Asger Risom
New drivers in the UK often face extremely high insurance premiums, but choosing certain small cars — including the Fiat 500 and Peugeot 108 — can significantly reduce the cost.
For many young people in the UK, passing the driving test is only the beginning. The real shock often comes later — when the insurance quote arrives.
Drivers aged 17 to 24 routinely face some of the highest premiums on the road. Insurers consider new drivers a higher risk because statistics show they are more likely to be involved in accidents, especially in their first years behind the wheel.
But the type of car a new driver chooses can make a significant difference. According to data cited by the RAC, some small, reliable models consistently attract lower insurance quotes for young motorists.
Why insurance is so expensive for young drivers
Car insurance is a legal requirement in the UK for anyone driving or even parking a vehicle on public roads.
At minimum, drivers must have third-party cover, which protects others in the event of a crash.
For younger motorists, the cost can easily reach hundreds of pounds per month. Insurers calculate premiums based on risk factors such as driving experience, accident statistics, vehicle performance, and repair costs.
Some new drivers try to reduce premiums by installing telematics “black box” devices that monitor driving behaviour, or by agreeing to restrictions such as night-time curfews.
Still, choosing the right car remains one of the most effective ways to keep insurance costs down.
The 10 cheapest cars to insure for drivers aged 17–25
According to the RAC, the following cars typically produce some of the lowest insurance quotes for young drivers:
- Fiat 500
- Peugeot 108
- Hyundai i20
- Ford Fiesta
- Vauxhall Corsa
- Renault Clio
- Peugeot 208
- Toyota Aygo
- Skoda Fabia
- Citroën C1
These models are generally small, widely available, and relatively inexpensive to repair — factors that insurers tend to reward with lower premiums.
Why the Fiat 500 tops the list
The Fiat 500 takes the top spot, despite the fact that some other small cars technically fall into lower insurance groups.
According to the RAC, the model consistently produces the lowest quotes for 17-year-old drivers on average.
Originally launched in 1957 as a compact and affordable car for Italian drivers, the modern Fiat 500 keeps the same compact design but adds modern technology and styling. Its popularity and relatively low running costs have helped it remain a common choice for first-time drivers.
Other affordable options
The Peugeot 108 is another strong option for young motorists seeking lower premiums. It shares much of its engineering with the Toyota Aygo and Citroën C1, though the RAC says it often produces slightly cheaper insurance quotes among the three.
The Hyundai i20 also appears on the list. While Hyundai’s smaller i10 sits in lower insurance groups, the larger i20 tends to average cheaper premiums for 17-year-old drivers. It also offers more interior space and practicality, making it a more comfortable option for longer trips.
Other ways to reduce insurance costs
Experts say young drivers can further lower premiums by increasing their voluntary excess, adding an experienced driver to their policy, or choosing vehicles with smaller engines.
But even with those strategies, the choice of car remains one of the biggest factors influencing how much a young driver will pay.
For many new motorists, that decision could mean the difference between affordable freedom on the road — or a monthly bill that makes driving far less appealing.
Source: RAC
