When I lived in the UK, and drove around in 10-15 year old hot hatches, I generally expected to spend nearly the same annually on insurance as I purchased the car for...
UK depritiation is much, much higher than here, but I was spending about GBP 1,000 (AUD 2,500) on the car plus GBP 800 (AUD 2,000) for the third party fire and theft insurance.
My last car in the UK, before migrating to OZ was a GBP 300 Citroen BX GTi with ABS, alloys, power everything. Cost me GBP 700 to insure it, but it was quick and economical. Sold the door mirror for GBP 50 to the guy who used to service it, and let him keep the rest of the car when I left...