10 Best Cars for Under 25 (Low Insurance UK Guide)
Finding the best cars for under 25 in the UK can’t be as easy as it sounds. The average car insurance premium for new drivers often hits £2,217. Sometimes it costs more than the car itself. As automotive experts with over a decade of experience in the UK market, we have list the best new and used cars under 25 which are cheap to insure.
So, let’s get started!
5 Best New Cars Under 25
Comparison Table of Best New Cars for New Drivers
Below is a compilation of the top five new cars for young drivers that feature low insurance groups and excellent fuel efficiency.
| Model | New Price Range | Lowest Insurance Group |
Estimated MPG (WLTP) |
| Hyundai i10 | £16,400 – £19,900 | Group 1 | 55 MPG |
| Dacia Sandero | £14,800 – £18,300 | Group 2 | 53 MPG |
| Kia Picanto | £16,000 – £20,300 | Group 4 | 54 MPG |
| Volkswagen Polo | £21,600 – £27,000 | Group 3 | 54 MPG |
| Skoda Fabia | £21,000 – £27,000 | Group 4 | 55 MPG |
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1. Hyundai i10
This is the benchmark for new drivers buying new. The Hyundai i10 manages to feel high-quality and modern while staying right at the bottom of the insurance charts. With its small engine, the 1.0-litre automatic variant lies in group 1 of insurance groups.
Also, each new i10 is backed by a 5-year, unlimited-mileage warranty. This makes it an ideal option for new drivers, providing peace of mind with the warranty, excellent fuel efficiency, and minimal maintenance costs.
2. Dacia Sandero
The Dacia Sandero is famous for being the most affordable new car in the UK market. Its price starts from £14,320 for the base model, and it is considered Europe’s best-selling car.
For low insurance costs, you should stick to the base SCe 65 engine, which typically sits in Insurance Group 2-4. And compared to Hyundai i10, the Sandero is a true supermini, meaning it has a much larger boot and more rear passenger space.
3. Kia Picanto
The Kia Picanto is the stylish compact car with a sportier look which is perfect for new drivers. Kia offers an incredible 7-year/100,000-mile warranty. For a young driver, this is unbeatable peace of mind.
Aim for the entry-level 1.0 DPi engine in the ‘2’ trim. This setup typically falls into Insurance Group 1 to 4, keeping your premiums low. However, the performance is modest on motorways, and it also has average Euro NCAP ratings.
4. Volkswagen Polo
The Volkswagen Polo is the most premium car on this list. It feels and drives like a much bigger, more expensive car. It offers exceptional stability and safety on motorways thanks to its robust build quality.
However, to be in a low insurance group, 1 to 3, you must choose the entry-level 1.0 MPI (81 bhp). The Polo is the car that doesn’t feel like a compromise. It looks great, it’s comfortable, and it has good resale value.
5. Skoda Fabia
The Skoda Fabia is a supermini that has a generous boot capacity of 380 litres. It’s also built on the same excellent platform as the VW Polo. It means you get all the reliable engineering at a slightly lower price point.
Moreover, it is easy to drive and offers great fuel economy, with the 1.0 TSI 95 PS model achieving up to 58 mpg. With its 1.0-litre MPI (60 hp) engine, the Fabia sits in insurance group 4.
5 Best Used Cars Under 25
Comparison Table of Best Used Cars for New Drivers
Below is a compilation of the top five used cars for new drivers that feature low insurance groups and excellent fuel efficiency.
| Model (Recommended Years) | Used Price Range |
Lowest Insurance Group |
Estimated MPG |
| Volkswagen Up! (2015–2022) | £3,000 – £9,000 | Group 1 | 60 MPG |
| Toyota Aygo (2014–2022) | £1,500 – £12,000 | Group 3 | 60 MPG |
| Vauxhall Corsa (2015–2019) | £1,545 – £9,715 | Group 2 | 50 MPG |
| Toyota Yaris (2015–2019) | £5,000 – £12,000 | Group 2 | 55 MPG |
| Ford Fiesta (2017–2022) | £7,500 – £15,000 | Group 2 | 50 MPG |
1. Volkswagen Up
The VW Up! is often considered the best small city car of the last decade. It offers a premium feel you don’t expect from a tiny car. It’s one of the cheapest to insure, where the base 1.0-litre engine in the Up!, especially the Take Up! and Move Up! trims, is consistently listed in Insurance Group 1. It’s the lowest group and will significantly reduce your premium.
Regarding the price range, a decent, well-maintained 2014-2018 model can be found between £3,000 and £9,000. For a young driver, it’s arguably the best car, which is reliable, cheap to insure and with low maintenance costs.
2. Toyota Aygo X
Toyota is legendary for reliability, and the Toyota Aygo X is no exception. Its 1.0-litre engine is nearly unbreakable, which means fewer worries about expensive breakdowns. We also recommend go for the older, second-generation Toyota Aygo (2014-2022). It shares its components with the Peugeot 108 and Citroen C1.
This model typically costs between £1,500 and £12,000, with the price depending on its age, condition, mileage, and trim level. However, the late models like (2020-2022) are generally higher, ranging from around £7,000 to £12,000 or more for newer models.
3. Vauxhall Corsa
The Vauxhall Corsa is considered the UK’s favourite car and has been a consistent best-selling supermini. It’s the ultimate ‘easy to own’ car because it is everywhere. This massive availability means that parts are cheap, and every local garage knows exactly how to service and fix them.
Due to its popularity, you can find solid, high-value models (2014-2018) for a wide range, generally between £1,545 and £9,715. You have to look for turbocharged petrol engines (like the Corsa’s 1.0 or 1.4-litre turbo), as they offer a good blend of performance and fuel economy.
4. Toyota Yaris
Next, we have the Toyota Yaris, a robust vehicle known for its reliability. It gives you long-term peace of mind because Toyota engineering is so good, you won’t face many unexpected failures. This saves you thousands in mechanic bills over several years.
However, you’ll find a great example from the 2015-2018 era for between the range of £5,000 and £12,000. This is the car you can purchase and simply forget about. The model you should consider is the 1.0-litre VVT-i petrol engine, which falls into Insurance Group 3, making it one of the most affordable options with exceptional reliability.
5. Ford Fiesta
The Ford Fiesta has long been the UK’s favourite car for a reason due to its reliability, driving experience and stylish appearance. The famous Ford Fiesta 1.0-litre EcoBoost engine is a marvel. It’s a small, three-cylinder engine that uses a turbocharger, which gives a large power of 123 bhp.
After all, it is available everywhere, and there is no tension of parts availability and service costs.
Final Verdict: Best Cars for Under 25
You have two excellent shortlists of the best cars for under 25, one for buying new and the other for buying a used car. However, the new car will give peace of mind with a warranty; the other can save your money with proven reliability. So choosing a car from the low insurance groups (Group 1-5) is the single most important decision you can make right now.