The Top 10 cheapest cars to insure in the UK!

Some cars are cheaper to insure than others – and it’s all a question of risk. This means that the lower the risk of your vehicle getting into an accident or being stolen, the less you’ll pay for car insurance. Auto insurers use a range of factors to determine your risk and your choice of vehicle often plays a huge role in determining how much your premiums will cost.

In this article, Insurance Business lists the cheapest cars to insure in the UK based on vehicle type. We will also discuss insurance groups – an often-overlooked detail that can have a major impact on your insurance costs – and the other factors that dictate car premiums. Read on and find out which car models come cheap when taking out insurance.

What are the cheapest cars to insure in the UK?

Every vehicle on sale in the country is categorised into a car insurance group, which guides insurers in determining how much premiums they will charge. These groups are numbered from one to 50. We will discuss car insurance groups in detail later. 

Vehicles that fall in insurance groups one to 10 come with the lowest premiums as these are typically low-spec models that are easy and less costly to repair with smaller engines. Here are the cheapest cars to insure in the UK based on these groupings. This list is arranged alphabetically.

1. Citroën C1

The Citroën C1 is affordable to buy and own, making it a popular city car for new drivers and a second vehicle for families. It is powered by a three-cylinder 1.0-litre petrol engine good for driving around town. Some features include a touchscreen stereo system, reversing camera, air-conditioning, and electric windows.

2. Fiat Panda

The Fiat Panda is an SUV-looking hatchback available as a hybrid and 4x4. Just like other Fiat models, the Panda carries a certain charm. Although not that spacious, it comes with five doors and roof bars. On the downside, the Fiat Panda is the only car with a zero-star safety rating from Euro NCAP, so that’s something to consider, especially if you’re looking for a ride to throw around corners.

3. Hyundai i10

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The Hyundai i10 is a stylish hatchback with all standard equipment – air-conditioning, electric window, etc. – even on the entry-level SE model. It provides sufficient room for four adults and a boot that can fit a pair of large suitcases. Its small size also makes driving and parking easy, although the models in the lowest insurance groups are those powered by a 67hp engine.

4. Kia Rio

The Kia Rio is another affordable option if you are looking for the cheapest cars to insure in the UK. Still, it has modern features like Bluetooth and air-conditioning. Some mid-spec units come with a touchscreen infotainment system. Models with 84hp 1.2-litre engines come with the lowest premiums.

5. Nissan Micra

The Nissan Micra is a safe and reliable hatchback that offers a spacious and comfortable cabin for driving. It has a neat looking interior with an infotainment screen and intuitive knobs to control the vents and stereo. The cheapest car to insure is the 70hp 1.0-litre model, which is no longer being manufactured, although you can still access low premiums by picking the models listed above.

6. Škoda CitiGo

The Škoda CitiGo’s diminutive exterior hides its interior’s light airiness. The CitiGo can easily fit four adults and comes with a spacious boot. It is also not as slow as some of the other models in the list, which means it can be used for ducking in and out of city streets. The CitiGo is quiet and comfortable to drive even on faster roads.

7. Toyota Aygo

Although no longer in production, the Toyota Aygo is among the cheapest cars to insure in the UK. It runs on a three-cylinder engine and has a spacious interior with modern touches like a 12V socket for charging your smartphone. You can also buy the Aygo for less than £1,000, a relatively cheap price considering the features.

8. Vauxhall Corsa

The Vauxhall Corsa has become a favourite among driving instructors and car rental companies, as well as new drivers, thanks to its fuel-efficiency and cheap maintenance and repair costs. A popular family car, the Corsa is likewise considered one of the safest vehicles in the country, recording high marks in the Euro NCAP. Style-wise, Vauxhall Corsa carries that sporty look because of its standard body stripes and 16-inch alloy wheels.

9. Volkswagen Polo

The Volkswagen Polo is a small hatchback with a distinct big-car feel. It has enough room for four adults and a boot that can store two large suitcases. Motorists also love that the car is easy-to-drive, comfortable, quiet, and has a pliable ride quality. The only drawback is that the models that qualify for cheap car insurance are those with 1.0-litre engines, which can be a bit underpowered. 

10. Volkswagen Up

The Volkswagen Up has been around a while yet is still at the top of its game. Its interior carries a simple appearance but has all the standard features, including air-conditioning, DAB radio, and Bluetooth. The VW Up is also roomy, with a boot that can fit four soft bags. It is powered by a 60PS engine that cruises relatively quietly.

How much does car insurance cost in the UK?

Average annual car insurance premiums in the UK are now at £629, according to the latest Car Insurance Price Index. This figure represents a 19% rise from 2022 and is equivalent to a £100 year-on-year increase.

You can find more details on the current state of car insurance premiums in the UK, including the regions with the highest rates, in this Insurance Business report.

What factors impact car insurance premiums in the UK?

One of the biggest factors that influence car insurance premiums in the UK is the vehicle’s car insurance group. The cheapest cars to insure in the UK are those found in groups one through 10 as these often have lower repair costs and several safety features. Vehicles in groups 11 to 20 have slightly higher rates, but at a level that industry insiders say is still affordable.

Cars in insurance groups 21 to 30 get middle-of-the-pack rates, while those in insurance groups 31 to 40 have the second-most expensive coverage costs as most of these cars are “performance-focused with high speed and power.” Sports and luxury vehicles are examples.

Vehicles in insurance groups 41 to 50 have the highest premiums. This group includes some of the most luxurious and powerful cars such as Jaguars, Bentleys and Porsches.

If you want to learn more about this often-overlooked detail in car insurance, you can check out our comprehensive guide on car insurance groups in the UK. 

Your car’s insurance group, however, is not the only factor that insurers consider when calculating premiums. Other parameters that auto insurance companies also take into account are:

• Age: Young and inexperienced drivers are often considered riskier to insure and get higher premiums than their older counterparts.
• Gender: Male drivers are statistically more likely to get involved in accidents than their female counterparts, increasing the premiums they need to pay.
• Location: If you live in a safe area, you will likely pay cheaper car insurance than those who reside in areas where accidents and car theft are common.
• Driving record and claims history: Drivers with a clean driving and claims history are often rewarded with cheaper premiums and discounts from their insurance providers.
• Level of coverage: Your choice of policy also determines how much you will pay for car insurance.
• Occupation: Some occupations present a higher risk for auto insurers, driving up their insurance rates. Find out which jobs in the UK have the most and least expensive premiums in this article.
• Vehicle’s market value: Your car’s age, model, trim, condition, and distance travelled also influence the amount you pay for premiums.
• Add-ons: Adding optional extras such as roadside assistance, widescreen excess, and rental car cover can increase your premiums. These coverages, however, are already included in some comprehensive policies.

Ever wondered how insurers calculate premiums for different types of policies? Wonder no more as our complete primer on insurance premiums gives you all the answers.

What are the cheapest cars to insure for a new driver in the UK?

The cheapest cars to insure in the UK are not necessarily the least expensive for the country’s young drivers. These vehicles, however, do not always lag in performance and can allow new motorists to save hundreds of pounds in premiums. The five least expensive cars to insure for UK’s new drivers, based on our latest rankings, are:

You can check out our complete rankings of the cheapest cars to insure for young drivers in the UK here.

At what age does car insurance get cheaper?

Car insurance premiums tend to decrease significantly between the ages of 19 and 34. Average rates then begin to stabilize, with slight reductions between 34 and 75-years old, after which premiums start to rise again as drivers reach a more senior age. The reason why young drivers pay the highest premiums is that age correlates with driving experience and the risk of getting involved in an accident.

Are automatic cars more expensive to insure?

Automatic cars are often more costly to insure compared to their manual counterparts because of several key elements. These include:

• Car price: Automatic vehicles are usually more expensive to buy, which also means higher repair and replacement costs. These drive up premiums.
• Complex gearboxes: Automatic cars have gearboxes that use more sophisticated technology compared to those in manual units. These parts are an additional cost that insurers must cover.
• Licence type: Drivers who have licences that only allow them to drive automatic vehicles may be charged with higher premiums as statistically, they often file for a higher number of car insurance claims.

Learn more about this topic by checking out our automatic vs manual car insurance comparison, which explains why automatic vehicles are more expensive to insure.

Are new cars cheaper to insure than old cars?

The common assumption is that older or used cars have cheaper insurance because they are worth less. But this is not always the case. An old high-end luxury car such as the Porsche 911, for instance, is likely more expensive to insure than brand-new versions of popular hatchbacks Volkswagen Golf and Ford Focus.

Most new car models also have the latest safety and security features lacking in older units – including anti-lock brakes, adaptive cruise control, alarms, rearview cameras, traction control, tyre pressure monitors, and immobilisers – which can reduce premiums.

But because brand-new vehicles often adopt the latest technology, they may also entail higher repair and replacement costs. Having advanced features can also make cars more attractive to thieves. These factors can push up insurance rates.

If you want to learn practical tips on how to lower your insurance premiums, you can out our handy guide to affordable car insurance in the UK.

Do you have experience in driving the cheapest cars to insure in the UK? How was it? Feel free to share your story in the comment section below.