Very nearly bought a TVR T350, but looked at pretty much everything... but couldnt justify it with my current employment situation! The Clio just does so many things very well
If he wont take a saxo, look for a xsara vts, pretty much a 306 gti6 but with a 5speed box and a lil lighter. Very underated cars and ull pick one up for peanus!
I think the legal protection applies if you have other people in the car with you, then they will sort their legal issues too... but its better asking the insurer.
Id also lower the excess.... unless you wouldnt miss £400 if the worst did happen.