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Youngsters looking to insure their first car may think an older car is the cheapest option but latest figures reveal that a 20-year-old car could cost £1,000 more a year to insure than a brand new supermini.

Figures from leading broker Be Wiser Insurance reveal that the cheapest car for youngsters to insure at the moment is a one litre Volkswagen Up! with the car insurance costing around £3,000 a year for a 17-year-old in an average UK city.

The same driver looking to insure a 20-year-old Ford Fiesta would be facing a bill of almost £4,000 with insurance premiums even higher in some parts of the country.

Stuart Jenkinson from Be Wiser said the figures show that new cars are generally the most cost effective for young, new drivers.

“New cars are likely to attract lower premiums for a number of reasons, such as better security and safety systems which reduce the chances of theft or injury in the event of an incident," says Stuart. “Insurers also base their prices on how cars are driven and new cars are generally driven less aggressively than an older one.”

Be Wiser also advises newly qualified drivers to keep to cars in the lower insurance brackets and warns teenagers not to be tempted to put a parent down as the main driver on their car – a practice known as fronting.

“It’s tantamount to fraud if you’re saying you’re not the main user when really you are,” says Stuart. "If the insurance company discovers they have been lied to or misled they can refuse to deal with any claim.”

Stuart said there are a number of measures youngsters can take to keep the costs low for teenagers who put looks and performance ahead of insurance premiums: “Keep the car free from modifications and consider adding a more experienced driver to the policy which may help reduce the premium and volunteer to accept additional excesses.”

 Top Tips for cheap car insurance for teenagers

• Look at buying a new car over an old car
• Smaller engine size is generally best – 1 litre rather than a 1.2 or 1.4
• Don’t front your car insurance
• Check the rating of the car’s insurance group before you buy it
• Keep it stored in a garage or off the road
• Don’t adorn the car with unnecessary bodywork and modifications
• Consider putting a more experienced driver on the insurance
• Look at accepting higher excesses
• Consider taking a Pass Plus Advance driving course