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 client's vehicle getting into an accident or being stolen, the less they'll pay for car insurance. Auto insurers use a range of factors to determine a car's risk, and the choice of vehicle often plays a huge role in determining how much premiums will cost.
In this article, Insurance Business discusses the cheapest cars to insure in the UK. We will also discuss insurance groups. This is an often-overlooked detail that can have a major impact on your client's insurance costs. We will also look at the other factors that dictate car premiums. Read on and find out which car models come cheap when taking out insurance.
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. These cars are typically low-spec models with smaller engines that are easier and less costly to repair. Here are the cheapest cars to insure in the UK based on these groupings. This list is arranged alphabetically.
Typical insurance groups: 3–12
The Dacia Sandero is a small five‑door hatchback known for low purchase prices. It works as a basic but practical transport with simple engines and minimal extras. Its modest performance and cheap parts usually help keep insurance groups relatively low.
Typical insurance groups: 12–22
The Ford Puma is a compact crossover based on the now-discontinued Fiesta platform. It focuses on sharp handling and everyday usability rather than outright size. Petrol mild‑hybrid engines are common, so sportier trims and extra power can push it into mid‑range insurance groups.
Typical insurance groups: 1–10
The Kia Picanto is a city car with a small footprint and light weight. Many 1.0‑litre versions sit in some of the lowest insurance groups and are the cheapest to insure. The Picanto suits new drivers and urban motorists who want minimal repair and running costs.
Typical insurance groups: 3–22
The Renault Clio is a supermini that sits between a city car and a family hatch. Lower‑powered petrol and diesel models like these tend to sit in the cheaper car insurance groups. Sportier versions and higher trims move the Clio into higher groups due to extra performance and equipment.
Typical insurance groups: 7–18
The SEAT Arona is a small SUV based on the Ibiza. It shares engines and many parts with other Volkswagen Group models. Insurance groups tend to sit in the low‑to‑mid range, with lower‑power petrol versions usually cheapest to cover.
Typical insurance groups: 2–20
This is a supermini that shares a platform with the Volkswagen Polo and Skoda Fabia. Entry‑level cars with a 1.0‑litre, 3-cylinder engine like this usually sit in lower insurance groups. Sport trims or more powerful engines push it into higher groups.
Typical insurance groups: 4–18
The Skoda Fabia is a practical small hatchback with a focus on value and space. It uses the same core mechanical parts as the Polo and Ibiza. Small, efficient engines help many versions sit in the lower half of the insurance‑group scale.
Typical insurance groups: 14–20
The Toyota Yaris Cross is a small hybrid SUV based on the Yaris. It combines a petrol engine with an electric motor, which helps with fuel economy. Extra tech and SUV styling place it in mid‑range insurance groups rather than the very lowest.
Typical insurance groups: 5–20
The Volkswagen Caddy is a compact van and MPV often used by trades and families. Versions range from simple panel vans to more passenger‑focused models. Insurance groups vary quite widely depending on body style, power output, and use.
Typical insurance groups: 1–28
The Volkswagen Polo is one of the best‑known superminis in the UK. Lower‑powered petrol models for everyday use can fall in very low insurance groups. GTI and higher‑output trims rise into higher groups because of their performance and price.
You'll notice that the cheapest cars to insure in the UK aren't necessarily the cheapest cars to insure as a new driver, or among the cheapest cars to insure for 17-year-olds. We'll explain later how the age of a driver affects the cost of coverage.
The cheapest cars to insure for first-time drivers in the UK are usually small, low‑power hatchbacks, and city cars. Insurers favour models that are easy and cheap to repair, have modest performance, and strong safety ratings and features for their size. Below is a practical, non‑exhaustive list of models that often sit in lower insurance groups and are regularly recommended for young or new drivers.
Insurers treat power output and top speed as risk factors. City cars and basic superminis have modest acceleration and lower top speeds. That often helps keep claim severity and, in turn, premiums down.
Mainstream small cars share many parts and have wide repair networks. Panels, lights, and mechanical parts cost less than premium brands or complex SUVs. That reduces average repair costs after minor accidents.
Modern small cars usually have multiple airbags, stability control and strong crash‑test scores. For young drivers, those features matter and can support lower groups compared with older cars with a lower safety rating, and of a similar size.
Many of these models are widely used as first cars or driving‑school cars. Their typical drivers and usage patterns can be less aggressive than owners of hot hatches or performance models, which may feed into insurer data over time.
For a young or newly qualified driver, a broker can:
The exact cheapest models for any given client will still depend on their age, postcode, mileage, occupation, claims history, and the specific engine and trim. But small city cars and entry‑level superminis like those above are usually the best starting point when a young driver needs the lowest realistic premium.
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 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. Most cars in this range are "performance-focused with high speed and power." Sports coupes 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 client's car insurance group, however, is not the only factor that insurers consider when calculating premiums. Other parameters that auto insurance companies also consider are:
Ever wondered how insurers calculate premiums for different types of policies? Check our complete primer on insurance premiums and get the answers.
Automatic cars are often more costly to insure compared to their manual counterparts because of several key elements, including:
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.
In general, yes. EVs are more expensive to insure than comparable petrol or diesel cars. The main reason is due to how they are built and repaired. But the gap is starting to narrow in some segments, and it is very model‑specific.
Finding about the cheapest cars to insure in the UK is one of many topics you can find here on Insurance Business. Browse our Motor & Fleet section to get more news and information on auto insurance.
