The good news? You can tilt the odds back in your favour. Picking the right car, can make a real dent in what you’ll pay each year.
If you’re choosing your first car (or helping your son or daughter choose theirs), here are five vehicles that stand out in 2025 for affordability, practicality, and low insurance costs.
1. Citroen C1
Light, easy to drive, and remarkably cheap to run, the Citroen C1 has been a favourite for first-time motorists for good reason. Its compact size is perfect for navigating Liverpool’s often tight terraced streets, while the 1.0L engine keeps performance sensible and insurance costs in check.
Parents love it for its simplicity and low repair costs. And for new drivers, it's reassuringly easy to park, cheap to maintain, and unlikely to lead you into costly mistakes. Average insurance premiums hover around £1,181 — one of the lowest you’ll find for a car of its class.
If you’re facing your first few years on Liverpool’s busy roads, the C1 is a confidence-building companion.
2. Toyota Aygo
Need something small but a bit more refined? The Toyota Aygo could be a perfect match. With its playful design, super-tight turning circle, and a brilliant reliability record, it’s no wonder the Aygo is a popular pick for Liverpool’s younger drivers.
Insurance companies love it too: excellent safety ratings, a modest 1.0L engine, and low repair costs all help keep premiums down. You’re looking at around £1,182 per year — money well spent for peace of mind on everything from city centre commutes to Sunday drives to Formby or Southport.
3. Volkswagen Up
The Volkswagen Up proves that affordable doesn’t have to mean boring. Small enough for Liverpool's busier areas but tough enough for motorway trips down the M62, the Up’s robust design and strong safety ratings make it a serious contender.
Behind the wheel, it feels solid and confidence-inspiring — two things every new driver needs. Insurers appreciate its low risk factors, helping to keep average premiums around £1,215 annually. It’s a fantastic choice if you’re looking for a car you won’t outgrow after your first year.
4. Ford Ka / Ka+
Practical, no-nonsense, and reassuringly affordable, the Ford Ka is ideal if you simply need a dependable first car without unnecessary frills. Its small footprint makes it a natural fit for squeezing into Liverpool’s sometimes challenging parking spots.
Running costs are low, parts are easy to find, and the 1.2L engine provides just enough power for city and suburban life without hiking up your insurance quote. Expect annual premiums around £1,225, making it one of the most wallet-friendly options for new drivers across Merseyside.
5. Fiat 500
For those who don’t want to compromise on style, the Fiat 500 offers the best of both worlds. Yes, it’s undeniably trendy — but underneath the retro looks lies a practical, safe, and efficient first car.
Liverpool’s tight city streets and busy retail parks are no match for the Fiat 500’s tiny frame. Plus, its small engines (typically 1.0L–1.2L) mean you won’t be punished too harshly on insurance costs. Expect premiums around £1,270, making it an affordable choice for those who want a car that looks as good as it drives.
Just steer clear of the performance-oriented Abarth versions if you want to keep those costs in check.
How Insurance Groups Affect Costs — and What Is the Cheapest Insurance Group?
If you’re new to the idea of insurance groups, here’s what you need to know: every car sold in Britain is placed into a group from 1 to 50, depending on factors like repair costs, safety features, performance, and security.
The lower the group, the cheaper the insurance. Cars like the Citroen C1 and Toyota Aygo sit in groups 1–6, making them some of the most affordable choices for young drivers. Meanwhile, a high-performance BMW or Audi could be lurking in group 40 or higher — and insurers will charge accordingly.
In practical terms, sticking to vehicles in the lowest insurance group can knock hundreds of pounds off your premium. That’s money better spent on petrol, maintenance, or even saving towards a bigger upgrade later.
If you’re serious about keeping costs manageable during those critical first years of driving, always check the insurance group before you buy. It could make all the difference between affordable freedom — and an expensive mistake.