Choosing a car with low insurance costs is a smart move, especially for new drivers or those looking to keep their motoring expenses down. Insurance premiums are affected by factors like engine size, safety features, repair costs, and overall reliability.
If you’re after an affordable car to insure, the best options are typically in insurance groups 1–10. These models tend to have smaller engines, strong safety records, and lower repair costs.
Below, we’ve put together a list of some of the cheapest cars to insure, highlighting why they’re great choices and what makes them so affordable.
1. Hyundai i10
A small but mighty city car that’s practical, efficient, and cheap to insure.
The Hyundai i10 has long been a favourite among city drivers and first-time car owners. It’s compact enough to make parking a breeze, yet surprisingly roomy inside. Hyundai has designed the i10 with efficiency in mind, offering low fuel consumption and maintenance costs—making it a great all-rounder for those wanting an affordable car with minimal hassle.
Top features
- Small and easy to manoeuvre.
- Surprisingly spacious interior for a city car.
- 1.0-litre petrol engine for fuel efficiency.
- Standard features include air conditioning and electric windows.
Why it’s a cheap car to insure
- Falls into insurance group 1, meaning lower premiums.
- Low-cost parts and repairs.
- Strong safety ratings reduce accident-related claims.
Why it’s popular
The i10 is perfect for city driving and small enough to fit into tight parking spaces while still offering plenty of interior room. It’s also a solid choice for new drivers looking for an easy-to-drive, low-maintenance first car.
2. Volkswagen Polo
A premium-feeling supermini with excellent reliability and safety.
The Volkswagen Polo is a step up from the average small car, offering a refined driving experience with high-quality interior materials and modern technology. Despite its more premium feel, it remains a budget-friendly option in terms of insurance. The Polo’s solid build quality and strong safety features make it an attractive choice for families and young drivers alike.
Top features
- Comfortable and well-built interior.
- 1.0-litre engine offers a balance of power and efficiency.
- Comes with advanced safety features, including autonomous emergency braking.
- Spacious enough for small families or long journeys.
Why it’s a cheap car to insure
- Placed in insurance group 3, which is still affordable.
- Reliable, reducing the risk of expensive breakdowns.
- Strong safety ratings help lower insurance costs.
Why it’s popular
The Polo combines affordability with quality, making it a great choice for those who want a practical yet slightly more upmarket small car.
3. Skoda Fabia
A no-nonsense, practical supermini with great reliability.
The Skoda Fabia is all about practicality and space. It’s larger than many other cars in this category, meaning passengers get more legroom, and there’s a decent-sized boot for luggage or shopping. While it may not be the most exciting car to drive, it’s efficient, easy to maintain, and, most importantly, cheap to insure.
Top features
- Spacious interior with good headroom and legroom.
- 1.0-litre MPI engine balances performance and fuel economy.
- Stability control and multiple airbags for added safety.
- Low maintenance costs make it a budget-friendly choice.
Why it’s a cheap car to insure
- Falls into one of the lower insurance groups due to its safety features.
- Simple mechanics mean cheaper repair costs.
- Modest engine size reduces the risk of high-speed accidents.
Why it’s popular
It’s an ideal choice for those who need a practical, spacious car with great reliability and low insurance costs.
4. Kia Picanto
A compact and stylish city car with a long warranty.
The Kia Picanto is one of the best small cars for city driving. It’s compact, fuel-efficient, and packed with features that make it feel more premium than its budget-friendly price suggests. One of its biggest selling points is Kia’s industry-leading seven-year warranty, meaning it offers excellent value for money in the long run.
Top features
- Compact and stylish with a surprisingly spacious cabin.
- 1.0-litre petrol engine for excellent fuel economy.
- High-tech safety features like hill-start assist.
- Seven-year warranty for long-term peace of mind.
Why it’s a cheap car to insure
- One of the most affordable cars in insurance group 1.
- Small engine means lower risk of high-speed crashes.
- Cheap to repair with widely available parts.
Why it’s popular
The Picanto is a great choice for young drivers and city commuters looking for an affordable yet well-equipped car with low running costs.
5. Toyota Aygo X
A funky-looking city car with Toyota’s legendary reliability.
The Toyota Aygo X takes everything good about the original Aygo and adds a more SUV-inspired design. Its raised ride height gives drivers better visibility, making it great for city driving. The 1.0-litre engine is super efficient, and Toyota’s reputation for reliability means maintenance costs stay low.
Top features
- Eye-catching SUV-style design.
- Small but economical 1.0-litre engine.
- Advanced safety features, including lane departure warning.
- Compact and easy to park in tight spaces.
Why it’s a cheap car to insure
- Falls into a low insurance group due to its efficient engine.
- Toyota’s excellent reliability means fewer breakdown claims.
- Advanced safety features reduce accident risk.
Why it’s popular
The Aygo X is a fun, practical, and stylish option for city drivers who want a bit of personality in their car.
6. Dacia Sandero
The UK’s most affordable new car with impressively low running costs.
The Dacia Sandero is one of the cheapest new cars you can buy, but it doesn’t feel cheap. It’s surprisingly spacious, reliable, and has everything you need without unnecessary extras. If you’re looking for an affordable, no-frills car that gets the job done, the Sandero is hard to beat.
Top features
- Spacious and practical interior.
- 1.0-litre engine keeps fuel costs low.
- Simple design, meaning fewer things to go wrong.
- One of the cheapest brand-new cars on the market.
Why it’s a cheap car to insure
- Basic engine options mean lower insurance costs.
- Simple mechanics keep repair costs down.
- Strong safety ratings contribute to lower premiums.
Why it’s popular
The Sandero is ideal for drivers who want a budget-friendly, reliable car with minimal running costs.
7. Renault Clio
A stylish supermini with plenty of tech and low running costs.
The Renault Clio has been a popular choice for UK drivers for decades, thanks to its balance of style, practicality, and affordability. The latest models come packed with technology and safety features while maintaining the low insurance costs that make it such an appealing option. With a smooth ride, great fuel efficiency, and a well-designed interior, the Clio is a great all-rounder.
Top features
- Modern, comfortable interior with premium touches.
- 1.0-litre petrol engine for a good balance of power and efficiency.
- Strong safety package, including lane-keeping assist.
- Great technology, including an intuitive infotainment system.
Why it’s a cheap car to insure
- Low-cost repairs and maintenance.
- Falls into insurance group 3–5 depending on the model.
- High safety rating means fewer expensive claims.
Why it’s popular
The Clio is perfect for those who want a small car that looks stylish, drives well, and has plenty of modern features without paying over the odds for insurance.
8. Seat Ibiza
A sporty yet affordable hatchback with great handling.
If you’re looking for a car that’s cheap to insure but still fun to drive, the Seat Ibiza is a fantastic option. Known for its sharp handling and stylish design, the Ibiza offers a slightly sportier driving experience than some of its rivals while still maintaining low insurance costs. With plenty of interior space and a well-built cabin, it’s a great option for young drivers or anyone after a budget-friendly supermini.
Top features
- Sharp handling and responsive steering.
- 1.0-litre engine balances power and economy.
- Spacious interior with a well-designed layout.
- Great for both city and motorway driving.
Why it’s a cheap car to insure
- Reliable engine with cheap repair costs.
- Strong safety record keeps insurance rates down.
- Falls into lower insurance groups for smaller engine models.
Why it’s popular
The Ibiza is an ideal choice for drivers who want an affordable, sporty-feeling car that’s still practical and cheap to run.
9. Ford Fiesta
The UK’s best-selling car that’s fun, practical, and affordable.
The Ford Fiesta has been a firm favourite on UK roads for years, and for good reason. It offers a fantastic driving experience, a well-designed interior, and a strong safety record. The 1.0-litre EcoBoost engine provides impressive fuel economy without compromising on performance. Thanks to its solid build quality and reasonable repair costs, the Fiesta remains one of the cheapest cars to insure.
Top features
- Fun to drive with excellent handling.
- 1.0-litre EcoBoost engine for power and efficiency.
- Practical interior with good boot space.
- High-tech safety features come as standard.
Why it’s a cheap car to insure
- Insurance group varies from 3–7 depending on the model.
- Excellent reliability reduces breakdown-related claims.
- High safety rating helps lower premiums.
Why it’s popular
The Fiesta is a fantastic choice for those who want an affordable car that’s great to drive, well-equipped, and easy on the wallet when it comes to insurance.
10. Peugeot 208
A stylish and modern hatchback that doesn’t break the bank.
The Peugeot 208 stands out in the supermini category with its sleek design, high-tech interior, and excellent fuel efficiency. It offers a smooth and comfortable driving experience, making it a great option for city driving and longer trips alike. Despite its upmarket feel, the smaller engine versions of the 208 keep insurance costs surprisingly low, making it an attractive option for budget-conscious drivers.
Top features
- Sleek and stylish exterior design.
- Comfortable and modern interior with digital driver display.
- Available in petrol and electric versions.
- Excellent fuel efficiency.
Why it’s a cheap car to insure
- The smaller engine versions fall into insurance group 3–5.
- Reliable mechanics and low-cost servicing.
- High safety ratings contribute to lower premiums.
Why it’s popular
The 208 is perfect for drivers who want a small car that feels a little more premium, with great fuel economy and low insurance costs to match.
Final notes
If you’re looking for a car with low insurance costs, sticking to models with small engines, strong safety ratings, and affordable repair costs is the way to go. Whether you need a compact city car like the Kia Picanto or a practical supermini like the Skoda Fabia, there are plenty of options to suit different needs and budgets.
