The Best First Cars You Can Buy And Insure On A Budget

The moment is finally here. The examiner confirms you've passed your driving test, meaning you can say goodbye to your L-plates and hello to automotive freedom. Borrowing a car from your parents sucks, though, meaning you’ll be wanting your own wheels. So, what’s it going to be?

As the Car Throttle YouTube crew has demonstrated time and time again, you can pick up all manner of cars for very little in the UK used car market. The problem for the average 17-year-old with a fresh license, of course, is insurance.

To make sure each of these cars is insurable for younger drivers, we obtained quotes for a fictitious 17-year-old student living in a Cambridgeshire town. ‘Geoff Stevenson’ has a clean driving record on his fresh licence, will drive up to 8000 miles a year, and is the only person on the policy.

Be warned – insurance these days isn’t cheap. Even if you buy a relatively affordable car, you’ll probably have to pay the same again or often considerably more to insure it. Our man can comprehensively insure these cars from around £2400 to nearly £3000, with a telematics box sometimes needed to get the lowest prices – more on the pros and cons of these devices another time.

The cars are grouped into three brackets based on the lowest price you can get a decent one for, although with many of these vehicles enjoying long production runs, it’s possible to spend much more on a newer example in some cases.

Starting price from under £1000

Ford Ka (insurance from around £2400 per year)

The Ford Ka was considered the go-to first car before 2024's 17-year-olds were even born, and it remains a great choice today, not least because it’s the cheapest to insure on this list for Geoff. Supplies are still good, helped by how disarmingly simple these things are - there’s precious little to go wrong and kill them off, save for rust.

The Ka’s trademark giant grey bumpers (some were body-coloured) look distinctive and ensure any manoeuvring fails shouldn’t leave your new pride and joy with painful battle scars.

The 69bhp offered up by Ford’s 1.3-litre inline-four may not sound like much, but as we found out racing one of these in the EnduroKa series, they’re great fun to drive. The existence of EnduroKa does mean these are probably going to get hard to find, though. 

Fiat Panda (ins. around £2600)

You can’t hate on the Panda - it’s an adorable little workhorse that’ll take everything you throw at it. Those box-like dimensions mean the already spacious 200-litre boot grows to a massive 861 litres with the seats folded flat, and with them up, there’s a decent amount of space for passengers.

Fiat made this generation of Panda for nine years, giving used buyers a massive amount of choice. Whether you want a sub-£1k bargain or something more recent, you’re covered. There’s even a 4x4 version, although, for affordable insurance, you’re best off sticking with something like an early 54bhp 1.1-litre example.

The Fully Integrated Robotised Engine (FIRE) petrol engines need a cambelt change every 36,000 miles, so it’s worth checking for evidence of this in any included service history. Also, head gasket failures aren’t unheard of, so do the usual check under the oil filler cap for gunky white stuff indicating an unceremonious mixing of fluids.

Toyota Aygo/Peugeot 107/Citroen C1 (ins. around £2500)

They may all have different manufacturer and model names, but these three are effectively the same car built on one production line in the Czech Republic. Interestingly, though, the insurance quotes we got varied significantly between models.

Go with whichever one you can cover for the lowest figure, and if there isn’t much difference between, let the styling guide your decision. Engine choice is nice and simple: you’ll be going for the 1.0-litre inline-three petrol producing 67bhp, as the 1.5-litre diesel is painfully slow and extremely rare since few buyers bothered with it originally.

Water ingress through the rear window and light clusters is a known issue, so check the boot for any damp patches.

Starting price from £2000 - £3000

Dacia Sandero (ins. around £2850)

Good news! The Dacia Sandero might not be exciting, but it is a heck of a lot of car for the money. You can find a few for less than £2000, and that gives you a proper car with more space than most rivals, making it brilliant for longer road trips with mates.

Most of the cars we found in this price range are the 1.2-litre Ambiance models from around ten years ago, but if you’ve got a slightly higher budget you’ll find newer models that shouldn’t be much more to insure. There's also the bargain-basement Access model famed for its lack of body-coloured bumpers, and pretty much anything in terms of equipment. 

Despite being one of the younger cars here, though, early Sanderos can suffer from rust issues. Be sure to check any potential purchase thoroughly.

Vauxhall Corsa (ins. around £2600)

A classic first car for decades now, the Corsa does everything it needs to do and can be insured for a reasonable price. OK, “reasonable” when it comes to first-time insurance, anyway – obviously it’s not particularly affordable, but it compares well to the other cars on this list.

The Corsa is a very decent hatchback with sharp handling and a choice of sleek three-door or slightly more practical five-door models., Look out for 1.0-litre EcoFlex engines for the most affordable options, but it’s worth looking back through the years at various Corsas to see which one will set you back the least.

Smart Fortwo (ins. around £2700)

With a heritage directly tied to Mercedes, the Smart Fortwo is actually pretty premium considering its size, which makes it a moderately swanky car that you can pick up for less than £2000. And it’s a cracking little urban runabout, too, available with a 1.0-litre engine in a variety of trims.

Once again, you’ll get more variety and slightly newer options if you up your budget, but there are several cars from the late noughties around for this price point. Just don’t expect to be able to carry many passengers.

Starting price from £2000 - £3000

Skoda Fabia (ins. around £2600)

Skodas are brilliant value, usually giving you more space and features for your money than rivals. Theoretically Fiesta-sized, the Fabia actually has more room inside for mates and stuff, making it another good long-distance machine. Look out for cars fitted with smaller engines, such as the 1.2-litre 59bhp or 54bhp models, as those will give you the most affordable insurance.

Most cars at this price will be from the mid-2000s, but the odd newer one pops up for less than £3000 too, so it’s worth keeping your eyes peeled.

VW Up!/Seat Mii/Skoda CitiGo (ins. around £2400)

When the Toyota Aygo and its chums were released, VW‘s answer to the city car question was the Fox. Which wasn’t particularly good. Thankfully, the car that replaced it, 2011’s Up! (exclamation mark optional) is a whole different ball game.

Like the Aygo, it was one of three near-identical siblings, with the Skoda Citigo, Seat Mii and the VW Up! all built at the same factory in Bratislava, Slovakia. The Up! is the best looking and has the best badge, while the Skoda arguably represents the best value.

The Seat shouldn't be discounted, though - you can’t go far wrong with any of these. They’re solidly-built, well-thought-out cars that shouldn’t give any expensive surprises down the road. The sole engine on offer is a 1.0-litre inline-three, although it’s produced in different states of tune. Best stick to the entry-level 59bhp for lower insurance costs, though.

Updated in September 2025 by Phill Tromans