New drivers — things to consider for your first car

If you’ve just passed your driving test and are on the lookout for a new car, the number of options can leave you feeling overwhelmed. With advice on what to consider and how to make sure you get a car that suits you, your lifestyle and your budget, here’s mustard.co.uk.

Type of car

This might sound obvious but it’s easy to get carried away and overlook what you actually need in a car. To make sure you end up with a car that actually fits your needs, consider:

The journeys you’ll be making and the number of miles you’ll be covering
The types of roads you’ll mainly be driving on
Practicalities like number of doors, seats and boot space
The type of features you specifically want, for instance, sat nav or air conditioning

Clearly defining your needs can help you distinguish between what you actually need, and what’s nice to have. After all, if you only drive around town and never venture onto a motorway or go off road, it’s unlikely you’ll need a 4x4 with a 3 litre engine.

Insurance group

All cars made for the UK market belong to one of 50 insurance groups based on factors such as value, performance, safety and security, cost of parts and labour.

The lower the group number, the lower your insurance premium is likely to be. So when you’ve got a rough idea of the type of car you want, you can use insurance groups to help you narrow down your options. Doing this means you can filter out cars in higher groups that cost more to insure.

It’s little surprise that some of the most popular cars for new drivers are those that are in low insurance groups. In most cases, they’re small, easy to manoeuvre and park while parts and repair costs are relatively affordable, for example the:

Volkswagen Up
Volkswagen Polo
Kia Picanto
Ford Fiesta
Fiat 500

Running costs

Ongoing running costs will be a hugely important factor to consider. As well as fuel and an annual MOT once your car is three years old, you’ll need to budget for servicing too.

If you’re buying brand new, cars will come with a warranty. These generally last for three years although some manufacturers (like Kia) offer a seven year warranty which can give you much needed peace of mind as a first-time car buyer and owner.

You’ll still get a warranty on a nearly new or used car but these will typically be for 12-months. But don’t let the reduced warranty period put you off as the used car market will have some hidden gems and you’re more likely to pick up a bargain.

All types of car insurance

It’s a long-held myth that third party insurance (the lowest level of cover) is always the cheapest type of insurance. While this might have been true in the past, it’s simply not the case now. This is because insurers realised that the claims from third party policyholders were generally greater than those with comprehensive cover (the highest level of insurance available). Since then, premiums for third party policies have been adjusted to reflect the higher cost of claims.

That said, premiums are calculated based on a range of factors so some drivers will find that third party cover is the most cost effective option for them. The point is that it’s crucial to compare all types of policy in order to get the best value for money.

Remember that cheaper policies might seem like a bargain, but look at what they include. You may end up adding on optional extras which significantly increases what you pay, for example: legal expenses, breakdown cover and windscreen cover. On the other hand, more expensive policies may already include all the features you want and be an all round better deal.

Shop around and compare to save money on your car insurance

Shopping around is one of the quickest ways to ensure you get the cover you need without paying over the odds for it. At comparison sites like mustard.co.uk, you can compare dozens of leading car insurers. To see at a glance who’s offering what, you can start your search with them right here.