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 cars with the lowest annual premiums...
Insurance premiums are at their lowest for five years, with the average annual cost down by £38 to £430 since the start of 2021. However, new and young drivers may still struggle to keep their annual bills below £1000, so we’ve rounded up the cheapest cars to insure from the hundreds of new models on sale.
Checking the car insurance group of a potential purchase will give you a good indication of 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 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.
The cost of cover also varies for people of different ages and professions. So, to make all our quotes comparable, we’ve based each one on a 40-year-old male teacher who is married and living in Caerphilly, with 10 years' no claims bonus and no driving convictions or accidents within the past five years, driving 10,000 miles a year.
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 to our free New Car Buying service.
The cheapest cars to insure from 20 to 11
20. Volkswagen Up
Cost of insurance £293
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 the Up. For a start, it’s one of an increasingly rare breed - a city car with a petrol engine. Its siblings, the Skoda Citigo and Seat Mii, are now only offered as pricier pure-electric models.
The entry level Up 1.0 65 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.
19. Fiat 500X
Cost of insurance £284
The big brother of the Fiat 500, the 500X is a small SUV that competes with the Ford Puma and Seat Arona. Although the cheapest Pop trim provides cruise control and rear parking sensors, it doesn’t have automatic emergency braking, and you can’t add it as an option. It’s an active safety system that helps to prevent collisions, so we’d recommend moving up a grade to Connect spec so you can add it to your car.
The turbocharged 1.0-litre petrol engine is sprightly enough for most driving situations and comes with a manual gearbox. We prefer it over the 1.3 petrol, which can only be had as an automatic.
18. Ford Fiesta
Cost of insurance £280
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 petrol that our insurance quote is based on isn’t as sprightly as the 1.0 turbo, but it’s well suited to urban life. And entry-level Trend trim is surprisingly comprehensive, including air con, automatic lights, a 8.0in infotainment touchscreen and a heated windscreen.
17. Kia Picanto
Cost of insurance £277
The Picanto is a fine city 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 / Android Auto smartphone compatibility, while lower spec trims only come with an AM/FM radio.
The Picanto’s big brother, the Rio, offers plenty of room at a keen price. To get the cheapest insurance you’ll need to go for the lacklustre 1.25 petrol engine and bargain basement 1 trim, which only provides air con, auto lights and a standard stereo with Bluetooth connectivity. If you want punchier performance we’d suggest spending a little extra cash to upgrade to the three-cylinder 1.0 petrol engine; and smartphone users will be happier with the large infotainment system that’s standard with 2 trim.
15. MG 3
Cost of insurance £267
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.
14. Toyota Aygo
Cost of insurance £266
The Aygo is one of three cars with same engines and underpinnings; its sisters are the Citroen C1 and Peugeot 108. It costs more to insure than its siblings, in part due to higher purchase prices when new. However, even the most affordable X-Play spec version that our insurance quote is for offers plenty of equipment for your money. It comes with air-con, electric front door mirrors and windows and steering-wheel mounted audio and phone controls.
13. Dacia Sandero
Cost of insurance £261
Britain’s cheapest new car is also one of the most affordable to insure. Although it lacks the latest active safety features, it’s based on the same underpinnings as the current Renault Clio, so its styling is bang up to date, it has a comfortable ride and there’s lots of space for passengers and luggage. The most affordable Access trim, which our insurance price is based on, is pretty spartan, though, so we’d upgrade to Comfort to get a decent level of kit.
12. Hyundai i10
Cost of insurance £260
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 SE trim should satisfy the most basic needs, but you’ll need to move up to SE Connect to get a touchscreen infotainment system and other niceties.
The Micra has been one of the most popular models with new drivers since the original model went on sale in the late 1980s, and it’s been through a number of reincarnations since then. The latest version has an upmarket feel and promises sportier driving manners and a plusher interior than before.
Examples with the least powerful non-aspirated 1.0 petrol engine are sluggish and scarce on the nearly new market, so our insurance quote is based on the 99bhp 1.0 petrol, which offers strong performance at all speeds. The most affordable Visia trim, on which our premium is based, is rather spartan, so we’d opt for Accenta to get more creature comforts.
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