You're gonna pay significantly less to be a named driver on your dad's policy, i'd do that for a couple of years. It means you don't build up no claims though, so you have to calculate whats most cost effective.
Suspension wise, you have to decide what you really want & can afford. You have 3 options:
1. Lowering Springs - If you put a set of springs on your existing dampers you will finish them off fairly quickly. By putting lower stiffer springs on tired old dampers you make them work even harder and they generally give up the ghost pretty quick, especially the fronts.
2. Spring & Damper Kit - subtle lowering and improved ride over the standard setup. Firm enought to make it more fun, but also not so firm that driving to the shops is annoying.
3. Coilover kit - Coilovers are designed for track cars, and the ride is very hard. Some people like them on the road, but i don't personally - they can make the car too bumpy as our roads have too many potholes, dips, cracks etc. for coilovers to work properly on.
BUT if low-ness is the most important thing, over 60mm anyway, then coilovers are your only option.
i have a 97 mk3 16v and i've just put on a koni sport kit (£350 delivered from awesomeGTi) - 40mm drop, and adjustable dampers. I fitted it myself. I took photo's so i might do a suspension DIY write-up.