10 cheapest cars to insure in 2025

With ever more in the way of ‘extreme weather’ claims and with ever more cars on UK roads, premiums are on average only going one way and that’s up. That’s why finding the cheapest cars to insure could save you loads of money in the long run.

There are many ways in which you can find a cheaper car insurance policy, whether it’s having a ‘black box’ data recorder fitted which snitches on your driving style, or by simply moving to Leeds or Sheffield (the most affordable regions of the UK for car insurance costs, according to Confused.com). There’s a potentially easier way, though — buy one of the cars on this list. These are the ten cars on sale in the UK right now which are in the lowest insurance groups.

Those groups are jointly decided upon by the vehicle safety and security experts at Thatcham Research, and the Association Of British Insurers. It’ll be no surprise that the insurance groups take the car’s engine size and performance into account — hence why there are so many small-engined cars on this list — but there are other criteria, such as the cost of replacement parts, the cost of repairing it if it’s involved in an accident, the cost of replacing the car entirely if it has to be written-off, what active safety systems the car has, and it’s anti-theft security.

Of course, insurance also takes you, the driver, into account — your age, your driving record, your no-claims bonus etc — but the car itself makes up a significant part of what insurance actuaries reckon you should be charged. So, buy wisely and you’ll keep your costs under control.

Carwow intensively tests every new car on sale, whether they’re expensive or cheap to insure, so that we can give our expert recommendations. We drive cars on the road and look at the individual strengths of each model, so alongside recommending these cars as being cheap to insure, you can also trust our opinion on what they’re like to own, too.

Top 10 cheap insurance cars

1. Hyundai i10
2. Volkswagen Polo
3. Skoda Fabia
4. Kia Picanto
5. Toyota Aygo X
6. Volkswagen Caddy
7. Fiat 500
8. Dacia Sandero
9. Renault Clio
10. SEAT Arona

1. Hyundai i10 1.0 auto

Insurance group: 1

Best for: Being slow and steady

If you want the cheapest insurance, you’re going to have to be prepared to compromise. In our full review of the Hyundai i10, we described the basic petrol engine as ‘gutless’ and the automatic gearbox as ‘dire.’ And guess which model has the cheapest insurance? Yup, the 1.0-litre petrol with the automatic gearbox. It’s in the lowest possible insurance group — Group 1 — which means that you’re going to be paying buttons for cover, so maybe gutless and dire don’t seem like quite so harsh a penalty.

The i10 is also good in other areas. It’s one of the last cars standing in the small city car market — the likes of the VW Up, Peugeot 108, and Ford Ka have all gone — and although it’s fairly affordable, its price has crept up lately, to the point where it’s not that far off the cost of a Renault Clio or MG3. That’s because Hyundai has had to fit lots of extra expensive safety kit to meet new legislation, but then that also has a helpful effect on the insurance premium, so it’s cost swings and roundabouts.

The i10 is roomy inside for a small car (even the 252-litre boot is decent) and the cabin feels really well made, even if the materials used are fairly cheap. It’s quite good fun to drive, as the steering is sharp, and being so small and light means that it always feels agile.

The downside is the combo of the 1.0-litre petrol engine and the automatic gearbox. The five-speed auto shifter is awful and takes… ages… to… shift… up… a… gear… there it goes. The 63hp petrol engine is also pretty short on power and you can head off and make a cup of tea while you’re waiting the 18.4 seconds it takes to get from standstill to 62mph. On the upside, switching to the much-better manual gearbox model means you only climb one insurance group to Group 2.

2. Volkswagen Polo 1.0 Life

Insurance group: 3

Best for: Being surprisingly stylish

Shopping in the bargain bin of insurance costs doesn’t necessarily mean having to compromise your car buying all that much. After all, this VW Polo is in Group 3 for insurance, which means that while it’s not going to quite have the cheapest premium going, it won’t be far off, and you’re getting a ‘proper’ car.

As with the Hyundai i10 (above) you’re going to have to make a few compromises in your Polo shopping to get that lowly insurance group. For a start, this version uses the most basic of the entire Volkswagen engine lineup, a three-cylinder 1.0-litre petrol engine with just 80hp. You want a turbo? Then you’ll have to upgrade to the 95hp version, and that’s in a higher insurance group.

With only that 80hp to play with, sparkling performance is not in this Polo’s repertoire — 0-62mph in 15.6 seconds anyone? That said it’s an eager engine, so it doesn’t feel quite so slow as that sounds, and the Polo is very economical. To get Group 3 insurance you need to buy the basic Polo Life, but that does come with all-round electric windows and digital instruments, so the classy and well-made cabin doesn’t feel too bare.

Space is excellent front and rear, although the boot — 351 litres — isn’t as big as that of some other cars in its class, notably the mechanically identical Skoda Fabia.

To drive, the Polo is very slick and smooth. That little engine might not have much in the way of power, but it makes a sweet little three-cylinder off-beat sound, while the Polo’s comfort over bumps is excellent, helped by the small 15-inch alloy wheels.

True, other cars in this class are more fun from behind the wheel, but the Polo represents the best in safe and sensible motoring (and indeed it’s very safe, with lots of standard safety equipment and an excellent Euro NCAP crash test rating).

3. Skoda Fabia 1.0 MPI

Insurance group: 4

Best for: Being a Polo, but cheaper

How come a Skoda Fabia is a full insurance group worse off than a VW Polo with the same 80hp engine and same basic structure? It’s not entirely clear, but whatever the reasons, the Fabia is that little bit pricier to insure than the Polo. However, given that you’re saving over £1,000 on the purchase price, that should outweigh any potential insurance penalty.

Being the same as the Polo under the skin means that this Fabia 1.0 MPI shares the non-turbo 80hp engine, so you’re looking at a glacial 15.7 seconds to get from standstill to 62mph, but then the upside of that is that if you’re taking things gently then you’ll get better than 50mpg fuel economy. Plus the little three-cylinder engine sounds sweet when you rev it.

Inside, the Fabia actually manages to look a little more interesting than the VW with a dashboard that’s more stylish, if perhaps not quite so well-made as that of the Polo. Space is excellent, and the Fabia has an even bigger boot than the VW, with its 380 litres of luggage space matching bigger, more expensive hatchbacks. You do have to pay extra for an adjustable boot floor though.

The Fabia is nippy and easy to turn in town, and it’s quite refined when you’re at higher speeds, with very little in the way of wind noise on the motorway. The suspension is nice and supple, helped by the small standard wheels on this basic model, so you’ll not get jostled nor bumped around in town, and the Fabia feels well planted when tackling country roads. Fun? Not quite, although it’s not totally dull either, but this is no junior hot hatch. Then again, with that insurance group rating you wouldn’t expect it to be.

4. Kia Picanto 1.0 DPi 2

Insurance group: 4

Best for: Being a sportier alternative to the Hyundai i10

Sporty is a relative term here, but there’s definitely a sensation that the little Picanto is a bit more fun, a bit more engaging to drive than the Hyundai i10, in spite of both cars being identical under the skin. Perhaps that’s why the Kia is a whole three insurance groups worse off than the Hyundai.

Unlike the Hyundai, both the manual and the automatic versions of the basic level ‘2’ Picanto are in Group 4 for insurance, so you don’t have to suffer the stuttering indignities of the auto option here. You are still stuck with the basic 63hp three-cylinder petrol motor so performance is… leisurely. Zero-62mph in 15.4 seconds leisurely.

Still, the upside is exceptionally good fuel economy — Kia quotes 54mpg and you might just brush 60mpg if you’re careful. Longer journeys aren’t the Picanto’s friend — the upright driving position starts to get uncomfortable and it’s not the quietest car around — but for nipping in and out of town, or on country roads, it’s actually surprisingly good fun. The tiny 9.4-metre turning circle makes the Picanto a doddle to park in tight spaces.

The cabin is basically quite cheap, but doesn’t feel downmarket, and the 255-litre boot is actually quite generous for such a small car.

5. Toyota Aygo X 1.0 Pure

Insurance group: 5

Best for: Funky styling

When Toyota turned the little Aygo into the chunkier Aygo X, it threw out the small-and-plain city car look of the old model and turned it into a chunky, funky wannabe SUV. Don’t be fooled by the plastic protection on the wheelarches and sides — this is no serious 4×4, but there is a bit of extra ground clearance for dealing with unmade roads and the like.

Inside, the Aygo X is stylish and very roomy, but there’s a lot of really cheap, scratchy plastic in the cabin, which does let the side down a bit, especially given Toyota’s reputation for quality. The 226-litre boot is also slightly small, considering the Aygo X’s overall chunkiness — a Hyundai i10 has more boot space, and that’s not pretending to be an SUV.

The Aygo X does make up for that in how it drives, though. The 1.0-litre three-cylinder engine is perky, even if it only has 72hp. Zero-62mph takes 14.9 seconds, which certainly isn’t quick, but the Aygo X feels more lively than that when you’re behind the wheel and the five-speed manual gearbox has a slick and enjoyable shift quality.

Stick to town and country driving, and the Aygo X is very economical, easily bettering 55mpg. That does fall apart if you go on the motorway, though, where the lack of a sixth gear means that long runs at 70mph will result in fuel consumption closer to 40mpg.

6. Volkswagen Caddy MPV 1.5 TSI

Insurance group: 8

Best for: Space

It’s often the case that if you want the best value in motoring, you actually need to buy a van, and so it proves here. The Volkswagen Caddy is a handily spacious compact van when you buy it as a commercial vehicle, but spend a bit extra to get rear seats and windows, and suddenly you have an affordable family-sized car with reliability and cheap running costs on its side, as well as decent Group 8 insurance costs. Certainly on a cabin-space-per-insurance-premium rating, the Caddy MPV is basically unbeatable.

To get the lowest possible insurance group, you’re getting the most basic possible engine; the 1.5-litre TSI petrol four-cylinder unit has only 116hp, but it’s reasonably quick off the mark thanks to a turbocharger, and so 0-62mph takes 11.9 seconds which makes the Caddy one of the quickest vehicles here.

The standard version has seats for five (seven seats costs extra and bumps you up a few insurance groups) but there are three individual seats in the back, which is great for family life. Meanwhile, the sliding side doors and the massive boot holds more than 1,200 litres which is more than many cars can carry with their back seats folded down. The Caddy manages that with all the seats in use. Fun to drive? Not really but it’s basically a Golf underneath so it’s far from bad.

7. Fiat 500 1.0 Hybrid

Insurance group: 10

Best for: Italian style

Technically, Fiat has actually stopped making this version of the almost-immortal 500, which has been on sale since 2007. However, it is still available from your local Fiat dealer, and it’s still one of the very cheapest cars you can buy, so it stands to reason that it’s also one of the cheapest to insure. A Group 10 insurance rating looks a touch steep in this company, but that’s largely because the basic 500 is actually a mild hybrid, and the battery and electrical bits add to the potential repair bills, as does a now-expired Euro NCAP safety rating.

Being as it was first designed way back in 2007, the 500 has its drawbacks. The cabin is tiny, the driving position feels like you’re sitting on a barstool, it bounces about over bumps, and refinement is not a strong suit. While it’s stylish inside, it’s also quite old-fashioned in places, with some buttons and switches that date back to the 2003 Fiat Panda. That said, it’s also enormously good fun to drive, still looks achingly cool, and thanks to the mild hybrid system it’ll do 60mpg all day long.

8. Dacia Sandero 1.0 TCe Essential

Insurance group: 10

Best for: Being sensibly cheap

You’d think that driving around in the most basic Dacia on sale would be akin to wearing a horse-hair shirt, miner’s boots, and walking to work in the rain. It’s not, though — actually, this generation of Sandero feels surprisingly sophisticated, and thanks to the fact that it’s doing a good visual impression of a VW Polo on the outside, it looks sophisticated too.

Dacia’s poor record with the Euro NCAP crash test (not enough high-tech electronic safety nets for NCAP’s liking…) means that the Sandero gets a fairly tough Group 10 insurance rating, but the low entry price, and the frugality of the eager little 1.0-litre three-cylinder turbo petrol engine (which does 49mpg) means that you’ll soon make back any extra that you spend on cover.

The cabin is full of lots of really, really cheap plastics but the seats are comfy, there’s good space in the back seats, and a useful 328-litre boot. This basic Expression model does without a touchscreen but instead there’s a handy clamp on the dashboard that holds your phone, and a free Dacia app turns it into the car’s screen, so you’re not missing out on music nor podcasts as you drive.

Don’t go expecting sports car responses, but the Sandero is just fine to drive, even on longer journeys.

9. Renault Clio 1.0 TCe Evolution

Insurance group: 10

Best for: French comfort

Under the skin, this Clio and the Dacia Sandero are basically mechanically the same. You’d think that would mean that the Clio — pricier to buy and therefore to replace if written-off — would therefore be in a higher insurance group, but no; it’s in the same Group 10 as the Dacia. How so? Simply because the Clio is one of the highest-rated cars for safety by Euro NCAP, so that gives it a net gain in insurance terms.

There are other gains. Yes, you have to spend considerably more to buy a Clio than a Sandero, but you’re getting a car with proper style on the outside — it’s a really handsome car — and a much higher-quality cabin (although we wish Renault would make a centre console that’s less wobbly). Comfort levels are very high, though, and you’d not feel tired even if you drove the Clio from one end of the country to the other. It’s just a shame that the back seats are a little tight.

The little turbo petrol engine is lively and economical, and the Clio does a good job of mixing sensible comfort with driver entertainment. The only downsides are that that manual gearbox comes with an obstructively large gear shift lever which feels weird to hold, and that the sleek styling means over-the-shoulder visibility isn’t as good as it ought to be around town.

10. SEAT Arona 1.0 TSI SE Edition

Insurance group: 10

Best for: Cheap SUV insurance

There’s an odd thing to note about the Seat Arona, and that’s that it’s actually in a cheaper insurance group — Group 10 — than the mechanically identical but cheaper and smaller SEAT Ibiza. Why? It’s hard to tell, but it’s most likely down to the fact that small SUV buyers are statistically safer drivers (many of them will be older drivers, downsizing) than those buying small hatchbacks. Or it’s just that the Ibiza used to have a rally car version.

Whatever the reason, the Arona makes a compelling case for itself even aside from its low insurance group. The 95hp turbo three-cylinder engine is perky to drive, but still very economical and while the interior isn’t the most stylish, it’s well-made and okay for space. There’s a decent standard touchscreen, but rear seat legroom could certainly be better. Plus, while the Arona has a decent boot, 400 litres isn’t the biggest around.

To drive, it’s a little dull but entirely pleasant and easy-going. There’s actually quite good steering feel, and you can chuck the Arona around, but it’s never quite as enjoyable to drive as the smaller, lighter, lower Ibiza. If you’re looking for thrills, look elsewhere, but if you want a fashionable SUV body shape with the lowest insurance possible, then look no further.

Cars to avoid for cheap car insurance

There are some obvious cars to avoid, and which fall into the highest insurance group — Group 50. Anything that’s a serious high-performance sports car or supercar, of course. Or the likes of a Mercedes-AMG or BMW M car will always come with a hefty insurance premium. There are some cars that you might not expect to find in Group 50 though, such as the electric Audi Q6 e-tron — even the standard Sport versions, let alone the S-Line, are in the highest insurance group. So too are all BMW iX electric SUVs (pricey battery repair costs most likely to blame for both this and the Audi), as well as the BYD Seal saloon, the INEOS Grenadier, the Kia EV9, all versions of the Land Rover Defender, many versions of the Mercedes E-Class saloon, and the new Toyota Land Cruiser.

How to choose the best car for you with the lowest insurance

Engine size

Look back at the list above — a common thread running through almost all of the cars here is that they have an engine of around 1.0-litre capacity. So keep your engine size down, and you’ll similarly shrink your insurance. Worried about being too slow? Don’t be — while some of the models we’ve mentioned above are indeed pretty sluggish, you can often upgrade to a more powerful version, with peppy performance, at the cost of only one or two insurance groups.

Safety

The official Euro NCAP safety rating for a car plays a big part in its insurance rating, so go and plough through the results on its website and pick the cars that you like which have the best scores. The effect of a better safety score can be profound — a 400hp Volvo EX30, for example, which can accelerate faster than some Ferraris, isn’t in the top insurance group (it’s actually in Group 40), and that’s down to a combo of Volvo drivers being considered safe insurance bets, and the EX30’s impressive safety score.

How to get cheaper car insurance?

• Read our advice guide on how to get cheaper car insurance.
• Choose a cheaper car. Check the insurance group of any car before buying. The model you drive will have a big impact on your premiums, so choose a smaller car in a lower insurance group.
• Compare quotes. Compare the insurance premiums on a comparison website or with a broker for the three main types of car insurance: third-party, third-party (fire and theft) and fully comprehensive.
• Reduce your mileage. The fewer miles you cover in a year, the lower the risk of a collision, which is why insurance providers factor in annual mileage when calculating the cost of your premium.
• No-claims discount. If you don’t make any claims on your car insurance, you’ll be rewarded when you renew the policy with a no-claims discount (NCD). Building up a good NCD over a number of years can save a lot of money over the years.
• Black box. Telematics, or black box insurance, can lower premiums because the insurer can monitor the way you drive through a small device installed in your car or via an app downloaded on your smartphone. If you can demonstrate you’re a safe driver, you should qualify for a discounted premium.
• Pay-as-you-go. If you only drive occasionally, pay-as-you-go (PAYG) insurance might be your best bet. These policies adjust your premiums according to the amount of time or miles you clock up on the road.
• Penalty points. Safer drivers are offered lower premiums, so if you get caught speeding and receive penalty points on your licence, expect to pay higher premiums.
• Pay once. If you can afford to pay your annual car insurance premium in one lump sum, you will avoid interest on monthly instalments, so it ends up cheaper.
• Increase your excess. If you opt to pay a higher voluntary excess (how much you pay towards a claim), the cost of your premium will fall. Remember that you will have to pay the voluntary as well as the compulsory excess set by the insurance provider if you need to make a claim.
• Pay for what you need. You can increase your cover by adding extras such as courtesy car cover, windscreen cover, breakdown cover and motor legal protection – useful extras, but are they worth paying extra for?
• Modifications. If you’re thinking about modifying your car, weigh up the cost before you go ahead. Some modifications could make your car more appealing to car thieves, which would be reflected in higher premiums.
• Park off-road. Where you park your car can make a difference to how much your premium comes to. Parking on your driveway is a good option and while a garage is a secure place to park, some insurers will think you could damage your vehicle driving it in and out.
• Improve security. Fitting an approved alarm or immobiliser should help to cut the cost of car insurance but speak to your provider directly to get any saving reflected in your premium.
• Go advanced. An advanced driving course like Pass Plus can help boost your confidence on the road and could get you a discount on your car insurance.
• Named driver. If you’re a newly qualified driver and you share a car with a more experienced driver, you could cut the cost of your premium by adding them to your insurance policy. The person who uses the car the most must be the main driver: if they’re not, you’ll be guilty of fronting, which is considered insurance fraud.
• Multi-car policies. Many car insurers offer a discount if you insure two or more cars under the same policy. These multi-car policies could work out cheaper than insuring each car under a separate policy.
• What’s your job? Insurance providers think that people in certain occupations are riskier bets, which is why your job affects how much your pay for your cover. Try to select a job title that could result in a cheaper premium, but it must still accurately describe what you do. If it doesn’t, you could invalidate your insurance or even be prosecuted for insurance fraud.
• Auto-renewal. Legal rules mean that insurance providers can’t quote existing customers a higher premium for renewing their car insurance than new customers. However, it’s always worth comparing car insurance quotes to see if you can find a cheaper deal elsewhere before signing up for another year.

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