Which cars are affordable for new drivers in terms of insurance? Making cost reduction easy
2 Apr 2025
3
Minutes
Katrin Straub
CEO at nextsure
The first car of your own is a big step, but insurance costs can quickly become a burden for beginner drivers. Find out which cars are inexpensive to insure and how you can significantly reduce your premium. Save real money with our tips.
The topic in brief and concise terms
New drivers typically start in the expensive SF class 0, but can significantly save through various strategies such as the second car rule or telematics tariffs.
Choosing a vehicle with a lower insurance group (e.g., a small car) significantly reduces the insurance premium.
Accompanied driving from the age of 17 and the subsequent transfer of no-claims classes are effective ways to reduce insurance costs.
Understanding and Optimising Insurance Premiums for New Drivers
New drivers often face high premiums for car insurance. Insurers assess the risk of young drivers aged between 18 and 24 as higher, which is reflected in the premiums. Statistics show that this age group is more frequently involved in accidents. Beginners generally start in the least favourable no-claims class (NC class) zero, which often means a premium rate of over one hundred percent. Each accident-free year improves the NC class, and the insurance becomes cheaper. It is important to be aware of the different types of insurance: Third-party liability insurance is legally required and covers damage you cause to others. Partial comprehensive insurance additionally covers damage to your own vehicle due to events like theft or hail, while fully comprehensive insurance also covers at-fault accident damage and vandalism. Choosing the right cover depends on the vehicle value and individual security needs.
Identify cost factors and actively reduce premiums
Several factors significantly influence the amount of your insurance premium. The vehicle type classification plays a key role; models that are statistically less involved in accidents or incur lower repair costs have lower type classifications and are therefore cheaper to insure. The regional classification also has an impact, reflecting the frequency of claims in your registration area – in rural areas with less traffic, premiums are often lower than in large cities. Your personal characteristics such as age, duration of holding a driving licence, and annual mileage are other important criteria for calculating the contributions. Drivers under 25 years old often pay risk surcharges. A low annual mileage can also reduce the premium. Understanding these factors is the first step towards optimising your insurance costs.
Choosing a vehicle: Select affordable models for novice drivers
Choosing the right car can significantly impact insurance costs, especially for new drivers. It is advisable to check the model's insurance group before purchasing. Vehicles with lower insurance groups in third-party, partial comprehensive, and full comprehensive insurance result in noticeably lower premiums. Some of the models often rated favourably for beginners include:
Hyundai i10 (e.g. 1.1 CRDI with insurance group 12 in partial comprehensive)
Ford Ka (e.g. 1.2 with insurance group 10 in full comprehensive)
Seat Arona (e.g. 1.0 with insurance group 12 in third-party liability)
Dacia Spring (insurance group 14 in full comprehensive)
Many small cars and models with lower horsepower tend to be cheaper. Whether a new or used car is the better choice depends on various factors; used cars are often cheaper to purchase, which can also have a positive effect on comprehensive insurance. Thorough research on affordable cars in insurance is always worthwhile.
Take advantage of savings potential: Effective tips for your first insurance policy
There are numerous ways for novice drivers to reduce insurance costs. One very effective method is the second car regulation, where the car is insured through the parents; this often starts directly in a better no-claims class, such as SF half. Driving accompanied from the age of 17 is also recognized by many insurers and can lead to lower premiums, as driving experience has already been gained. Modern telematics tariffs, where driving behaviour is recorded via an app or box in the car, can provide discounts of up to thirty percent with careful driving. Further savings options include:
Agreeing on a deductible in the comprehensive insurance (e.g., one hundred and fifty euros in the partial cover).
Choosing a workshop commitment, where repairs are carried out in the insurer's partner workshops.
Providing a realistic indication of the annual mileage; fewer miles often mean a lower premium.
Opting for annual payment instead of monthly or quarterly instalments can also save costs.
Even small adjustments can result in savings of several hundred euros per year. These measures help to significantly reduce the financial burden of the first car insurance.
Expert knowledge for novice drivers: Mastering SF class transfer and special classifications
In addition to the tips already mentioned, there are advanced strategies for cost optimization. One option is the transfer of no-claims classes from relatives, such as grandparents, when they deregister their vehicle. However, you can only take over as many claim-free years as you have held your own driving license. Some insurers offer special classifications under certain conditions that are better than the usual SF-class zero for novice drivers. This can be the case, for example, if your partner already has a contract with the same insurer with a good SF class. Our expert tip: Actively ask insurers about such individual regulations. In the long term, it is important to know that your insurance premium develops positively with each accident-free year and reaching a higher SF class; patience and safe driving, therefore, pay off twice. Awareness of these options enables an even more targeted reduction of the insurance burden.
Long-term perspective: Contribution development and smart contract adjustment
The cost of car insurance can initially be a challenge for novice drivers, but it doesn't remain high indefinitely. With each year of accident-free driving, you move up to a better no-claims discount class (SF-Klasse), leading to a significant reduction in your premiums. After three years of driving experience, many insurers already offer young drivers more favourable rates. It is advisable to regularly review your insurance coverage and adjust it to your current life situation. For instance, if your annual mileage or the circle of drivers changes, this should be reported to the insurer to potentially save on premiums or avoid underinsurance. Regularly compare rates, especially after a few years of driving experience. Switching providers or tariffs can then bring substantial savings, as your risk classification has improved. This way, you secure permanently favourable conditions.
nextsure: Your partner for tailored insurance coverage
As a digital insurance portal, it is our mission at nextsure to offer you comprehensive and customised insurance solutions. We understand that car insurance can be particularly complex for novice drivers. That’s why we support you with expert advice and fully digitalised conclusion processes to find the best and most cost-effective insurance solution for you. We help you avoid pitfalls and take full advantage of savings opportunities. Trust in our expertise in the field of insurance.
Request an individual risk analysis now: Have your insurance situation checked free of charge and receive specific suggestions for optimisation.
More useful links
Wikipedia provides information about insurance type classes in Germany.
The Federal Statistical Office (Destatis) offers statistics on traffic accidents involving 18 to 24-year-olds in Germany.
The Insurers (GDV) offer a type class query for car insurance.
The GDV succinctly and clearly explains the type classes of car insurance.
The German Road Safety Council (DVR) dedicates a section to young drivers on its theme page.
The Accident Research of Insurers (UDV) provides a study on accident risk and prevention measures for young car drivers.
The Federal Motor Transport Authority (KBA) provides statistics on vehicle age in Germany.
The Federal Highway Research Institute (BASt) publishes articles on the topic of beginner drivers.
FAQ
Which insurance is mandatory for new drivers?
Motor vehicle liability insurance is legally required in Germany for every vehicle owner, including beginner drivers. It covers damages caused to others in road traffic.
Is comprehensive insurance worth it for the first car?
A comprehensive insurance policy is particularly worthwhile for novice drivers, especially with new cars or very high-quality used cars, as it also covers self-inflicted damage to your own vehicle and vandalism. For older cars with low value, a third-party, fire and theft policy or just liability insurance may suffice.
What does the no-claims discount class SF 0 mean?
SF class 0 is the usual classification for beginner drivers without previous driving experience or transferable no-claims years. It is the most expensive class with contribution rates often well over one hundred percent of the basic contribution.
Can I take over my parents' no-claims discount class?
Yes, under certain conditions, novice drivers can take over the no-claims bonus (SF class) from close relatives like parents or grandparents, often when they deregister their vehicle. However, you can only be credited with a maximum number of claim-free years equivalent to how long you have held your driving licence yourself.
Does the annual mileage affect insurance costs for beginners?
Yes, the estimated annual mileage is a factor in calculating the premium. Low-mileage drivers typically pay lower premiums as they are considered to have a reduced accident risk.
What is a telematics tariff and is it useful for novice drivers?
With a telematics tariff, driving behavior (e.g., speed, braking behavior) is recorded via an app or a box in the car. Safe driving can earn discounts of up to thirty percent, making it particularly attractive for cost-conscious novice drivers.
