When it comes to car insurance, certain vehicles tend to be cheaper to insure than others. Typically, cars that are smaller, safer, and less powerful fall into this category. Here’s a breakdown of 10 cars that are often considered among the cheapest to insure, based on common factors like safety ratings, repair costs, and theft rates.
The Cost of Car Insurance and What Affects It
Car insurance can be a major expense, especially for new or young drivers who are seen as higher risk. The amount you pay for car insurance largely depends on two key factors: your driving history and the cost and performance of your vehicle.
Insurance providers assess several aspects when calculating your premium, including your age, how long you’ve held a license, and any penalty points or convictions on your record. These factors help determine whether an insurer will cover you and at what cost.
Additionally, all cars are categorized into insurance groups, ranging from 1 to 50, with cheaper cars in lower groups costing less to insure. High-end cars in higher groups, such as group 50, tend to have the highest insurance costs. However, you shouldn’t base your decision solely on the insurance group, as many other factors influence premiums. It’s a good idea to compare quotes for different models before making a final decision. Also, remember that a great deal on a new car could save you more overall, even if the insurance is a bit higher.
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Top 15 cheap insurance cars
- Volkswagen Polo
- Hyundai i10
- Volkswagen Up
- Kia Picanto
- Dacia Sandero
- Seat Ibiza
- Renault Clio
- Skoda Fabia
- Kia Rio
- Toyota Aygo X
- Nissan Micra
- MG 3
- Fiat Panda
- Seat Arona
- Renault Captur
1. Volkswagen Polo: A Comfortable and Classy Choice
The Volkswagen Polo offers comfort, sophistication, and a high-quality interior that gives it the feel of a larger car. Each Polo model comes equipped with a touchscreen infotainment system, adding to its modern appeal.
For drivers looking for lower insurance costs, the 1.0-litre petrol engine variants are a great option, especially if most of your driving is in urban areas. However, if you frequently travel on motorways or faster A roads, upgrading to a model with a larger engine might be worth the extra cost for better performance
2. Hyundai i10: A Compact and Well-Equipped Hatchback
The Hyundai i10 is a thoughtfully designed hatchback that comes with a range of standard features, including air conditioning and electric windows, even on the entry-level SE model. Many versions of the i10, even those with modest trim levels, also include a touchscreen infotainment system.
While the cabin can comfortably fit four adults, it’s best suited for shorter journeys. The boot space is sufficient for a weekly grocery run, making it practical for everyday use. Its small size and light controls make the i10 perfect for city driving, making parking easy.
However, the 67hp engine may require a bit of effort to keep pace with faster traffic, which is a key reason why these models fall into the lowest insurance group.
3. Volkswagen Up: A Timeless Compact Car
While the Volkswagen Up may be an older model available only as a used car or from dealer stock, it remains a standout option, much like a seasoned athlete still performing at a high level. Its interior may seem simple at first glance, but a closer look reveals a wealth of standard features, including DAB radio, Bluetooth, and air conditioning.
The clever design and efficient use of space provide more room than you might expect in such a compact car. Additionally, being a Volkswagen, the interior quality is impressive for its price range. However, the 60hp engine that qualifies the Up for group 2 insurance requires a bit of revving to keep pace with faster traffic.
4. Kia Picanto: The Ideal City Car
The Kia Picanto is an excellent option for those in search of a reliable city car, boasting stylish design choices and a high level of standard equipment. While the entry-level version may not impress, mid-spec models come equipped with alloy wheels, Bluetooth, and air conditioning. If you opt for a higher trim level, you’ll also enjoy an easy-to-use touchscreen infotainment system.
The 1.0-litre engine is well-suited for urban driving but can feel strained at motorway speeds, with noticeable noise in the cabin. For those seeking more power, there are versions with a 100hp turbocharged engine, although these models may come with higher insurance costs.
Additionally, all Kia vehicles come with a seven-year warranty, providing added peace of mind for owners.
5. Dacia Sandero: The Most Affordable New Car
The Dacia Sandero holds the title of the cheapest new car available today, proving that affordability doesn’t have to compromise quality. It comes equipped with a respectable amount of standard features, including Bluetooth and air conditioning, and you can also choose a touchscreen infotainment system for added convenience.
Although Dacia has discontinued the entry-level Sandero Access, the budget-friendly Essential model still offers great value and falls into insurance group 4, making it an economical choice for new car buyers.
6. Seat Ibiza: A Spacious and Stylish Hatchback
The Seat Ibiza offers ample space for four adults and features a practical 355-litre boot, making it a great choice for everyday use. With its stylish exterior, the Ibiza is not only attractive but also delivers an enjoyable driving experience.
Every model comes standard with a colour touchscreen infotainment system, alloy wheels, and a leather steering wheel for a touch of sophistication. While the 1.0-litre MPi engine produces 80hp, the newer turbocharged 1.0-litre TSI engine boasts 100hp but comes with higher insurance costs.
7. Renault Clio: A Classy Compact Car
Spending time in the Renault Clio will make you forget that it falls into insurance group 3. The dashboard features a sleek and minimalist design, and the materials used throughout the cabin feel high-quality and well-assembled.
The front seats offer ample comfort and space, making it a pleasant ride for the driver and passengers. However, taller individuals may find the rear seating a bit cramped, which could be less comfortable for long journeys.
8. Skoda Fabia: A Smart Choice for Value
The Skoda Fabia offers excellent value for money and serves as a viable alternative to the Volkswagen Polo. Sharing the same Volkswagen Group underpinnings, the Fabia boasts similar features and engine options but comes at a lower price point. The interior is comfortable, although it may not match the Polo’s build quality, making it a pleasant vehicle for travel.
The entry-level 80hp 1.0-litre MPI engine, which falls into insurance group 4, may feel a bit sluggish, especially for motorway driving. If you frequently travel on highways, it’s advisable to opt for a variant with the more powerful TSI engine, although this will place the Fabia in a higher insurance group. Regardless of the version you choose, all Fabia models are economical, ensuring that your choice remains budget-friendly.
9. Kia Rio: Stylish and Affordable
Although the Kia Rio has been discontinued, it remains a stylish and affordable choice, with a cabin that feels comparable to more premium vehicles. Some models are still available in dealer stock, or you can opt for a used version.
The Rio offers generous features across its range, including standard Bluetooth and air conditioning on all models. Mid-spec variants and above come equipped with a touchscreen infotainment system as well.
To keep insurance costs low, consider the basic engine option, which is an 84hp 1.2-litre unit. This choice ensures you enjoy the Rio’s benefits without breaking the bank on premiums
10. Toyota Aygo X: Affordable and Stylish SUV Alternative
Launched in 2022, the Toyota Aygo X replaces the traditional Aygo supermini and offers affordable insurance options. Models with the Pure or Edge trims fall into insurance group 6, while the higher-spec Exclusive trim is classified in group 7.
With its light steering and elevated ride height, the Aygo X serves as an excellent urban companion. Its rugged design adds a touch of visual flair compared to more conventional city cars, making it a stylish choice for city driving.
11. Nissan Micra: Stylish and Affordable
While the Nissan Micra variant previously found in insurance group 1 is no longer available, the 92hp 1.0-litre Acenta model with the CVT automatic gearbox is a great option in the affordable insurance group 4. If you opt for the manual gearbox version, it rises to insurance group 8.
The Micra is not only stylish and comfortable but also easy to drive, offering excellent fuel efficiency and low servicing costs. Although it has recently been discontinued, nearly-new models are still readily available and budget-friendly.
12. MG3: Spacious and Affordable Small Car
While it may not win any awards for style, the MG3 stands out for its spacious interior, affordability, and engaging handling. If you opt for the Explore or Excite models, which feature a single 1.5-litre petrol engine, you’ll benefit from being in insurance group 7 as well. It’s a practical choice for those seeking a budget-friendly small car without compromising on space or driving enjoyment.
13. Fiat Panda: Practicality Meets Charm
While the Fiat Panda might not have the same immediate allure as the Fiat 500, it brings its own unique character and offers greater practicality. The Life trim, equipped with a 70hp 1.0-litre petrol engine, is an excellent choice for those seeking affordable insurance, thanks to its group 7 insurance rating. Additionally, like many small Fiats, the Panda boasts low running costs, making it a wallet-friendly option for drivers.
14. Seat Arona: Style and Performance in a Compact SUV
The Seat Arona stands out among its small SUV competitors with its stylish interior, although some materials may feel a bit inexpensive in certain areas. The vehicle comes standard with an 8.25-inch infotainment system, but opting for a model beyond the entry-level version will get you a more advanced 9.2-inch system. Every trim level features a 1.0 TSI petrol engine, while the higher-spec FR and FR Sport variants offer a more powerful 1.5 TSI engine as an alternative.
15. Renault Captur: Stylish Design Meets Modern Technology
The Renault Captur boasts a more stylish appearance compared to some of its conventional rivals. Inside, it features a sleek infotainment system, an appealing design, and upgraded materials that enhance the overall experience. The entry-level Evolution trim comes equipped with a 7.0-inch portrait-oriented infotainment system that includes built-in sat nav. Standard features also comprise Apple CarPlay, Android Auto, DAB radio, and Bluetooth connectivity. For those seeking a larger display, higher trims offer an impressive 9.3-inch portrait touchscreen.
Tips for Securing Cheaper Car Insurance
If you’re looking to lower your car insurance costs, follow these strategies:
- Choose a More Affordable Vehicle: Before purchasing a car, check its insurance group. Opt for a smaller vehicle in a lower insurance group to help keep your premiums down.
- Compare Quotes: Use comparison websites or brokers to evaluate insurance premiums for the three main types of coverage: third-party, third-party fire and theft, and fully comprehensive.
- Reduce Your Mileage: Lower annual mileage reduces the likelihood of accidents, which can lead to decreased premiums. Insurance providers often factor in how much you drive when calculating costs.
- No-Claims Discount: Avoiding claims on your insurance can earn you a no-claims discount (NCD) upon renewal. Accumulating a strong NCD over the years can lead to significant savings.
- Consider Telematics Insurance: Also known as black box insurance, this allows insurers to monitor your driving habits. Demonstrating safe driving can qualify you for lower premiums.
- Explore Pay-As-You-Go Insurance: If you don’t drive often, consider pay-as-you-go (PAYG) insurance, which adjusts your premiums based on how much you use your vehicle.
- Be Mindful of Penalty Points: Accumulating penalty points for speeding or other violations can lead to higher premiums, as insurers view these drivers as higher risk.
- Opt for Annual Payments: If possible, pay your premium in one lump sum rather than in monthly installments to avoid additional interest charges.
- Increase Your Excess: Choosing a higher voluntary excess can reduce your premium. Just remember, you’ll need to pay both the voluntary and compulsory excess if you make a claim.
- Buy Only What You Need: Assess whether you really need additional cover, like courtesy car coverage or windscreen protection, as these can increase your premium.
- Think Twice About Modifications: Modifying your car can sometimes increase its appeal to thieves, leading to higher premiums. Consider the cost versus benefit of any modifications.
- Park Off-Road: Where you park your vehicle can influence your premium. Parking in a driveway is preferable, and while a garage is secure, some insurers might consider potential damage during parking.
- Enhance Security Features: Installing an approved alarm or immobiliser can lead to lower insurance costs. Be sure to notify your provider about these upgrades for potential discounts.
- Take an Advanced Driving Course: Completing courses like Pass Plus can enhance your driving skills and possibly secure you a discount on your insurance.
- Add a Named Driver: If you’re a new driver, consider adding an experienced driver to your policy. Just ensure the experienced driver is the primary user of the vehicle to avoid any issues with insurance fraud.
- Consider Multi-Car Policies: Insuring multiple vehicles under the same policy can often lead to discounts. This can be more economical than separate policies.
- Your Job Matters: Some professions are perceived as higher risk by insurers. If applicable, choose a job title that could lead to a lower premium while accurately representing your occupation.
- Avoid Auto-Renewal: While insurers can’t charge existing customers more than new ones upon renewal, it’s smart to compare quotes annually to find the best deal before renewing your policy.
By following these tips, you can significantly reduce your car insurance premiums without compromising on essential coverage.
Conclusion
Finding affordable car insurance doesn’t have to be a daunting task. By taking simple steps such as choosing a lower insurance group vehicle, comparing quotes, reducing mileage, and utilizing discounts like no-claims bonuses or telematics, you can significantly lower your premiums. It’s also essential to stay proactive by reviewing your policy each year and making adjustments based on your changing needs. Whether it’s increasing your excess, enhancing your car’s security, or avoiding unnecessary add-ons, there are multiple ways to ensure you’re getting the best possible value on your car insurance without sacrificing coverage.