For most new drivers, the cost of insurance is the biggest barrier to getting on the road. A newly passed driver in their late teens or early twenties will typically face some of the highest premiums in the country, regardless of how carefully they drive. Choosing the right car is one of the most effective ways to bring those costs down.
In the UK, every car is assigned an insurance group rating that helps insurers assess the level of risk and likely repair costs associated with it. Cars registered before 1 August 2024 sit within the traditional 1 to 50 scale, with lower numbers indicating cheaper insurance. Cars registered from that date are assessed under a newer Vehicle Risk Rating (VRR) framework, though the underlying principle remains the same.
As a general guide, new drivers should consider smaller hatchbacks with engines of 1.0 to 1.2 litres, in standard or entry-level specifications. Sporty trim levels, turbocharged variants and performance-focused models tend to sit in noticeably higher groups and can add significantly to the cost of cover.
The six cars below represent some of the most practical and insurance-friendly options available in 2026. Most are well suited to the used market, where prices are lower and choice is wide.
Ford Fiesta
The Fiesta is one of the most recognisable first cars in Britain. For more than four decades it consistently topped the UK new car sales charts, and although Ford ended production in July 2023, the sheer number of used examples available means finding one to suit your budget is rarely difficult. There are estimated to be more than 1.5 million Fiestas still in use on UK roads.
From an insurance perspective, the standard petrol variants with the 1.0-litre engine are worth focusing on. Lower-powered versions typically attract more affordable insurance group ratings than the ST performance trim, which is designed for a very different kind of driver. The 1.1-litre non-turbo petrol is also worth considering as a straightforward, mechanically simple alternative.
The Fiesta’s popularity means that mechanics across the country are familiar with the model and parts are currently straightforward to source. It is worth bearing in mind that, as a discontinued model, this situation may gradually change over time. As with any used car, a full service history is advisable before purchasing.
Avoid: The Fiesta ST in any guise. Its larger, turbocharged engine places it in a substantially higher insurance group and it is not suited to new drivers.
Vauxhall Corsa
The Corsa has been one of Britain’s best-selling small cars for decades and consistently appears among the most popular choices for younger and first-time drivers. There are thousands of used examples on the market spanning a wide range of ages, mileages and price points, which gives buyers plenty of room to shop around.
Entry-level petrol models with 1.0 or 1.2-litre engines typically sit in lower insurance groups, making them well suited to new drivers looking to manage their running costs. Servicing tends to be reasonably priced given the volume of Corsas on UK roads, and parts are straightforward to source.
It is worth steering clear of the sportier trim levels. Performance-focused variants carry noticeably higher insurance group ratings and are not the most practical starting point for someone new to driving. Keeping to a standard specification with a smaller petrol engine is the more cost-effective approach for the first few years.
Avoid: Sportier variants and higher-performance trim levels. These sit in higher insurance groups and carry proportionally higher premiums for younger drivers.
Volkswagen Polo
The Polo is a slightly more premium option in this class, but it is a strong choice for anyone planning to keep their first car for several years. Volkswagens tend to hold their value comparatively well, which is worth considering when the time comes to sell or part-exchange.
The current-generation Polo, produced from 2017 onwards, earned a five-star Euro NCAP safety rating when it was first assessed in 2017 and retained that rating when the updated version was tested again in 2022. For new drivers and their families, that safety record is a meaningful reassurance.
Entry-level 1.0-litre MPI (non-turbocharged) models attract some of the very lowest insurance group ratings available on any modern car, which can make a meaningful difference to annual premiums for a younger driver. The combination of strong safety credentials, good build quality and low insurance groups makes the base Polo a particularly well-rounded choice.
Avoid: The GTI. It is a genuine hot hatch and carries a substantially higher insurance penalty. Sticking to the standard Life or equivalent specification gives you everything you need without the added cost.
Kia Picanto
The Picanto makes a compelling case on almost every practical measure for a first car. All new Picantos come with Kia’s standard seven-year, 100,000-mile warranty, which is unusual in this segment and provides genuine peace of mind during the first years of ownership. A young driver who can stretch to a newer used example may benefit from warranty cover that carries well into their motoring life.
The Picanto also scores well on running costs more broadly. Lower-spec models tend to attract very low insurance group ratings, road tax is typically inexpensive, and the small engines are economical in everyday use. It is best suited to urban and suburban driving, where its compact dimensions and light controls are a practical advantage.
Good to know: The Kia seven-year/100,000-mile warranty is transferable to subsequent owners on many models. It is worth checking the terms carefully on any used purchase, as conditions may apply.
Toyota Aygo
Toyota has built a long-standing reputation for reliability and the Aygo has reflected that across two generations. The nameplate first went on sale in the UK in July 2005, meaning there is a plentiful supply of used examples at a wide range of price points. The original Aygo ran until 2022, when it was succeeded by the Aygo X, a compact crossover version of the city car concept.
The original Aygo was designed for urban use and is at its best in that environment. Tight parking spaces, stop-start traffic and shorter journeys are where it excels. The 1.0-litre petrol engine is light on fuel and overall running costs are generally low. It is less comfortable on longer motorway journeys, which is worth bearing in mind if you regularly travel further distances.
Like other Toyotas, the Aygo tends to hold its value reasonably well. That is a useful secondary consideration when comparing the total cost of ownership over a few years, rather than focusing on the purchase price alone.
Fiat 500
The Fiat 500 was relaunched in 2007 and has been a popular choice for younger drivers ever since, partly for its distinctive styling and partly because the used market offers a wide range of options at accessible price points.
When targeting a Fiat 500 with insurance costs in mind, the 1.2-litre petrol models are generally the most sensible choice, as these typically attract lower insurance group ratings. Newer examples from around 2020 onwards use a 1.0-litre mild hybrid as the standard petrol option, which can also be competitive on insurance costs. The 0.9-litre TwinAir is a turbocharged two-cylinder engine that typically sits in a notably higher insurance group than the 1.2-litre, so it is worth checking the specific group of any particular example before committing to a purchase.
As with the Fiesta, older used models with a full service history are preferable. Some earlier examples had reported issues with electrical systems and door sealant, so checking the maintenance records carefully and arranging a pre-purchase inspection are particularly worthwhile if you are looking at older second-hand stock.
Watch out for: The 0.9L TwinAir engine. Despite its smaller displacement, it is turbocharged and can sit in a significantly higher insurance group than the standard 1.2L petrol. Always check the group rating for the specific model before buying.
Stick to sensible specifications
Across all six cars above, the same principle applies: trim level and engine choice matters as much as the model itself. Performance variants, turbocharged engines and sportier specifications all carry higher insurance group ratings and, for younger drivers, that typically translates into substantially higher annual premiums.
Choosing an entry-level or mid-range specification with a smaller engine is the single most effective way to keep running costs manageable during the first years of driving. Combining that with a telematics policy, where your driving behaviour is monitored and rewarded, may reduce costs further for safe drivers. You can find out more about how telematics insurance works on the MyFirst website.
