For a new driver in Britain, the car itself is often the smaller part of the bill. Insurance for a young or newly qualified driver can cost more than the car is worth, so the single most important decision you make is not which model looks best, but which one keeps your premium down. Get that right and you can run a first car for sensible money. Get it wrong and the insurance alone will price you off the road.

The good news is that the cars that are cheap to insure are also, largely, the cars that are cheap to buy, cheap to fix and easy to live with. This guide explains what actually drives an insurance quote, which kinds of car to shortlist, and how to check a used one properly so your first car is a bargain rather than a money pit.

What makes a first car cheap to insure

Insurers group every car into one of 50 insurance groups, from group 1 (cheapest) to group 50 (most expensive). As a new driver, you want to be shopping at the bottom of that scale. The factors that matter most are:

Engine size and power. A small, modest engine sits in a low insurance group. A hot hatch or anything turbocharged and quick will be punished hard for a young driver. Stick to the smallest sensible petrol engine.
Value and repair cost. Cheaper cars with cheap, plentiful parts cost less to insure because they cost less to repair or replace.
Modifications. Anything non-standard, alloys, exhausts, tints, lowered suspension, pushes the premium up and must be declared. A standard, unmodified car is cheaper.
Security. An immobiliser and being able to park off-road overnight both help.
The driver. A telematics or “black box” policy, adding an older named driver honestly, and building a no-claims history all reduce cost far more than swapping models. Never lie on a quote (“fronting” is fraud and voids the policy).

The headline rule is simple: small engine, low group, standard spec, cheap parts.

Cars worth shortlisting

You do not need me to name every model, because the pattern matters more than the badge. Aim for small, popular petrol hatchbacks in the lower insurance groups. These are the cars every learner’s family has owned, every garage can fix and every insurer prices sensibly.

Small superminis with modest petrol engines are the classic first car. The Vauxhall Corsa is one of the most obvious choices, common, cheap and easy to insure in its lower-powered forms. We cover what to look for in buying a used Vauxhall Corsa.
Small, reliable runabouts such as a Hyundai i10 or a Toyota Aygo-class city car are cheap to buy and famously dependable. Around £3,000 buys an older but sound example of this sort of car.
A slightly bigger hatch like a Ford Focus works if you want more space, provided you pick the smaller petrol engine rather than a diesel or a hot version. See buying a used Ford Focus.

Whatever you pick, choose the lowest-powered petrol version and the plainest trim. A basic car in group 2 will cost a new driver a fraction of what a sportier version of the same model does.

Petrol, not diesel, and think twice about electric

For a first car, petrol is almost always the right answer. Diesels only make financial sense over big motorway mileages, and a diesel used for short town trips can clog its emissions kit and land you with expensive repairs, exactly the wrong risk for a tight budget.

Electric cars are cheap to run and increasingly common used, but a used EV needs a different set of checks (battery health above all) and the up-front price can be higher. If you are tempted, read buying a used electric car in the UK first.

Do not forget the running costs

Insurance is the big one, but the whole point of a first car is that the total cost stays low. Budget for road tax, the MOT (maximum £54.85, first due at three years old then annually), servicing, tyres and fuel. A small petrol car keeps all of these down. We break the numbers down in running costs of a used car: tax, MOT and insurance.

Check the used car properly, whatever you buy

A cheap first car is only a bargain if it is sound. Because these small, popular cars are so common, they are also prime targets for clocking and other scams, and many have led hard lives as previous first cars. Before you buy:

Run the free GOV.UK checks on the registration: MOT history (with mileage at every test), tax and the DVLA vehicle enquiry to confirm the details match.
Check the paperwork, including the V5C logbook and service history, as covered in the V5C logbook and paperwork guide.
Give it a proper test drive, following our test drive checklist.

Work through the full routine in how to check a used car in the UK so your first car does not become an expensive lesson.

Bring it all together with MotoPPI

A first-time buyer on a budget has the most to lose from a bad car and the least experience spotting one. MotoPPI levels that up: it checks vehicle history across more than 20 databases, gives you a model-specific inspection checklist, estimates repair costs and hands you the arguments to negotiate the price down. Your first check is free, and it is on the App Store now.

Download MotoPPI on the App Store and check your first car for free.

Frequently asked questions

What is the cheapest type of car to insure for a new driver?

A small, popular petrol supermini with a modest engine in a low insurance group, kept completely standard. Engine size, repair cost and modifications drive the quote far more than the badge. Aim for the bottom of the 1 to 50 insurance-group scale.

Is a black box policy worth it for a first car?

For most new drivers, yes. A telematics or “black box” policy rewards careful, sensible driving with lower premiums and can cut the cost of that expensive first year significantly. Just be aware of any night-time or mileage restrictions.

Should a first car be petrol or diesel?

Petrol. Diesels only pay off over high motorway mileage, and a diesel used for short trips can develop costly emissions-system faults. For town and mixed driving on a budget, a small petrol car is simpler and cheaper.

How much should I spend on a first car?

Around £3,000 buys an older but reliable small car, which is plenty for a first car when insurance is the bigger cost. Spend less on the car and more attention on checking it is sound, and keep money back for tax, insurance and the MOT.

Best First Car in the UK: Cheap to Insure and Run