The cheapest cars to insure in the UK

When you’re thinking about buying a new car, how much it’ll cost to insure should play a part in your final decision. Since each vehicle belongs to its own insurance group, the car insurance quotes you can get for different vehicles can vary wildly. And this can sometimes make what looks like a good deal a lot more expensive.

That’s why we’ve compiled a list of the top 10 cheapest cars to insure in the UK, to help you find a solid motor that won’t break the bank when you take out cover.

What makes a car cheap to insure?

Every car on the market is sorted into one of 50 insurance groups, as administered by the Association of British Insurers (ABI) Group Rating Panel. Group 1 cars are the cheapest to insure, while Group 50 vehicles are the most expensive. When deciding which group a car falls into, the ratings panel looks at the risks associated with:

• Cost of the repairs: the more expensive a car is to repair, the harder it is to find parts, and the longer it takes to fix, the higher the insurance group
• Cost of the car when new: the market value of a car when new is used to inform what insurance group it is in, as it is indicative of how expensive it will be to replace or repair
• Performance: this includes how fast it accelerates from 0 to 60, its top speed, and weight. The quicker a car is, the more likely it’ll be to fall into a higher insurance group
• Design: this includes safety and security features, such as the bumper, if it has automatic emergency braking (AEB), alarm systems, and door locks

So, as a general rule, the smaller a car’s engine, the lower its market value, the easier it is to fix, and the stronger its safety and security features, the cheaper it’ll be to insure.

However, the cost of your insurance isn’t just based on your vehicle. Alongside the car, providers will also focus on:

• Your driving history: this includes any penalty points and no-claims bonuses you’ve built up over the years
• Your age: normally, the younger you are, the more expensive your car insurance will be
• Your address: statistically, different areas of the country pose a higher claims risk to insurers than others. That’s why your location can affect the cost of your car insurance
• Your occupation: if you have a job that is seen as high stress, or involves a lot of driving, you may find your car insurance premium is more expensive

Top 10 cheapest cars to insure in the UK

Based on the findings of WhatCar.com, here are the 10 cheapest cars to insure in the UK. 

Price data has been taken from Motors.co.uk.

1. Volkswagen Up!

Perfect for zipping around town, the Volkswagen Up! is a great option for new and young drivers looking to drive short distances. One caveat is that production of new cars ended in 2023, meaning soon you will only be able to buy one second hand. 

2. Hyundai i10

Small and efficient, the Hyundai i10 Advance is another great option if you are shopping for your first car. According to WhatCar, it has the same average insurance premium as the Volkswagen Up!, but is a little more expensive to purchase.

3. Kia Picanto

With car insurance quotes based on the 2 trim version, the Kia Picanto is a smart, zippy city car that is perfectly suited to shorter outings. According to Motor.co.uk, the average price to pick one up is also the right side of £10,000.

4. Volkswagen Polo

Volkswagen’s second appearance in the top 10, the Polo is also the first car on this list to have a five-star safety rating from the Euro New Car Assessment Programme (NCAP). 

5. Skoda Fabia

Once the target of much derision, Skoda has had the last laugh with its Fabia, selling more than 4.5 million units of its flagship small car.

6. Toyota Aygo X

Strong safety features, including automatic emergency braking and traffic sign recognition, help place the Toyota Aygo X in the top 10 cheapest cars to insure.

7. Ford Fiesta

One of the most popular cars in the UK of all time, production of the Ford Fiesta actually ended in the middle of 2023. That hasn’t stopped it from taking a place on this list, however. 

8. MG3

A step up in brake horsepower, the MG3 is the first car on this list to cross 100bhp. So if you want a more powerful engine, but without breaking the bank insurance wise, this could be a good fit.

It’s important to note, however, that the car’s Euro NCAP rating has expired. And the fact it got a three-star rating when the test was more forgiving is potentially cause for concern. 

9. Renault Captur

One of the original small SUVs on the market, the Renault Captur is a 4×4 for the city, with a five-star safety rating from Euro NCAP.

10. Fiat Panda

While it may make the top 10, the biggest thing to note about the Fiat Panda is that it has a shocking zero-star Euro NCAP rating, hence the “U” designation in its insurance group; the ABI finds the car’s safety features – or lack thereof – “unacceptable”. 

How to research the cheapest cars to insure

Of course, there’s a balance to be struck between finding the cheapest car to insure, and finding the right vehicle for your needs. You should also pay attention to:

• Suitability: first and foremost, you should look to buy a car that suits your driving habits. For example, if you have a family, you’ll have different needs to those without kids
• Cost: not every car that is cheap to insure is going to be cheap to buy, regardless of whether it’s used or brand new
• Tax: on top of car insurance, you’ll need to pay the Vehicle Excise Duty (VED). The amount of tax you pay can vary greatly from vehicle to vehicle, so it is a good idea to look it up beforehand
• Safety: as seen in the top 10 above, some cheap to insure cars have terrible Euro NCAP safety ratings. So don’t just be pulled in by a less expensive premium
• Fuel type: electric, petrol and diesel cars all have their own benefits and drawbacks, including how much it costs to keep your car running
• Fuel consumption: how much fuel you vehicle guzzles can greatly add to the overall price of your car