5 Cars That First Time Drivers Can Insure on the Cheap

12 Dec

Insurance costs for young people are at an all-time high, with young people aged 17-20 now paying around four times as much for their insurance as drivers in other age groups. This can mean that the annual insurance premium for a young driver (especially a young man) can easily exceed the value of the car being insured. This article examines some of the more affordable cars to insure for first-time drivers, as well as some of the models to avoid. Only realistic options for the newly qualified driver have been considered, so there is no mention of Ferraris or Porsches! The article then explores telematics technology and how it can lower insurance costs for some drivers.

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Cars that are relatively cheap to insure for first-time drivers

Unsurprisingly, the ever popular Ford Ka is probably the cheapest car around for young drivers to insure. The Ka and the Ka2 models top the list, as their low initial purchase costs and small engines help to keep their insurance costs low. The Peugeot 107 follows closely behind, followed by the Daewoo Matiz and the Mini One as the fourth and fifth most affordable cars for young drivers to insure. Careful drivers may be able to lower their costs even more by using the new ‘black box’ technology described at the end of this article.

Outside of the top-five cheapest, but still worth a look are the Nissan Micra, Ford Fiesta, Peugeot 106, Peugeot 206, Renault Clio and VW Polo. Different versions of the same model could easily appear on both lists; entry-level Vauxhall Corsas, for example, are reasonable to insure but sportier versions may double the insurance cost.

Cars to avoid

Top of the list of the most expensive cars for young people aged 17-20 to insure is the Honda Civic, which is closely followed by the Volkswagen Golf. Third and fourth on the list and roughly equal in insurance cost, are the Vauxhall Astra and the Ford Focus. Last and definitely not least in terms of insurance cost, comes the Renault Megane. Roughly speaking, these cars cost around twice as much to insure as those on the list of cheapest options.

Cars fitted with telematics

Some young drivers are turning to innovative new telematics technology in a bid to reduce insurance costs. The ‘black box’ fitted to a car records the driving habits of the car owner and assigns him a safety rating of one to five. A driver classified as one on the scale is considered dangerous and will see his premium rise. Drivers who score four or five are likely to see their insurance costs lowered. Premiums are reviewed every 90 days. It is early days for telematic technology, but more and more insurers are now offering premiums that are contingent on its use. So, if you are a careful driver, this option could well be for you and is well worth considering. However, if you are a boy (or girl) racer,
you could see your premium rise by as much as 20%.

::This article was contributed by Lloyd, a freelance writer and blogger, who is currently working for SO Switch

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Date posted: December 12, 2012