Young drivers generally suffer the brunt of high motoring costs because age and inexperience play a large role in determining how risky you are.
When looking out for the cheapest cars to insure as young drivers, make sure to consider the prices of:
- Vehicle tax
- Fuel prices
- Automobile insurance
The easiest approach to figuring out how much your auto insurance will cost is to acquire multiple quotations, which you can do using the make and model even if you don’t yet have the license plate.
But, to get you started, we crunched the figures to determine the cheapest cars to insure for young drivers who normally pay the most for auto insurance. You can now weigh that against the purchase price and other considerations.
We’ve even looked into the most expensive cars to insure for young drivers in order to help you avoid making a costly error if you’re searching for something a little less expensive to run.
Our pricing team searches our policy base for the cars that were the cheapest to insure for young drivers on average in the past several months (where we have 50 or more of each model insured with us).
Looking at statistics from May 2022 to May 2023, we notice a few new additions to the top ten, some dropping out, and some moving.
Cheapest Cars to Insure for Young Drivers
- Austin MINI
- Rover MINI
- SEAT Arona
- Škoda Kamiq
- Škoda Citigo
- Ford Puma
- MG ZS
- Volkswagen T-Cross
- Kia XCeed
- Suzuki Celerio
So, let’s take a closer look at this list and learn more about the cheapest cars to insure for young drivers.
The Cheapest Cars to Insure for Young Drivers
#1. Austin MINI
Average Annual Premium: $372.18
Associated with 1960s-era Britain, the Austin is now something of a collector’s item, despite having a long production cycle (1959–2000).
Outside of nostalgia and aesthetics, there are other reasons to drive an Austin; they are inexpensive to operate and simple to drive.
Running costs are quite low, with its engine achieving 40 mpg, but there is a catch. The Austin has a top speed of 75 mph and a 0-60 time of 29.7 seconds.
It’s not exactly a car designed for modern highways, but its modest speed means you can get the cheapest auto insurance as a young driver.
It also helps if it is visually appealing.
#2. Rover MINI
Average Annual Premium: $545.54
The Rover MINI is fairly similar to its previous Austin counterpart, although there are a few important distinctions.
It’s a touch faster than the Austin and its running expenses are nearly the same.
Top speeds vary according to the model year, but on average, a Rover can reach 90 mph and accelerate from 0 to 60 mph in 12.2 seconds. You get all of the advantages of driving a MINI in a more compact package, including easy parking.
By the way, driving this version of the MINI still earns you cool points.
#3. SEAT Arona
Average Annual Premium: $628.46
SEAT is a well-known brand on British roads, and it’s easy to see why considering the high quality of their standard models. The Arona is simply a larger version of the popular SEAT Ibiza, complete with a low running cost and competitive price.
Drivers can pick between five engine options that generate 44.8-53mpg. Along with inexpensive operating and insurance expenses, its engine produces adequate power, with its entry-level 1.0-litre petrol producing 94bhp.
The Arona is also simple to drive, making it an excellent choice for your first SUV. The Arona checks all the boxes for a young driver: low cost, low running costs, and ease of operation.
#4. Koda Kamiq
Average Annual Premium: $630.19
The Kamiq from Koda is a tiny SUV with a lot of extra amenities and a reasonable insurance price.
The Kamiq, with five doors, a reported MPG of 46.7-53.2, and three engine options, is your next choice if you want a car that gets the job done quickly.
#5. Koda Citigo
Average Annual Premium: $648.51
This award-winning city car has become a common sight on our roadways. The Koda Citigo, like its Volkswagen Group siblings the SEAT Mii and VW Up!, is adorable, fun to drive, and surprisingly capacious. The cargo has a reasonable 251 liters of luggage storage (959 liters if the rear seats are folded down), and there’s even room for two adults to sit in the back.
The Citigo, which is no longer available new, is a wise second-hand alternative, and there are plenty of low mileage models in good condition available.
#6. Ford Puma
Average Annual Premium: $648.97
Ford’s Puma has earned a name for itself in the crossover sector, occasionally outselling the ever-popular Fiesta and Focus.
With 80 liters of storage space, waterproof protection, a quick drive, and a few engine options, it’s a secure bet for drivers aged 17 to 25.
It’s a reliable vehicle.
#7. MG ZS
Average Annual Premium: $670.14
This electric SUV offers an excellent range of 163 miles, plenty of space, and a low starting price for a family vehicle.
It’s an excellent choice if you want an electric SUV with a long battery life, a longer warranty, and low insurance rates.
#8. Volkswagen T-Cross
Average Annual Premium: $670.63
The Volkswagen T-Cross can be summed up in one word: spacious. It’s a pleasant car to drive and ride in, with plenty of luggage space and leg room.
The model features 385 to 455 liters of space, making it an excellent alternative for outdoor enthusiasts who want equipment storage.
The engine is also adequate, with a claimed mpg of 49.6 and a 0-62mph time of 10 seconds for the entry-level 94bhp model.
The low insurance cost is due, as with the other SUVs on our list, to the car’s safety, modest speed, and easy handling.
#9. Kia XCeed
Average Annual Premium: $670.73
The XCeed from Kia is swiftly becoming one of the brand’s most popular models.
It’s a simple car for people who need a reliable motor to drive from point A to point B. It also has a luxurious interior and accurate handling.
#10. Suzuki Celerio
Average Annual Premium: $673.17
Small city cars like the Suzuki Celerio are frequently seen as good buys. Its five doors, minimal depreciation, and low operating expenses make it a cost-effective, hassle-free vehicle.
It’s the best option if you want an entry-level car that’s simple to drive, with insurance costs averaging £673.17.
Which Cars Are the Most Expensive to Insure?
Do you want to discover which cars may have the highest insurance bill?
Unsurprisingly, massive, fast, and powerful vehicles top the list:
Which States Have the Lowest and Highest Prices?
As previously stated, the cost of auto insurance for teens varies by state. Hawaii is the cheapest state for annual minimum and full coverage for 16-year-old drivers since the state does not consider age when calculating car insurance costs.
North Carolina, with the exception of Hawaii, has one of the lowest average premiums for a full-coverage annual policy. Those over the age of 17 should pay a little less than $2660. In Iowa, the cheapest minimum coverage rate is around $930 per year.
Compare that to the rates in Louisiana, where full-coverage annual policies for 16-year-old drivers are the most expensive. A full-coverage annual policy will cost you more than $11,500.
A 17-year-old driver will pay less than a 16-year-old, but auto insurance will still be expensive. A 17-year-old driver should spend approximately $5370 per year for full coverage and $2206 per year for minimum coverage.
Read Also: HOW TO CANCEL CAR INSURANCE: Explained!
These 17-year-old drivers pay the highest rates in Louisiana, where full-coverage prices exceed $9255 a year. Michigan has the highest minimum coverage cost, at just about $4070 per year.
An 18-year-old driver pays little more than $4830 per year on average for full coverage, while the average yearly minimum coverage rate is $1940.
Aside from Hawaii, North Carolina offers one of the cheapest average annual full-coverage premiums at $2398, while Iowa has the cheapest minimal coverage at around $812 per year.
19-year-old drivers are the cheapest to insure because they have their license for longer and have spent more time behind the wheel. A full-coverage policy costs about $3717 per year, while a minimum-coverage policy costs about $1451 per year.
North Carolina, with the exception of Hawaii, is the cheapest state for drivers of this age. The average full-coverage annual policy is $1490, while a minimum-coverage policy costs $550. Louisiana has the highest yearly cost for complete coverage, at $6240. At $2890 per year, Michigan tops the list for a minimum-coverage policy.
Is Gender a Factor in Teenage Car Insurance Costs?
Although young women’s vehicle insurance is more expensive than that of women in their twenties, teenage men typically have high car insurance premiums, even if they have pristine driving records. One of the reasons is that they lack experience, and auto insurers are unable to establish premiums since they lack driving histories.
When a driver’s record cannot be used to assess the chance of filing a claim, companies rely on statistics to determine general risks and establish premiums.
Male teenagers cause more crashes than other age groups, according to the Insurance Institute for Highway Safety (IIHS). According to the IIHS, youths aged 16 to 19 are responsible for nearly three times as many fatal accidents as people aged 20 and older.
What Effect Does My Driving Record Have On My Car Insurance?
When insurance companies determine your rate, they consider your age, how long you’ve held your license, and any penalty points or convictions. If you have a clean driving record and a long no-claims history, you should be rewarded with lower auto insurance rates.
What Effect Does Engine Size Have On Car Insurance?
In general, the larger the engine in your car, the greater the insurance price. This is because powerful high-performance cars are thought to be more likely to be involved in an accident and are usually more expensive to replace. Smaller cars with smaller engines are likely to be less expensive.
What Effect Does Security Have On Car Insurance?
Alarms, immobilizers, and other security systems are all intended to prevent criminals. Installing these security measures may result in a lower insurance rate from your provider.
Your premium will also be affected by where you keep your automobile while it is not in use. It is more likely to be targeted by thieves if it is parked on the street. However, if it is stored in a CCTV-monitored parking lot or secure garage, insurance companies may consider it less of a danger.
What Effect Does the Insurance Group Have On Your Car Insurance Premium?
A vehicle insurance group is assigned to all cars. These numbers range from one to fifty. Cars in lower insurance groups are often the least expensive to insure, whilst those in group 50 are among the most expensive.
How Can New Drivers Save Money on Car Insurance?
In the first case, new drivers can reduce their car insurance costs by selecting a vehicle with a modest power output. Car insurance penalizes more powerful cars especially harshly for inexperienced drivers, so maintain engine power as low as possible. It’s also a good idea to stick with a well-known brand of car, which should be less expensive to fix. Driving a smaller, more inexpensive city car or supermini rather than a larger, more glamorous vehicle, as well as parking on a private drive or in a garage rather than on the street, will also help.
Why Is Car Insurance So Expensive for First-Time Drivers?
Car insurers create risk profiles based on statistics and historical accident data. All of this points to new drivers being among the most dangerous drivers, which is why auto insurance is so expensive for them. Age, gender, where you reside, and, of course, the type of vehicle you drive are all factors. It is an unpleasant fact of life that rookie drivers will pay more for auto insurance than more experienced drivers.
What Is Telematics Auto Insurance?
To save money on insurance, many new drivers are switching to telematics auto insurance. This entails installing a ‘black box’ that tracks where and when they drive. It keeps track of things like speed, acceleration, braking, and other information. The objective is to encourage safe and consistent driving while penalizing new drivers who drive recklessly. For individuals who don’t mind being tracked all the time, black box auto insurance is consequently less expensive than standard car insurance.
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