It’s no surprise that some cars cost more to insure than others, but if you’re searching for a new or used model this year and are looking to keep costs down, it’s worth knowing which are cheapest to cover.
Here, we explain which factors influence the cost of car insurance premiums and which models are currently the cheapest to insure.
Why are some cars cheaper to insure than others?
Insurers consider a wide range of factors when setting car insurance premiums. Some of these, such as your age or claims history, are out of your control, but you could reduce the cost by choosing a model that’s cheaper to insure.
For any type of insurance, premiums are based on how likely it is that someone will make a claim, and car insurance is no different. Insurers look at a range of data from accident rates to car specifications and repair times to work out how likely it is that a driver will make a claim, and how much this might cost.
Drivers of some sporty, high-speed models, may be more likely to make an expensive claim, which will hike up their car insurance premiums. On the other hand, a basic but reliable car with lower average speeds is less likely to need to make such an expensive claim so the premiums will usually be much lower.
In addition to the above, insurers will also take whether your car is brand new or second-hand into consideration. In most cases, you’ll pay more for your car insurance premiums if you bought your car secondhand, but not always.
Insurers use car insurance groups to decide on the cost of insurance for each make and model of car. The groups range from one to 50, with one being for the cars which are cheapest to insure and 50 the most expensive.
If you are in the market for a new car insurance policy but don’t know where to start looking, you can compare quotes from over 110 providers using this car insurance comparison tool. Simply enter your details to start comparing.
Car insurance groups explained
Car insurance groups are one of the ways that insurers work out car insurance premiums. Each car model is issued a group when it’s first released onto the market which identifies how likely it is that drivers will make a claim.
You can check which insurance group a particular model sits in on the Parkers car guide website.
Each car’s group is determined by a rating panel, which consists of members of the Association of British Insurers (ABI) and the Lloyds Market Association (LMA) and is supported by the motor insurers’ repair research centre, Thatcham Research. When working out groupings, the panel considers the following for specific makes and models:
New car value
How much the car costs is often a good indicator of how much it might cost to repair or replace. So if a car is particularly expensive to buy brand new, it’s likely to be in a more expensive car insurance group.
Performance
A high-performance car that has a powerful engine, high top speeds or fast acceleration is more likely to be involved in an accident so it will usually be in a higher insurance group.
Parts and repair costs
If a car has any specialist parts, it will cost more to repair or find replacement parts, so this will usually push up the car’s insurance cost. The amount of time it will cost to repair the vehicle is also a consideration, with the assumption that longer repairs will cost more money. So if your model typically has long repair times, this could mean it sits in a higher group.
Safety features
If a car has enhanced safety features, such as an autonomous emergency braking (AEB) system, this could mean that the chances of colliding with another car are lower, so it may sit in a lower insurance group.
Compare cheap car insurance quotes
Car insurance renewal premiums have a habit of increasing every year, even if you haven’t made a claim. Compare car insurance quotes from over 110 UK providers – you could save up to £490* per year.
*51% of consumers could save £490.26 on their Car Insurance. The saving was calculated by comparing the cheapest price found with the average of the next four cheapest prices quoted by insurance providers on Seopa Ltd’s insurance comparison website. This is based on representative cost savings from June 2023 data. The savings you could achieve are dependent on your individual circumstances and how you selected your current insurance supplier.
Car bumper compatibility
This looks at the alignment and structure of a car bumper. If the bumper meets the insurer’s criteria, it could lower the car’s insurance group. Bear in mind, too, that if a car has bumper sensors or other technology and they’re damaged, it could be costly to repair and bump up the cost of insurance.
Car Security
If a car has enhanced security features, such as an alarm, immobilisation systems and high-security door locks, this can lower its insurance group.
Cheapest new cars to insure
Of the newer cars in the cheapest insurance groups one and two, only a few are currently available to buy new.
| Car | Registration years | Trim | Specification | New price range | Used price range |
| Hyundai i10 Hatchback | 2020 onwards | Advance | Insurance group two, 1.0 and 1.2 Litre, 5 door, auto and manual models | £15,420 | £7,315 – £17,395 |
| Kia Picanto | 2017 onwards | GT-line | Insurance group two, 1.0 litre petrol engine, 5 door, 66 bhp, Auto model | £16,300 | £4,270 – £15,200 |
| 3 | Insurance group two, 1.0 litre petrol engine, 5 door, 66 bhp, Auto model | £16,650 | £4,270 – £15,200 | ||
| Kia Picanto X-Line (18 on) | 2018 onwards | X-line | Insurance group two, 1.0 litre, 5 door, auto model | £17,700 | £7,280 – £16,500 |
| SE | Insurance group two, 1.0 litre, 5 door, 75PS | £19,715 | £5,305 – £20,010 | ||
| SE Technology | Insurance group two, 1.0 litre, 5 door, 75PS | £20,785 | £5,305 – £20,010 |
Cheapest used cars to insure
There are far more options available if you’re looking for a used car that’s cheap to insure. All of the following cars are in car insurance group one, meaning they’re more likely to have the lowest insurance premiums. Bear in mind, though, that the type of car you choose is just one factor that contributes towards your premiums, so that doesn’t mean you won’t still be paying hundreds for your insurance.
| Car | Registration years | Trim | Specification | Used price range Jan 24 | |
| Fiat Panda | 2004 – 2011 | Active | 1.1 litre engine, 5 door, Eco, 54 bhp | £315 | £2,290 |
| Dynamic | 1.2 litre engine, 5 door, 60 bhp, AC, Skydome, Auto | ||||
| Vauxhall Corsa Hatchback | 2006 – 2014 | Expression | 1.0 litre 12v engine, 3 door, 59 bhp for standard Expression model and 64 bhp for ecoFLEX Expression | £410 | £6,495 |
| Chevrolet Spark | 2010 – 2015 | Standard | 1.0 litre engine, 5 doors, 67 bhp | £495 | £3,320 |
| Citroën C1 | 2005 – 2014 | Vibe, Airplay | 1.0 litre engine, 3 or 5 doors, 68 bhp | £545 | £5,045 |
| Volkswagen Fox | 2006 – 2012 | Standard trim, Urban | 1.2 litre engine, 3 door, 59 bhp | £565 | £1,665 |
| Kia Rio | 2011 – 2017 | 1 Air | 1.1 litre engine, 5 door, CRDi Air, 74 bhp | £1,365 | £10,355 |
| Skoda Citigo | 2012 – 2019 | S | 1.0 litre engine, 3 or 5 door, manual or automatic, 59 bhp | £1,570 | £9,550 |
| SE | 1.0 litre engine, 3 or 5 door, manual or automatic, stop/start technology, 59 bhp | ||||
| Sport | 1.0 litre engine, 3 or 5 door, 59 bhp | ||||
| Elegance | 1.0 litre engine, 3 or 5 door, stop/start technology, 73 bhp | ||||
| SEAT Mii | 2012 – 2019 | S, Ecomotive, Toca | 1.0 litre engine, 3 or 5 door, AC, 59 bhp | £1,685 | £9,165 |
| SE | 1.0 litre engine, 3 or 5 door, AC, 73 bhp | ||||
| Volkswagen Up | 2012 onwards | Take Up | 1.0 litre petrol engine, 3 or 5 door, 59 bhp. Includes models with Bluemotion and/or stop start technology. | £1,900 | £19,715 |
| Move Up | 1.0 litre petrol engine, 3 or 5 door, 59 bhp. Includes automatic and manual models as well as ones with Bluemotion and/or stop start technology. | ||||
| High Up | 1.0 litre petrol engine, 3 or 5 door, 59 bhp, stop start technology. | ||||
| Up Beats | 1.0 litre petrol engine, 3 or 5 door, 59 bhp, automatic. | ||||
| Hyundai i10 | 2014 – 2020 | S Air, S, SE, Premium | 1.0 litre engine, 5 door, Blue Drive S Air or S Air, 66 bhp | £2,450 | £12,835 |
| Skoda Fabia Hatchback | 2015 – 2021 | S | 1.0 litre engine, 5 door, 74 bhp | £2,770 | £14,230 |
| SE, SE Drive, Colour Edition | 1.0 litre engine, 5 door, 59 bhp | ||||
| Smart Forfour | 2015 – 2019 | Pure | 1.0 litre engine, 5 door, 70 bhp | £2,985 | £13,265 |
| Nissan Micra Hatchback | 2017 onwards | Visia, Visia+, Acenta Limited Edition | 1.0 litre petrol engine, 5 door, 70 bhp or IG 71. | £4,155 | £18,240 |
| Acenta | 1.0 litre petrol engine, 5 door, 70 bhp or IG 71, various audio and exterior packs. | ||||
| Ford Ka Plus | 2016 – 2019 | Studio | 1.2 litre engine, 5 door, Ti-VCT, 69 bhp | £4,460 | £8,825 |
| Volkswagen Polo Hatchback | 2017 onwards | S, Beats, SE Tech Edition | 1.0 litre petrol engine, 5 door, 64 bhp or 79 bhp, includes Evo model. | £6,405 | £21,895 |
| SE | 1.0 litre petrol engine, 5 door, 64, 74 or 79 bhp, includes Evo model. | ||||
| Match, United, Active | 1.0 litre petrol engine, 5 door, 79 bhp, Evo model. | ||||
| Hyundai i10 Hatchback | 2020 onwards | Advance, Premium | 1.0 litre engine, 5 door, auto models | £7,315 | £17,395 |
If your car insurance policy is up for renewal soon, don’t just sit back and wait for your existing insurer to auto-renew your policy. Although new rules have been introduced to ensure insurers highlight a customer’s previous year’s premium price against their renewal price, research by MoneySuperMarket.com found that nearly half of motorists (48%) didn’t recall seeing these notifications. Insurers typically reserve their best deals for new customers, meaning those who auto-renew end up paying much higher premiums than they’d be offered if they switch to a different insurer.
If your insurance isn’t up for renewal just yet, you can set up a reminder here and we’ll let you know when it’s time to search for a new deal.
Check out our article 10 practical tips to reduce your car insurance premiums for other ways to keep insurance costs down.
Or, if you’re looking to reduce your motoring costs more broadly, there might be changes you can make to the way you drive to keep down the amount of fuel you use – read more in our article 11 ways to keep fuel costs down. Finally, our article 12 ways to save on car and travel costs contains an overview on ways to save on travel across multiple modes of transport.
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Compare cheap car insurance quotes
Car insurance renewal premiums have a habit of increasing every year, even if you haven’t made a claim. Compare car insurance quotes from over 110 UK providers – you could save up to £490* per year.
*51% of consumers could save £490.26 on their Car Insurance. The saving was calculated by comparing the cheapest price found with the average of the next four cheapest prices quoted by insurance providers on Seopa Ltd’s insurance comparison website. This is based on representative cost savings from June 2023 data. The savings you could achieve are dependent on your individual circumstances and how you selected your current insurance supplier.