What are the Cheapest Cars to Insure in the UK?

Insurance costs make up a significant part of car ownership expenses, especially for younger drivers. Choosing a car that is cheap to insure can lead to considerable savings in the long term. If you are a budget-conscious buyer and want to know what the best cheap cars to insure in the UK are, you have come to the right place.

In this article you will find out what makes a car cheap to insure, as well as discover the models with the lowest insurance costs you can buy new in 2024. If you are in the market for a new car, remember to check out our we buy any car service, so you can receive a fair value for your old vehicle, in a way that is simple and convenient for you.

Factors That Make a Cheap to Insure Car in the UK

The premiums that insurance companies will charge you are defined based on how risky the company perceives you to be. That is how likely you are to make a claim with them, and how expensive that claim might be. Cars are then classified into an insurance group, that ranges from 1, for the cheapest cars to insure, all the way up to 50. For more information, make sure to check out our comprehensive car insurance guide.

In summary, your level of risk depends on several factors, some of which pertain to the driver (age, driving habits, accident history, etc.), while others are related to the car you are trying to insure. When it comes to your vehicle, any characteristic or feature that makes you less likely to get into an accident will lower your premiums. At the same time, the cheaper the car is to fix or replace, the less you will be charged, assuming you choose a comprehensive insurance plan.

Here are some of the characteristics that will influence a car’s insurance group:

• Safety – features like emergency braking or stability control can increase your chances of avoiding an accident

• Security – features that may minimise the risk of theft

• Performance – high acceleration or top speed figures will increase your level of risk in the eyes of the insurance provider

• Replacement cost – cheaper cars will generally be cheaper to insure

• Repair cost – This can be affected by the cost and availability of parts, manufacturer, equipment level, or the technology the car uses (complex systems may require more specialised and expensive servicing).

Best Cheap Cars to Insure in the UK

Now that we know what makes a car cheap to insure, we can start to have an idea about which specific models fall into this category. They will invariably be cheap, A- or B-segment compact cars or superminis with a good safety rating and a small engine.

Here are our top picks for the cheapest cars to insure that you can buy new in 2024.

Volkswagen Up! 1.0 – 65 PS

Volkswagen finally halted production of the Up! at the end of last year, over a decade after its inception. It remains on sale in 2024 however, at least while stocks last, so this might be your last chance to get your hands on a brand-new one.

Being around for such a long time has its advantages. All the most common issues with the platform are either well-known or have been ironed out by now, so servicing should be simple and parts easy to source, driving insurance premiums down. As such, the Up! remains one of the best choices for drivers looking for the cheapest car to insure.

Hyundai i10 1.0 / Kia Picanto 1.0 – 67 PS

Riding on the shared Kia-Hyundai K1 architecture, the i10 and the Picanto have long presented themselves as some of the best options in the sector when it comes to warranty, fuel economy, reliability, and connectivity. They also sport a sleeker and more modern design compared to the somewhat dated VW Up!.

The Korean offerings come with best-in-class safety features, too. Standard equipment includes lane-keeping assist, driver attention warning, and collision avoidance assist with automatic braking. All these things help you stay safe on the road and, consequently, drive insurance costs down. The i10 and Picanto are available starting in insurance groups 1 or 2, depending on trim level.

Volkswagen Polo / SEAT Ibiza / Skoda Fabia 1.0 MPI – 80 PS

The Polo, Ibiza and Fabia all sit on the same MQB-A0 platform from the Volkswagen Auto Group. This means that they are, mechanically speaking, essentially the same car underneath, with only small (mostly aesthetic) details setting them apart.

All three versions come with the same base 1.0 MPI engine in different power levels. Given their similarity, you might expect them to fall into the same insurance group, but this is not the case. While the Polo starts from insurance group 1, the Ibiza and Fabia are given a higher insurance group 2, perhaps reflecting the sportier or more premium brand identity associated with these manufacturers.

MG3 1.5 VTi-TECH – 106 PS

The MG3 has developed a reputation as one of the cheapest bare-bones cars you can buy in the UK today. Starting at insurance group 4, it is slightly more expensive to insure compared to the previous cars on this list. Why then would you consider the MG3 over its more established competitors? Well, the main reason the MG3 stands out in this segment is its performance.

While the other cars in this list must contend with 1.0-litre engines producing between 65 and 80 horsepower, the MG3 comes with a 1.5-liter four-cylinder unit with 106 horsepower. This means it can do the 0-60 sprint in about 10.6 seconds. Comparatively, none of its rivals can break the 14-second barrier. So, if you want something that packs a little more punch when merging on the motorway without breaking the bank, the MG3 should be, at the very least, one of the options on your shortlist.

Toyota Aygo X 1.0 VVT-i – 72 PS

Toyota’s sprightly little Aygo received a makeover in 2022, growing larger and riding a little bit taller. The crossover trend has taken the automotive market by storm in the past few years, but cars in this segment have usually been classified in a somewhat higher insurance group than the ones we’ve covered so far. Starting in insurance groups 5 or 6, the Aygo X is no exception, but it remains the cheapest option to insure in the UK for drivers looking for the added practicality and visibility of a slightly raised platform.

Other cheap crossover options in the market, like the Fiat Panda mild-hybrid or the Renault Captur, start at a considerably higher insurance group of 8. This positions the Aygo X as a charming and affordable entry point into the mini-SUV market, especially for younger drivers.

Conclusion

Understanding the factors that affect car insurance premiums is essential when shopping for a new vehicle, as they can have a considerable impact on your budget. Safety rating, security features, performance, and cost of repair all influence a car’s insurance group, which ultimately dictates how much money will come out of your wallet.

The cheapest cars to insure are compact and economical models, such as the Volkswagen Up!, Hyundai i10, or Toyota Aygo X. Considering these options when making your decision can help you get the most value out of your new automotive investment.