cost of car insurance for young drivers has fallen by around £600 in the last year[1]. But with the majority of young drivers getting a quote of £1,340[2], that’s still not cheap.
Another way you could save money is to shop around and compare car insurance quotes for young drivers. Comparing quotes with us could save the majority of our customers up to £485[3] on their car insurance premium.
Compare car insurance quotes with us and see if you could find a cheaper deal.
[1]51% of young drivers between 17-24 years old could achieve a quote of up to £2115.69 for their car insurance based on Compare the Market data in March 2024.
[2]51% of young drivers between 17-24 years old could achieve a quote of up to £1339.58 for their car insurance based on Compare the Market data in June 2026.
[3]Based on Online independent research by Consumer Intelligence during June 2026, 51% of customers could achieve this saving on their car insurance through Compare the Market.
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With more than eight years’ experience in writing and sub-editing content, Karen started her career in fashion before making the move to insurance. She now specialises in producing clear, engaging content that helps people make better financial decisions.
Karen’s areas of expertise include insurance products, such as car insurance, travel insurance and life insurance, as well as utilities such as energy comparison.
Stephen Maunder is an experienced personal finance editor, having spent more than a decade working for consumer print and online titles. He won several industry awards for his personal finance features at Which?, before becoming Deputy Editor at Compare the Market.
Amy helps make sure you get the best value when choosing insurance. Thanks to more than four years’ experience at Compare the Market, she understands what people look for, working closely with insurance providers to offer you deals and services that are fair, easy to understand and right for your needs.
Our content is written by a Compare the Market expert, backed by data and enhanced by technology. Find out how we ensure accuracy and quality in our Editorial Guidelines.
