If you're after something cheap to insure but don't want a city car, we'd suggest sticking to a small hatchback such as a Ford Fiesta. In terms of depreciation, on cars at this price it's not really a big problem as most small cars will lose money at the same rate. What will help preserve its value is low mileage, not modifying it and taking care of the car during the time you own it.

In the classifieds we've seen some tidy Ford Fiestas, SEAT Ibizas and Volkswagen Polos - all reliable and cheap to run. Try and look for smaller engines models such as 1.0 and 1.2. They may not be especially quick but will be cheaper to insure, and will help you build up your no-claims.