Which cars are cheap to insure for new drivers? Reducing costs made easy
02.04.25
12
Minutes
Katrin Straub
Managing Director at nextsure
Buying your first car is a big step, but insurance costs can quickly become a burden for new drivers. Find out which cars are cheap to insure and how you can significantly reduce your premium. With our tips, you can save real money.
The topic in brief and concise terms
New drivers usually start in the expensive no-claims class 0, but can save considerably through various strategies such as the second-car rule or telematics tariffs.
Choosing a vehicle with a low insurance group (e.g. a small car) significantly reduces the insurance premium.
Accompanied driving from age 17 and the later transfer of no-claims bonus classes are effective ways to reduce insurance costs.
Understanding and optimising insurance premiums for new drivers
New drivers often face high car insurance premiums. Insurers assess the risk posed by young drivers aged between 18 and 24 as higher, which is reflected in the premiums. Statistics show that this age group is involved in accidents more frequently. Beginners usually start in the least favourable no-claims class (SF class) zero, which often means a premium rate of over one hundred per cent. With each claim-free year, the SF class improves and the insurance becomes cheaper. It is important to know the different types of cover: third-party motor insurance is required by law and covers damage you cause to others. Partial comprehensive insurance also covers damage to your own vehicle, for example due to theft or hail, while fully comprehensive insurance also covers accident damage caused by yourself and vandalism. The choice of the right cover depends on the value of the vehicle and your individual need for protection.
Identify cost drivers and actively reduce premiums
Several factors have a significant influence on the amount of your insurance premium. The vehicle type class plays a central role; models that are statistically less likely to be involved in accidents or incur lower repair costs have lower type classes and are therefore cheaper to insure. The regional class also has an effect, reflecting the level of claims in your registration district – in rural areas with less traffic, premiums are often lower than in major cities. Your personal characteristics, such as age, length of time you have held a driving licence and annual mileage, are further important criteria for calculating the premium. Drivers under 25 often pay risk surcharges. Low annual mileage can also reduce the premium. Understanding these factors is the first step towards optimising your insurance costs.
Vehicle selection: Choosing affordable models for beginner drivers
Choosing the right car has a significant impact on insurance costs, especially for new drivers. It is advisable to check the insurance class of the model you are considering before buying. Vehicles with low insurance classes for third-party liability, partial comprehensive and fully comprehensive cover result in noticeably lower premiums. Models that are often classified as affordable for beginners include, for example:
Hyundai i10 (e.g. 1.1 CRDI with insurance class 12 in partial comprehensive cover)
Ford Ka (e.g. 1.2 with insurance class 10 in fully comprehensive cover)
Seat Arona (e.g. 1.0 with insurance class 12 in third-party liability)
Dacia Spring (insurance class 14 in fully comprehensive cover)
Many small cars and models with less 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 buy, which can also have a positive effect on comprehensive insurance. Careful research into cheap cars to insure is always worthwhile.
Unlock savings potential: Effective tips for your first policy
There are numerous ways to reduce insurance costs as a new driver. One very effective method is the second-car arrangement, where the car is insured through the parents; this often lets you start straight away in a better SF class, such as SF 0.5. Accompanied driving from the age of 17 is also rewarded by many insurers and can lead to lower premiums, as driving experience has already been gained. Modern telematics tariffs, in which driving behaviour is recorded via an app or a box in the car, can, with careful driving, enable discounts of up to thirty per cent. Other ways to save are:
Agreeing to an excess in comprehensive cover (e.g. one hundred and fifty euros in partial comprehensive cover).
Choosing a repair-shop tie-in, where repairs are carried out in the insurer's partner garages.
Stating annual mileage realistically; fewer kilometres often mean a lower premium.
Annual payment instead of monthly or quarterly instalments can also save money.
Even small adjustments can mean savings of several hundred euros per year. These measures help to significantly reduce the financial burden of the first car insurance policy.
Expert knowledge for novice drivers: mastering no-claims class transfers and special classifications
In addition to the tips already mentioned, there are advanced strategies for cost optimisation. One option is to take over no-claims bonus classes from relatives, for example from grandparents, when they deregister their vehicle. However, you can only take over as many claim-free years as you have held your driving licence yourself. Under certain conditions, some insurers offer special classifications that are better than the usual SF class 0 for new drivers. This may be the case, for example, if your partner already has a policy with the same insurer and a good SF class. Our expert tip: proactively ask insurers about such individual arrangements. In the long term, it is important to know that your insurance premium improves with each accident-free year and as you move up to a higher SF class; patience and safe driving therefore pay off twice over. Knowing about these options makes it possible to reduce your insurance burden even more precisely.
Long-term perspective: premium development and smart contract adjustments
The cost of car insurance is often a challenge for new drivers at first, but it does not stay that high permanently. With each year of accident-free driving, you move up to a better no-claims bonus class (SF class), which leads to a significant reduction in your premiums. After three years of driving experience, many insurers already classify young drivers more favourably. It is advisable to review your cover regularly and adapt it to your current personal circumstances. If, for example, your annual mileage or the list of drivers changes, this should be reported to the insurer in order to potentially save on premiums or avoid underinsurance. Compare tariffs regularly, especially after a few years of driving experience. Changing provider or tariff can then bring significant savings, as your risk rating has improved. This way, you secure favourable terms in the long term.
As a digital insurance portal, our mission at nextsure is to offer you comprehensive and bespoke protection solutions. We understand that the subject of motor insurance can be complex, especially for new drivers. That is why we support you with expert advice and fully digitalised application processes to find the optimal and most cost-effective insurance solution for you. We help you avoid the pitfalls and make the most of every potential saving. Rely on our expertise in the insurance sector.
Request an individual risk analysis now: have your insurance situation reviewed free of charge and receive specific suggestions for optimisation.
More useful links
Wikipedia provides information on insurance type classes in Germany.
The Federal Statistical Office (Destatis) provides statistics on road traffic accidents involving 18- to 24-year-olds in Germany.
The insurers (GDV) offer a vehicle insurance type class search.
The GDV explains the type classes for motor insurance briefly and succinctly.
The German Road Safety Council (DVR) devotes a topic page to young drivers.
The Insurance Association Accident Research (UDV) offers a study on accident risk and preventive 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 new drivers.
FAQ
Which insurance is mandatory for new drivers?
Motor vehicle liability insurance is legally required in Germany for every vehicle owner, including new drivers. It covers damage you cause to others in road traffic.
Is comprehensive car insurance worth it for the first car?
Comprehensive car insurance is particularly worthwhile for new drivers with new cars or very high-value used cars, as it also covers damage to your own car caused by yourself and vandalism. For older cars with a low value, partial cover or just third-party liability may be sufficient.
What does the no-claims bonus class SF 0 mean?
SF class 0 is the usual classification for new drivers with no prior driving experience or transferable no-claims years. It is the most expensive class, with premium rates that often exceed one hundred per cent of the base premium.
Can I take over my parents’ no-claims bonus?
Yes, under certain conditions, new drivers can transfer the no-claims bonus class (SF class) from close relatives such as parents or grandparents, usually when they deregister their vehicle. However, you can only be credited with as many claim-free years as you have held a driving licence yourself.
Does annual mileage affect insurance costs for beginners?
Yes, the estimated annual mileage is a factor in calculating premiums. Low-mileage drivers usually pay lower premiums, as a lower risk of accidents is assumed.
What is a telematics tariff and is it a good idea for new drivers?
In a telematics insurance policy, driving behaviour (e.g. speed, braking behaviour) is recorded via an app or a device fitted in the car. With safe driving, discounts of up to thirty per cent can be granted, which makes it particularly attractive for cost-conscious new drivers.
