I see you live in london..... that could be half your problem as insurance play the post code lottery unfortunately!!
have you looked at impreza RX hatchback ( non turbo ) and is fairly cheap to insure but then again i live in a fairly decent area
just to put things in context, when I started driving nearly 6years ago I brought a 1,3 starlet na and paid £2800 year!!! and things have only got worse for new drivers :(
James