After having shopped around for cars and insurance when my 20 year old son passed his driving test I found the following...
1. £1000 to buy a 15 year old Corsa or Clio, insurance around £3000 p.a.
2. £3000 to buy an 8 year old Jazz, insurance around £1000 p.a.
Seems that insurers believe that no-one wants to nick a Jazz, and any young person wanting a Jazz is inherently a sensible driver. In my experience, that turns out to be true.
I thought it was better value to have a newer (and better) car (albeit depreciating), than throw all our money at insurance.
We went with Admiral Multi-Car cover for my Jazz Mk2 (now an H-RV) and his Jazz Mk1.
Now entering the third renewal (fourth year) with them, and having shopped around, I still find them great value, considering all the cover (including business use for both of us) and his element has come down to £450 p.a.
Of course we have had no claims and he is now 23, but I think you would agree that's a massive reduction for him as he has had his own No Claims building up for three years now.
Having said all of that, I think I will get a quote from Adrian Flux as it is always worth getting a comparison.