Car insurance can be expensive for new drivers, especially young people, so what are the cheapest cars for new drivers and why?

New drivers are statistically more likely to be involved in accidents, with stats saying 20% have an incident within their first year on the road. This is not due to recklessness or age, but rather inexperience. As a result, insurance companies view new and young drivers as high-risk clients.

One of the best ways to keep insurance costs down is picking a suitable vehicle in a low insurance group. To explain, Liz Hunter, commercial director at MoneyExpert has put together her advice for young drivers on the best first car they should consider that will help to keep insurance costs to a minimum once they pass their test. 

What are car insurance groups? 

For new drivers, choosing a car in the lowest insurance group can make all the difference in keeping costs down. Insurance groups are used by insurance providers as a guideline to work out the cost of premiums offered to customers. 

Insurance groups range from one to 50, with cars in group one being the cheapest to insure and those in group 50 being the most expensive.

The cost of insuring a car is determined by which group it falls into. For example, a modest hatchback with a small engine is likely to fall within groups one to 11, and is relatively cheap to insure.

In contrast, a high powered saloon from a premium brand could fall within groups 35 and above, making it significantly more expensive to insure.

(Image: Money Expert)

*prices correct as of February 2025 - Source: Money Expert

What else increases insurance premiums?

Car insurance premiums are influenced by a variety of factors, including your:

  • driving history
  • location
  • age
  • gender
  • occupation 
  • intended car usage
  • the specific make and model of the vehicle

So while a car in a lower insurance group can help reduce costs, it doesn't guarantee the cheapest rate. 

 

How much does insurance cost for young drivers? 

MoneyExpert conducted research on how much insurance would cost a new driver, looking at a range of popular models that make ideal first cars to find the top 10 cheapest cars for new drivers to insure. 

(Image: Money Expert)

*prices correct as of February 2025 - Source: MoneyExpert

Analysing the results of the research, Liz Hunter says: “The results of the test found that the Ford KA was the cheapest car to insure for a young driver and around £60 cheaper than the next vehicle in the list.

"The KA has always been a popular model in the UK, therefore there’s plenty of choice on the used market and can be bought for as little as £1000. Along with low running costs and strong safety records, the Ford KA makes a great proposition for young drivers and parents looking to purchase a vehicle for their child.

“Models such as the Volkswagen Polo, Vauxhall Corsa and the Ford Fiesta are also very popular, regularly seen on the lists for the top 10 best selling cars in the UK. Whilst they do make ideal first cars for new drivers, their insurance costs are significantly higher."

But, even with a black box fitted, a Ford Fiesta costs over £400 more annually to insure compared with the smaller Ford KA.

"It’s worth remembering that whilst all these cars on the list are of similar size and performance, the cost of insurance can differ significantly by as much as £500, so it pays to do your research before you purchase your vehicle as a younger driver,” adds Liz. 

How else can young drivers get cheaper car insurance?

There are other factors that young drivers should consider when looking for a good deal on their car insurance too, Liz explains. 

Black Box insurance 

A black box uses telematics to gauge how you use your car, looking at the speed, acceleration and the time and day you drive it. It’s a good option for new drivers as it helps reduce insurance costs significantly whilst promoting careful driving. Some policies even reward your careful driving by lowering your monthly premiums. If the black box notices you speeding, it can also increase your premiums, so due care and attention are required if you opt for this type of insurance. 

Consider further driving training 

Passing an advanced driving course will demonstrate to insurers that you are a responsible driver who has taken the time to hone their skills. If you don't have much of a driving history, an advanced driving course is a good way to quickly mitigate the perceived risk of inexperience.

The UK government offers a Pass Plus scheme to help drivers improve their motoring skills. Anyone can take a Pass Plus course at any time, but it's particularly helpful for young drivers who have just passed their driving test. Many insurers offer cheaper car insurance for people with a Pass Plus certification.

Pay upfront rather than monthly 

If you’re in the position to pay for your car insurance upfront on an annual basis, this is the best option to help you save money. Opting for a monthly payment plan can add up to 25% more onto the total amount you pay for your premium, making it the more expensive option overall.

If you’re unable to pay upfront, you could also consider signing up for a 0% credit card and make smaller monthly payments until it’s paid off instead. to avoid the additional charges from your insurance providers.

Shop around and compare policies

To find the most affordable car insurance, it's essential to do your research and utilise a comparison site. These sites offer search tools that allow you to evaluate various options, including black box telematics, third-party, and fully comprehensive insurance. Additionally, you can consider factors such as the excess amount, add-ons like breakdown cover, and other elements that can affect the overall cost of your premium.