Buying a vehicle
The cheapest cars to insure for young drivers
How to find the best young driver insurance
Graham Cutbill-White
Last updated: 23/10/2025
Graham Cutbill-White
Last updated: 23/10/2025
Less experienced motorists will often be hit with more expensive policies. In fact, for many new drivers – especially those aged under 25 – the cost of an annual insurance policy can be more than the vehicle itself.
The type of car you drive plays an important role in the price of your car insurance. If you’re looking for an affordable solution to getting on the road, Tempcover’s guide will not only help you identify the cheapest cars currently around for young drivers, but present the factors you should consider when it comes to looking for insurance.
Honest John has highlighted the cheapest cars for young drivers to insure. You’ll probably recognise them all and could consider adding them to your shopping list when it comes to buying a first car…
Described by Fiat as “compact, efficient and reliable”, the Fiat Panda has 1.0 GSE 70HP Mild Hybrid engine with low emissions It could be a perfect first car with plenty of space for passengers and belongings.
A small and economic car with responsive and smooth controls, the Toyota Aygo X is perfect for city driving. Its compact size and 1.0 engine makes it an affordable car to run and insure.
With advanced safety features fitted as standard, the new Kia Picanto has an efficient 1.0 litre petrol engine, offering lower CO2 emissions.
The 1.0 Litre Mpi petrol engine Hyundai i10 is a compact city car that automatically switches off the engine when the car comes to a halt, lowering both fuel consumption and CO2 emissions.
With its 1.0 MPI petrol engine, the Skoda Fabia is spacious, comfortable and fully connected – with front assist and rear parking sensors fitted as standard.
The HonestJohn article also features a number of other cheap cars for young drivers to insure:
The cost of insurance for young drivers can be quite expensive, so it helps to know the factors that may affect it. In many cases, the price you pay will be based on factors like your age, driving experience, the vehicle model and even your postcode. One of the most important factor is the vehicle’s insurance group.
While logic dictates it would be cheaper to insure a Fiat than a Ferrari, understanding how car insurance groups work can be a lot more complex. To help with this, we’re going to talk through the process…
Every car available in the UK belongs to one of 50 car insurance groups set by the Group Rating Panel. This panel is comprised from members of the Association of British Insurers (ABI) and Lloyds Market Association (LMA) and they determine which insurance group new vehicles should be placed in.
Typically, the lower a car’s insurance group (1-50) the cheaper it will be to insure – meaning cars in Group 1 are more likely to be the cheapest to insure. As such, younger drivers should be looking for cars with a Group 1 rating if they want to get the best insurance prices.
The Group Rating System relies on an internationally recognised insurance standard of 15 km/h crash impact. Research engineers then determine the cost of times and parts to return the vehicle to its pre-accident condition. Based on the outcome, the results are accepted by the industry as a standard for vehicle repair.
When deciding what insurance group a car belongs to, the panel considers the following factors:
As a young driver in the UK, you’re statistically more likely to be involved in an accident and make a claim. As such, this can result in your car insurance being higher than what would be expected of a more experienced driver. The same can be said of student drivers, too, as they are generally younger.
Getting the best cheap car insurance for young drivers may not be the easiest thing to do, but there are plenty of ways to help keep the costs down. It’s not so much a secret, but if you take care of the basics like picking the right car to adding extra security features can make things easier.
When it comes to looking for your first car, how much you pay for car insurance is a huge factor in the buying process. As we mentioned above, all cars in the UK belong to one of 50 car insurance groups – with the cheapest cars to insure being in Group 1. Cars such as the Ford Ka+, Kia Rio, and the Nissan Micra all fall into this group.
Having a black box policy (also known as telematics) is another option to consider when looking to lower your insurance. The way this works is by having an app or small device installed in the car to monitor driving usage and behaviour. In theory, this device helps young drivers become more cautious when they’re behind the wheel.
Adding a black box ranks high on the list if you’re serious about lowering insurance. If you’re a young driver (under the age of 25), you may be able to seriously lower your premiums with one of these devices installed.
Instead of being a named driver on your parents’ car, you could do the opposite and have one of them added as a named driver on your policy.
If a new driver adds an older, more experienced driver to their policy the price could potentially come down. The reason being is that the insurance provider will consider the vehicle to be used by them from time to time.
If you do this, you need to ensure the person who drives the car the most is the main driver. If the opposite happens, you will be fronting – a motoring offence that carries potential penalties of policy cancellation, claims being voided and you ending with a criminal record.
When getting a quote for car insurance, you will be required to pay a certain level of excess – this is the voluntary amount you are happy to pay towards repairs should a claim be made. If you set your excess at a higher level, this will lower the insurance policy on your vehicle.
However, it is advised that you take precaution and can be certain you can afford to pay out in the event of an accident.
You can find out more about understanding car insurance excess in Tempcover’s guide.
Adding mods to your car – such as alloy wheels and body kits – may give your car a ‘cooler’ appearance, but adding personal modifications are known to increase insurance premiums drastically. These changes are often associated with drivers looking to drive at higher speeds, and therefore are deemed as higher risks.
If you are still not put off from adding modifications to your car, then you should at least consider replacing the parts with cheaper ones. Adding expensive body parts will result in your premiums being higher. Also note that you have to declare any modifications to your insurer.
Whichever car you choose to drive, find out how you can save more with a temporary car insurance policy from Tempcover. While temporary car insurance and annual cover may differ, you still get the same level of comprehensive insurance with the added benefit of finding a flexible and affordable option that works for you.
The Fiat 500, popular among new UK drivers, is generally cost-effective due to its low insurance group rating and compact engines. However, the actual cost can fluctuate based on factors such as the specific model, your age, driving experience, occupation, and location. Therefore, while the Fiat 500 is a practical choice, it's crucial to obtain personalised quotes for an accurate insurance premium.
Group 1 insurance cars are an economical choice for young drivers due to their low insurance, purchase, and repair costs. Their less powerful engines also make them safer. However, they're typically small hatchbacks, so larger families may need to consider a bigger vehicle.
Reducing young driver insurance costs is achievable. Compare policies regularly and consider a black box policy that monitors driving behaviour for lower premiums. Adding a responsible second driver may also help. Remember, third-party cover isn't always cheapest and buying policies weeks before renewal can be cost-effective. Don't hesitate to negotiate with your existing insurer. Following these steps can lead to more affordable insurance for young drivers.
Your car's insurance group is determined by the cost of parts, potential repair expenses, and car performance. Insurers use historical claims data to estimate repair costs post-accident, categorising your vehicle into an insurance group. This influences your premium. A cheaper-to-repair, lower-performance car may fall into a lower insurance group, potentially reducing your insurance costs.
While a lower car insurance group means a cheaper insurance premium, it's merely one factor in determining your final insurance premium for your car. Insurers also consider things like: Your age – Young drivers are more likely to crash due to inexperience.
Newer cars aren't always in higher insurance groups. Insurance brackets consider factors such as car value, performance, safety features, and repair costs. Therefore, a new car may not necessarily fall into a high insurance group. It's advisable to check the car's insurance group prior to purchase to estimate potential insurance costs.
UK car insurance is expensive for under-25 drivers due to their statistically higher accident rate, a trend observed for over 20 years. Despite many young drivers using older, cheaper vehicles, the risk of collisions with high-value cars is significant. This risk of expensive repairs greatly influences the high insurance premiums for this age group.
To obtain affordable car insurance as a new driver, don't automatically renew; instead, compare policies. Consider a car from a lower insurance group for reduced premiums. Additionally, build your No Claims Discount by driving responsibly to avoid claims. These strategies can significantly lower your insurance costs as a new driver.
First-time drivers often find the most affordable insurance cover in cars within groups 1-10. These vehicles, equipped with numerous safety features and less costly to repair, offer a cost-effective insurance solution without compromising on safety or quality.
A black box or telematics device can potentially reduce your car insurance costs, especially for safe and new drivers. It monitors driving habits, with careful driving possibly leading to premium discounts. The data helps insurers assess risk accurately, rewarding smooth braking, steady speed, and safe cornering with lower premiums. However, reckless driving may increase costs. It's a useful tool for safe drivers aiming to cut insurance expenses.
To get affordable car insurance as a young driver, increase your voluntary excess, you could opt for black box car insurance, and add an experienced named driver who shares the driving. Choose a less powerful, cheaper car and ensure it has strong security features. These steps can help secure a lower premium.
Your car's mileage significantly influences your insurance costs; the more you drive, the higher the risk of accidents, raising premiums. However, low-mileage drivers may enjoy lower rates or discounts. It's crucial to provide accurate mileage to insurers to avoid policy invalidation. Consider reducing driving by working from home or carpooling, and inquire about low-mileage policies if you seldom use your car.
Modifying your car can pose safety risks, potentially compromising the vehicle's structure and safety features. It may also lead to legal issues if modifications breach local laws, like emissions standards or noise levels. Importantly, alterations can affect your car insurance, possibly increasing premiums or voiding your cover. Therefore, consider these potential implications before deciding to modify your vehicle.
Factory-fitted options, security devices, and cosmetic changes typically don't raise car insurance, but must be reported to your insurer to avoid voiding your policy. It's crucial to communicate any changes, from practical installations like tow bars to aesthetic additions like custom seat covers. However, performance-enhancing modifications usually result in higher insurance costs. Always remember, your insurer determines what is insurable.
Can a 17 year old get temporary car insurance?
Most temporary car insurance providers mandate a minimum age of 18, though some, like Tempcover, may cover 17-year-olds. If you're a learner, consider a learner driver policy. This alternative can offer coverage for up to a year, making it a viable option.
Related tags:
Temporary Car Insurance