Top 20 cheapest cars to insure

Sky-high insurance bills can take the shine off selecting your next new car, so check out our list of the 20 best cars with the lowest annual insurance premiums...

Dacia Duster with Target Price logo

Insurance premiums in the UK are currently at their highest ever level, according to Association of British Insurers (ABI). So, to help you save money on your next new car, we’ve rounded up the cheapest cars to insure from the hundreds of new models on sale.

Finding the best car for insurance – especially with young drivers in mind – can be tricky, but your buying journey should start with finding out what the car insurance group of a potential purchase will be, because that will give you a good indication iof how pricey it will be to insure. 

All cars are assigned a group ranging from 1 to 50, taking into account the car’s price when new, what safety sytems are fitted and what security features it has, plus how susceptible it is to accident damage, how much it is likely to cost to repair and how long that work may take. 

In general, if you pick a car with a low insurance group number it should have pretty low premiums, while cars rated in the top 50 band will be the most costly to buy cover for. However, costs also vary among the different engine and trim options of specific models, so, from each range, we’ve picked the version with the lowest premiums overall. This list should, therefore, give you the best cars for insurance costs.

If you're a young driver, you'll find that your car insurance can be more expensive than most – that's because young drivers, and especially young male drivers, are involved in the majority of accidents. However, there are ways you can keep your insurance premiums as low as possible, such as by taking out a black box telematics policy which rewards smooth driving.

To make all our quotes comparable, we’ve based each one on an advisory standard set by the ABI, which includes a 35-year-old male accountant who lives in Swindon who commutes in his car and parks off-street. He has a clean licence and full no-claims bonus.

Below we count down the 20 cheapest new cars to insure, revealing how much they will cost for our average driver. If you want to find out more about any of the cars listed below, simply click the links through to our full reviews or free New Car Buying service.

The cheapest cars to insure

=1. Volkswagen Up

Cost of insurance £285

Volkswagen Up front cornering

Version 1.0 Up! | List price £15,180 | Target Price £14,793 | Target PCP £192 | Insurance group 2E What Car? star rating 3

The Up is a former What Car? Car of the Year because it offers fun driving manners, plenty of standard equipment and classy interior. While newer rivals are better value and have newer technology, there’s still a lot to recommend with the Up. For a start, it’s one of an increasingly rare breed, because some manufacturers are stopping production of their small cars. Indeed, that's now the case with the Up as of October 2023 (although plenty of new models are still available from dealer stock). The entry level Up is the cheapest to insure. It comes with manual air-con and electric windows, but you’ll have to step up to Beats trim if you want a multifunction steering wheel and an upgraded stereo system.

For Fun to drive | Economical engine | Classy interior for the money

Against Limited safety technology | Some rivals are better value | Harsh ride on larger wheels

Read our full Volkswagen Up review or see new Volkswagen Up deals >>

=1. Hyundai i10

Cost of insurance £285

Hyundai i10 front cornering

Version 1.0 Advance | List price £15,420 | Target Price £14,915 | Target PCP £202 | Insurance group 2E What Car? star rating 4

If you're looking for a small car that offers cultured motoring on a sensible budget, check out the Hyundai i10. It's relatively spacious, comes with a smart-looking interior, a great infotainment system and it rides and drives more impressively than plenty of bigger, pricier cars. Our insurance premium is for the three-cylinder 1.0 petrol engine, which is man enough to deal with most driving situations, although it may seem a bit wheezy at motorway speeds. Entry-level Advance trim should satisfy the most basic needs, but you’ll need to move up to Premium trim to get niceties such as alloy wheels, heated seats and a heated steering wheel.

For Comfortable and quiet to drive | Decent rear seat space | Well equipped

Against Three-star Euro NCAP safety rating | Non-turbocharged 1.0-litre engine a bit lacklustre | Slow auto gearbox

Read our full Hyundai i10 review or see new Hyundai i10 deals >>

=3. Kia Picanto

Cost of insurance £291

Kia Picanto front cornering

Version 1.0 2 | List price £14,415 | Target Price £13,606 | Target PCP £161 | Insurance group 3A What Car? star rating 3

The Picanto is a fine small car with a smart interior and tidy handling. The 66bhp 1.0 petrol engine may not be the last word in outright pace, but it’s fine for pottering around town and doesn’t mind being revved hard, so it will make decent progress on faster roads as long as you’re prepared to work it. Our insurance quote is for the fairly affordable 2 trim level, which isn’t too stingy, but we’d recommend paying a bit extra to get a model with 3 trim because it adds climate and cruise control and a touchscreen infotainment system (with Apple CarPlay and Android Auto smartphone compatibility).

For Tidy handling | Frugal 1.0-litre MPi engine | Generous equipment on 3 trim

Against Slow 1.0-litre MPi engine | Firm(ish) low-speed ride | Dacia Sandero is more practical

Read our full Kia Picanto review or see new Kia Picanto deals >>

=3. Volkswagen Polo

Cost of insurance £291

Volkswagen Polo front cornering

Version 1.0 80 Life | List price £21,670 | Target Price £20,590 | Target PCP £217 | Insurance group 3E What Car? star rating 4

The Polo may have spent its life in the shadow of its highly-competent big brother, the Volkswagen Golf, but it shouldn’t be underestimated. Our insurance price is for the 1.0 petrol model in Life trim, but whichever version you go for you’ll get a car that’s good to drive, comfortable and smart and roomy inside. The fact that it’s likely to retain its value better than rivals simply adds to its appeal.

For Good to drive | Spacious interior | Attractive PCP finance deals

Against Ford Fiesta is more fun to drive | Gutless entry-level engine | Standard safety kit could be better

Read our full Volkswagen Polo review or see new Volkswagen Polo deals >>

5. Skoda Fabia

Cost of insurance £301

Skoda Fabia driving

Version 1.0 MPi 80 SE Comfort | List price £19,170 | Target Price £18,713 | Target PCP £225 | Insurance group 4E What Car? star rating 4

No wonder 4.5 million Fabias have hit the roads since it was originally launched in 1999. It’s affordable to buy, has a solid feel inside and out – and it's pretty cheap to insure. Our quote is for the lowest powered, non-turbo 1.0-litre petrol version. Its performance won’t set the world alight, but it’s worth seeking out if you want to keep costs down. In our chosen SE Comfort trim, it provides a decent amount of creature comforts, including air con, rear parking sensors and a colour touchscreen infotainment system.

For Big boot | Roomy interior with clever features | Supple ride

Against Interior is hardly plush | Buggy infotainment system | Honda Jazz is more practical

Read our full Skoda Fabia review or see new Skoda Fabia deals >>

6. Toyota Aygo X

Cost of insurance £319

Toyota Aygo X front cornering

Version 1.0 VVT-i Pure | List price £15,990 | Target Price £14,938 | Target PCP £162 | Insurance group 5A What Car? star rating 3

With its bold chunky styling, it can be easy to mistake the Aygo X for a small SUV rather than a small car. However, it technically falls into the latter camp in terms of its size, so it's much cheaper to buy, run and insure than an SUV. Indeed, the Aygo X is very cheap to run, and that's partly helped by its puny 71bhp 1.0-litre three-cylinder petrol engine. Okay, performance isn't a strong point (0-62mph takes 14.9sec), but it should be able to average more than 50mpg. The Aygo X also comes with plenty of safety kit as standard, including automatic emergency braking (AEB), lane-keeping assist and six airbags, which is something that can't be said for most small cars.

For Cheap to run | Good level of safety kit | 10-year warranty

Against Cramped in the back | Small boot opening | Lacklustre engine

Read our full Toyota Aygo X review or see new Toyota Aygo X deals >>

=7. Ford Fiesta

Cost of insurance £349

Ford Fiesta 2023 front

Version 1.1 Trend | List price £19,350 | Target Price £18,111 | Target PCP £196 | Insurance group 7E What Car? star rating 4

There are plenty of reasons why the Fiesta has been one of the UK’s best selling cars for more than a decade. It’s smart, well equipped – and it’s such good fun to drive that it’s guaranteed to put a smile on your face. The non-turbo 1.1-litre petrol engine that our insurance quote is based on isn’t as sprightly as the 1.0 mild hybrid turbo, but it’s well suited to urban life. The entry-level Trend trim is surprisingly comprehensive, and includes automatic lights, a 8.0in infotainment touchscreen and a heated windscreen as standard.

For Brilliant to drive | Punchy EcoBoost engines | Good fuel economy

Against Some rivals are better value | Decent but not class-leading practicality | Important safety kit not standard

Read our full Ford Fiesta review or see new Ford Fiesta deals >>

=7. MG3

Cost of insurance £349

MG3 2023 driving

Version 1.5 VTi-Tech Excite | List price £13,820 | Target Price £13,458 | Target PCP £182 | Insurance group 7E What Car? star rating 2

The MG 3 is one of the most affordable new small hatchbacks you can buy, undercutting most rivals, including the Ford Fiesta, Skoda Fabia and Volkswagen Polo. And the low purchase price helps to keep insurance costs down. There’s only one petrol engine choice, a 1.5; this sounds promising on paper, but it’s actually more sluggish than smaller turbocharged alternatives. It's also not that frugal – especially by modern standards.

For Attractively priced | Interior looks fairly smart | Well equipped

Against Bumpy ride | Unrefined engine | Disappointing safety

Read our full MG3 review or see new MG3 deals >>

=9. Renault Captur

​​Cost of insurance £367

Orange Renault Captur front right driving

Version 1.0 TCe 90 Evolution | List price £22,495 | Target Price £20,562 | Target PCP £224 | Insurance group 8E What Car? star rating 3

The Captur was one of the first small SUVs, and it’s the most affordable to insure, pitching in at a similar price to far smaller city cars. The second generation Captur, introduced in 2019, is roomier and plusher than the original, and it has lots of safety kit. There’s no need to splash out on a pricey trim because entry-level Evolution comes with cruise control, automatic lights and wipers and keyless entry.

For Keen starting price | Sliding rear seats come as standard | Good safety rating

Against Engines are relatively weak | Rivals have more rear seat space | PHEV is disappointing to drive

Read our full Renault Captur review or see new Renault Captur deals >>

=9. Fiat Panda

​​Cost of insurance £367

Fiat Panda 2022 front right tracking

Version 1.0 Mild Hybrid | List price £14,765 | Target Price £14,113 | Target PCP £190 | Insurance group 8U What Car? star rating 1

The Panda is outclassed by newer rivals, such as the Hyundai i10 and Kia Picanto, but some people will simply fall for its quirky looks. The fact that it’s fairly cheap to insure may also tempt you, but just make sure you test drive the alternatives before committing because it’s slow, not good to drive and poorly equipped. What's more, it has a terrible Euro NCAP safety score of zero stars out of five. 

For Individual looks | Decent headroom | Good rear visibility 

Against Abysmal Euro NCAP safety rating | Poor rear leg room | Slow and poor to drive

Read our full Fiat Panda review or see new Fiat Panda deals >>

=11. Hyundai i30 Tourer

​​Cost of insurance £385

Hyundai i30 Tourer 2022 front left tracking

Version 1.0T GDi SE Connect | List price £23,450 | Target Price £22,158 | Target PCP £276 | Insurance group 9E What Car? star rating 3

In times gone by, 1.0-litre engines were only reserved for the smallest of cars. Nowadays, you can find them in anything from the Skoda Karoq family SUV to this – the Hyundai i30 Tourer estate car. Mind you, that's certainly no bad thing, because the i30's turbocharged engine is impressively strong and efficient. It's also surprisingly well insulated, with little vibration or road noise seeping into the interior. Unfortunately, the i30 Tourer is remarkably bland to drive on the whole, with a surprising amount of body roll for a car with a firm suspension set-up.

For Refined engine | Decent boot | Simple but functional interior

Against Sedate performance | Less interior space than rivals | Bland handling

Read our full Hyundai i30 Tourer review or see new Hyundai i30 Tourer deals >>

=11. Kia Stonic

​​Cost of insurance £385

Kia Stonic front right driving

Version 1.0T GDi 99 2 | List price £21,225 | Target Price £19,958 | Target PCP £220 | Insurance group 9E What Car? star rating 3

The Stonic is essentially a Kia Rio on stilts. So, that means it's both compact and cheap to insure, while the driving position gives you a good view of the road. Being based on the Rio, the Stonic is offered with the same engine options. In this instance, the entry-level 99bhp 1.0-litre turbocharged unit is the cheapest to insure. It's a good choice if you're looking to keep the purchase cost down. Even though the mid-level 3 trim is our favourite, 2 comes with all the essentials (including cruise control and air conditioning). 

For Punchy turbo engine | Plenty of standard kit | Agile handling

Against Rivals have more flexible rear seats | Firm ride | Other small SUVs are more practical

Read our full Kia Stonic review or see new Kia Stonic deals >>

=11. Seat Arona

​​Cost of insurance £385

Seat Arona front cornering

Version 1.0 TSI 95 SE | List price £22,450 | Target Price £19,563 | Target PCP £242 | Insurance group 9E What Car? star rating 4

Looking for a small SUV that's fun to drive? Then how about a Seat Arona, which offers tidy handling, direct steering and punchy engines – all for a lot less money than a Ford Puma. Our insurance quote is for the entry-level 94bhp 1.0-litre engine, which provides a good amount of power so you can sit comfortably at motorway speeds. It does feel a bit sluggish at lower revs, though, so our favourite 108bhp is better option if you want a bit more power. SE trim is fairly well equipped, and includes 17in alloys, cruise control and a contrasting roof colour as standard. If your budget can stretch to it, we'd recommend going for SE Technology because of its better infotainment system and rear parking sensors.

For Tidy handling | Roomier than many rivals | Well equipped

Against So-so interior quality | Top trims are too pricey | Rivals have more flexible rear seats

Read our full Seat Arona review or see new Seat Arona deals >>

=11. Seat Ibiza

​​Cost of insurance £385

Seat Ibiza front cornering

Version 1.0 TSI 95 SE | List price £19,715 | Target Price £17,937 | Target PCP £218 | Insurance group 9E What Car? star rating 4

It may be similar under the skin to the Volkswagen Polo, but the Ibiza trumps it for driving enjoyment and value for money. Our insurance quote is for the 1.0 TSI 95, which is our favourite engine because of its punchy nature both around town and on the motorway. Sticking with the cheapest SE trim isn’t a bad option either, because it comes with automatic headlights, electrically adjusting door mirrors, metallic paint and a 6.5in infotainment system.

For Great to drive | Roomy by class standards | Strong TSI petrol engines

Against Lots of road noise | Resale values could be better | Firm ride in FR versions

Read our full Seat Ibiza review or see new Seat Ibiza deals >>

=11. Volkswagen T-Cross

​​Cost of insurance £385

Volkswagen T-Cross 2022 front cornering

Version 1.0 TSI 95 Black Edition | List price £23,905 | Target Price £22,992 | Target PCP £239 | Insurance group 9E What Car? star rating 4

The T-Cross is based on the Volkswagen T-Roc, but adds more flexible rear seating and a lower price tag. Indeed, that means that the interior doesn't feel quite as plush as the T-Roc's, while refinement isn't as good. On the plus side, you do get the same range of engines, and the T-Cross is generally very good to drive. It's comfortable and less fidgety than the Kia Stonic, for instance. Black Edition is the mid-level trim level, and is slightly cheaper to insure than the entry-level SE. It comes with black styling details, LED headlights and front sport seats as standard.

For Spacious, flexible interior | Impressive for safety | Good to drive

Against Only slightly cheaper than the superior T-Roc | Interior is hardly plush | SEL and R-Line trims too pricey

Read our full Volkswagen T-Cross review or see new Volkswagen T-Cross deals >>

=11. Volkswagen Caddy

​​Cost of insurance £385

VW Caddy 2022 front cornering

Version 1.5 TSI Caddy | List price £27,418 | Target Price £27,418 | Target PCP NA | Insurance group 9E What Car? star rating 3

Despite its van-like shape, the Volkswagen Caddy shares its underpinnings with the Volkswagen Golf. This means it offers car-like driving dynamics, with a supple ride and surprisingly tidy handling. Of course, being an MPV version of the Caddy van, the interior is absolutely vast. However, being based on a van means interior quality is pretty poor, with hard scratchy plastics being across the dashboard. And while it is quite cheap to insure, it is surprisingly expensive to buy,

For Five-star NCAP rating beats other MPVs | Pleasant to drive | Better warranty than most rivals

Against Low-rent interior | Rivals have better rear seat space | Expensive

Read our full Volkswagen Caddy review or see new Volkswagen Caddy deals >>

=17. Dacia Duster

​​Cost of insurance £399

Dacia Duster front cornering

Version 1.0 TCe 100 Bi-Fuel Essential | List price £17,295 | Target Price £17,090 | Target PCP £220 | Insurance group 10E What Car? star rating 3

You may be surprised to see the Duster is cheaper to insure than the Dacia Sandero. Indeed, the latter doesn't even feature on this list. So, this means you get much more space for the money with the Duster, and a similar line-up of engines. In this instance, the Bi-Fuel version is the cheapest to insure. It should also be cheap to run thanks to the fact that it can run on liquefied petroleum gas (LPG) as well as regular unleaded petrol.

For Very cheap to buy and run | Spacious boot | 4x4 version is very capable off-road

Against Poor handling | Interior feels cheap | Low Euro NCAP safety rating

Read our full Dacia Duster review or see new Dacia Duster deals >>

=17. Hyundai i30

​​Cost of insurance £399

Hyundai i30 2020 front

Version 1.0T GDi SE Connect | List price £22,700 | Target Price £21,451 | Target PCP £262 | Insurance group 10E What Car? star rating 3

The i30 is one of the few family cars on this list, so if you're looking for a bit more space than a small car, but still want to keep insurance costs down, it could make a good choice. The i30's biggest strength is arguably its ride comfort, and the fact that it comes with plenty of kit as standard. Our favourite SE Connect trim, for instance, gives you a leather-trimmed steering wheel, automatic lights and wipers and power-folding door mirrors as standard.

For Comfortable ride | Good infotainment system on upper trims | Reasonably well equipped

Against Mediocre performance from entry-level engine | Fuel economy isn't great | Uninspiring handling

Read our full Hyundai i30 review or see new Hyundai i30 deals >>

=17. Skoda Scala

​​Cost of insurance £399

Skoda Scala 2022 front right cornering

Version 1.0 TSI 95 SE | List price £20,535 | Target Price £20,535 | Target PCP NA | Insurance group 10E What Car? star rating 5

The Scala is one of our favourite family cars, and that's largely because it's a brilliant all-rounder for the money. It has a supple ride, decent handling, a good infotainment system and amazing rear seat space. Plus, the boot is absolutely vast. In terms of insurance, the entry-level 94bhp unit is the cheapest. It's a good performer, but in a car of this size it can feel a little flat. So, for that reason, we'd recommend going for the 104bhp version if you're happy to pay a bit extra.

For Comfortable ride | Spacious rear seats and big boot | Cheap to buy and run

Against Noisier at speed than some rivals | Poor resale values | Interior feels cheap

Read our full Skoda Scala review or see new Skoda Scala deals >>

=17. Vauxhall Combo Life

Cost of insurance £399

Vauxhall Combo Life front tracking

Version 1.5 Turbo D Design | List price £21,390 | Target Price £21,390 | Target PCP NA | Insurance group 10E What Car? star rating 4

The Vauxhall Combo Life makes a fine choice if maximum practicality is what you're after. The interior is vast, and it's packed full of useful storage cubbies and clever features (such as rear seats which fold down flush with the boot floor). Despite being based on a small van, the Combo Life is surprisingly comfortable to drive, with a composed low-speed ride. The diesel engine quoted here should also be cheap to run, especially if you do lots of motorway journeys. 

For Great practicality | Decent performance | Lots of standard safety kit

Against Fiddly infotainment system | Low-rent interior | Poor body control

Read our full Vauxhall Combo Life review or see our latest Vauxhall Combo Life deals >>

About the author

George Hill is the staff writer at What Car? and joined the team in 2021. He writes and creates content of all forms, including news, features and reviews. In particular, George looks after the deals content at What Car?. This means that he keeps a close eye on the automotive industry and new car discounts across the UK, and uses What Car?'s Target Price data to create content for buyers who are looking for the best possible deal on a new car.

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Read more: The 10 cheapest new cars you can buy >>

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