I own a Starlet (albeit an EP91), and looking at it from a completely objective, bias free viewpoint? It's okay. That's it. Not too shabby, but not gonna set the world on fire either. Then again, its your first car - it should never be either of those things anyway. I'm impressed that you managed to find an UK-model EP82 in the first place, let alone one in such good condition and that cheap!
They aren't bad first cars, but they cost a tad more to insure than you'd expect due to them being a bit older (which to the insurance firms translate as being easier to steal), and parts seem to be quite thin on the ground for them. However, mine is 17 years old, had literally no maintenance done to it when I bought it, and ran fine. Ran even better after I gave it a basic service and has remained trouble free since. How you got your insurance quote that low is beyond me. I had £1,700 down as the lowest quote for an EP82.
A first gen Yaris is probably the better bet if you're gonna go with a Toyota. Newer, more parts out there, looks more modern (but that's subjective), safer, more of them to choose from, better for emissions, better for fuel and has more tech on board i.e. average MPG, trip computer, etc. Starlets literally only have an oil temperature gauge and a tachometer - even then, that was only available as an optional extra. If you're gonna look at a Yaris, try looking at an SR. Came with alloy wheels, sporty bodykit, lowered from factory (not sure on that point however) most of the mod cons as standard, but they're still only a 1.3, so they aren't that much to insure either.
Unlike America, older Civics (EG and EK models) are quite poor as first cars. They only seem to come with 1.5 engines as the smallest, and were stupidly easy to steal in the 90s, meaning the insurance on 'em these days is out of this world. And of course, they came out at the time Max Power started becoming big, so most got filled with terrible boot speakers and crappy body kits, and the insurance premiums still haven't fully recovered.
The Cappuccino was probably so high because they were only in this country through grey imports IIRC, as well being classed as a 'sports car'. That has a massive effect since - you guessed it - they think imported cars are a bigger target for thieves.
Cobra has the right idea to be fair. Just put in cars that you like, see what the outcome is on a quote and you may be surprised. A friend of mine who's just turned 17 is about to be insured on a 70s Beetle for just £700 a year. How? I don't know, but it goes to show that you don't necessarily need a little hatchback. That said, you might be able to buy and insure a car, but that doesn't always mean you can afford to get stuff fixed on it, keep that in mind.
