New cars are actually cheaper for young drivers to insure than old bangers, insurance broker Be Wiser has claimed.

Figures from the company reveal that the cheapest car for youngsters to insure at the moment is a Volkswagen Up, which costs around £3,000 per year based on a 17-year-old driver in a large city.

The same customer 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 insurance 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 older ones.”

The broker also advises newly qualified drivers to stick 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 fraud if you’re saying you’re not the main user when really you are,” warns Stuart. "If the insurance company discovers they have been lied to or misled they can refuse to deal with any claim.”