There are few moments in life that are more exciting than getting behind the wheel for the first time. For young drivers, getting their license is a huge milestone that opens the door to a whole new level of freedom. However, for parents, the experience can be a little bit more stressful. When choosing a car for a young driver, it’s important to consider vehicles that are not only affordable, but also highly rated in reliability and safety.
Whether you’re a parent or first-time driver, we’ve compiled this list of some of the best cars for young drivers under $30,000. But first, let’s review a few things to consider before purchasing a car.
Should My First Car Be New or Used?
One of the first decisions you’ll have to make when purchasing a car for a young driver will be choosing between new or used models. Although new cars may have the latest features and are less likely to have mechanical issues, they do come with a higher price tag. Here are some key points to consider:
Pros of Purchasing a New Car
- Latest features: As a young driver, having a car with modern safety and technology features can make for a safer driving experience.
- Reliability: Newer cars typically come with warranties and are less likely to have mechanical issues shortly after purchase.
- Customization: You’ll have more options regarding customization if you purchase a new car.
Pros of Purchasing a Used Car
- Affordability: In most cases, a used car will be cheaper than a new model.
- Variety: You can find a wide range of models that fit within your budget.
- Lower insurance costs: Insurance for teen drivers is expensive. A used car can help reduce these costs more than a brand-new car.
Cons of Purchasing a New Car:
- Depreciation: New cars are significantly more expensive and depreciate quickly.
- Insurance costs: A brand-new car will typically be more expensive to insure than an older model.
Cons of Purchasing a Used Car
- Potential repair costs: A used car can have hidden mechanical issues that could be expensive to repair.
- Limited warranty: A used car will likely no longer have any manufacturer or dealership warranties.
How Much Does It Cost to Add a Young Driver to My Insurance Policy?
Unfortunately for parents, adding a young driver to the family’s insurance policy can be expensive due to the higher risk associated with new drivers. In fact, teen drivers have crash rates nearly four times those of drivers 20 and older per mile driven, according to the Insurance Institute for Highway Safety (IIHS). This makes vehicle accidents one of the leading causes of teenage deaths.
Although adding a young or teen driver to the family policy will cause your rate to increase, doing so is often less expensive than purchasing a stand-alone policy. Additionally, there are a few potential benefits to adding a young driver to your policy, such as:
- Qualifying for a multi-vehicle discount
- Convenient and simplified policy management
- Potential for additional discounts, such as a student away from home or good student discount
- Ensuring they’re covered to drive any other household vehicles
The Best New Cars for Young Drivers
Each year, the Insurance Institute for Highway Safety (IIHS) compiles a “Top Safety Picks” showcasing the vehicles that best meet their safety standards. For the 2025 list, the IIHS also began considering rear-seat passenger safety as a rating metric. Here is a quick overview of the Top Safety Picks and what makes them so great.
1) 2025 Honda Civic Sedan
Starting MSRP: $24,250
The Honda Civic has long been considered a reliable first car. Currently in its 11th generation, the 2025 Honda Civic is available in both a sedan and a five-door hatchback. Both models are considered a Top Safety Pick by the IIHS.
What makes the Civic a good choice for young drivers is that its base model comes with a full suite of features other companies typically reserve for higher trim models, such as adaptive cruise control and auto emergency braking. Combined with its 38-highway mpg, these features make the Honda Civic a great choice for young drivers with the budget for a new car.
2) 2025 Mazda3
Starting MSRP: $24,150
Considered a Top Safety Pick+, the 2025 Mazda3 is an excellent choice for those looking for a reliable car that combines quality engineering with a sleek design. Designed for comfort and style, the 2025 Mazda3’s interior feels much more luxurious than its price tag may reflect. Similar to the Honda Civic, the Mazda3 is available in both a sedan and hatchback model.
3) 2025 Hyundai Kona
Starting MSRP: $24,550
If you’re looking for something with a little more room than a standard sedan, compact SUVs such as the Hyundai Kona are an excellent option. Featuring a brand new design, the Hyundai Kona base model comes equipped with plenty of features that are perfect for young drivers, such as lane-keeping assist, blind spot monitoring, and forward collision-avoidance assist making it a great deal for its price tag.
4) 2025 Toyota Corolla Hybrid
Starting MSRP: $23,825
If you want to spend more time on the road than at the pump, the 2025 Toyota Corolla Hybrid is an excellent option. Fully equipped with Toyota’s Safety Sense 3.0, the 2025 Corolla Hybrid is both safe and reliable. And with a combined fuel economy of 35 mpg, the Corolla can’t be beat for its sticker price.
The Best Used Cars for College Students Under $20,000
If a brand-new car is out of your budget, there are still plenty of used cars on the market that can be a smart purchase. To learn more about what you should consider before purchasing a used car, click here to visit our blog.
1) 2024 Kia Soul
Price Range: $14,000 to $19,000
If you’re looking for a lower cost option that still has modern features and plenty of space, the 2024 Kia Soul may be exactly what you’re looking for. Although it is compact in size, it’s boxy design gives it plenty of interior space and makes it easy to find a place to park. Although it is less expensive than others on our list, the Kia Soul still comes with plenty of features to keep young drivers safe, such as automatic emergency braking and lane keeping assist.
2) 2023 Nissan Versa
Price Range: $12,000 to $16,000
The 2023 Nissan Versa is perfect for those looking for an affordable first car without sacrificing important features. Despite it’s small size, the Nissan Versa offers plenty of interior space and can fit up to 5 passengers. Moreover, it’s compact design allows it to be fuel efficient whether you’re commuting to school or to run a few errands. Plus, every trim of the Versa comes with Nissan’s Safety Shield 360 suite, which will help keep young drivers safe on the road.
3) 2016-2018 Subaru Crosstrek
Price Range: $9,000 to $18,000
The 2016-2018 Subaru Crosstrek model won a 5-star safety rating from the National Highway Traffic Safety Administration (NHTSA). Although these vehicles are a bit older, that doesn’t mean that they aren’t a good choice for a young driver’s first car. Famous for its standard all-wheel drive, the Crosstrek can be a reliable option in multiple weather conditions.
4) 2017 Toyota Rav4
Price Range: $12,000 to $17,000
The 2017 Toyota Rav4 was a Top Safety Pick+ from the IIHS, making this used car a reliable, safe option for young drivers. Every trim level is equipped with Toyota Safety Sense, which includes lane departure warning, steering assist, and adaptive cruise control. And with it’s SUV-like build, the RAV4 offers plenty of interior space and ground clearance perfect for weekend adventures.
Don’t Forget About Car Insurance
Before purchasing a first car, it’s important to compare car insurance quotes ahead of time to understand the total cost of ownership. At AIS, we make it easy to compare quotes from multiple insurance providers in just a few simple clicks. Whether you’re a parent searching for a car for your young driver or a first-time driver, our specialists can help you navigate the market to find you a policy that fits your budget and needs. To get covered, start a free quote online or call us at (888) 772-4247.
The information in this article is obtained from various sources and is offered for educational purposes. Furthermore, it should not replace manuals or instructions provided by the manufacturer or the advice of a qualified professional. No warranty or appropriateness for a specific purpose is expressed or implied.
