I’m in exactly the same situation with my eldest (first lesson tomorrow).
We’ve nailed it down to:
Fiat 500 (probs too small)
VW Up! (good but she’s not blown away by the looks)
Polo 1.2 (good on a number of fronts and will officially seat 5)
[curve ball] Alfa Romeo Mito (1.0, looks good but a bit over our budget and I’m not sure about the dealer network).
The insurance for all the above came in at £900-£1000 with daughter as the main driver and parents as named drivers.
Whatever we get needs to last as our other two daughters start driving in 2 years so we’re looking at 2010MY and newer with a budget of about £3500.
And before anyone bleats on about kids being spoilt, blah, blah, we live in the sticks and need a car to get nearly anywhere. We have two cars already, one she cannot drive for a long, long time and the Golf which my wife will be taking into her new job 5 days a week. We’re offsetting the insurance against the £800 it currently costs us for our daughter to get the bus to school.