Looking for a Car That’s Cheap to Insure? Start Here.

Q: Which car is the cheapest to insure in the UK?

Cars in insurance group 1 tend to be the cheapest to insure. Popular low-cost models include the Citroën C1, Hyundai i10, and Skoda Fabia—especially entry-level trims. These vehicles are affordable to repair, low-risk for insurers, and ideal for new or budget-conscious drivers.

Q: Are older or newer cars cheaper to insure?

It depends. Older cars can sometimes be cheaper to insure because they’re worth less and often simpler to repair. However, newer models may come with modern safety and anti-theft features, which could reduce your risk—and your premium. The key is to compare insurance quotes across different models and ages.

Q: Is it cheaper to insure a second-hand car?

Yes, in many cases. Used cars often have lower market values than brand-new ones, which can make them less expensive to cover. But premiums also depend on the car’s condition, safety features, insurance group, and how often it’s been driven. It’s always smart to get a quote before buying.

Q: What is the lowest car insurance group?

The cheapest insurance group is Group 1. Cars in this group are typically small, low-powered, and affordable to repair—making them attractive options for first-time drivers or anyone looking to cut insurance costs.

If you’re thinking about buying your next car, don’t forget to consider insurance costs. For many drivers—especially younger or first-time buyers—insurance can be one of the most expensive parts of owning a car.
One of the smartest ways to keep your costs down is to choose a vehicle that falls into a lower insurance group. These cars are often smaller, less powerful, and more affordable to repair—making them less of a risk for insurers, and more budget-friendly for you.
Whether you’re just starting out behind the wheel or simply want to save money on your next policy, we’ve rounded up a selection of low-insurance group vehicles to help you get a better deal.

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What Goes Into Your Car Insurance Price?

When an insurer calculates your premium, they consider a mix of personal and vehicle-specific factors. Everything from your age and postcode to your driving record can impact how much you’ll pay—
but the car you drive plays a major role too.

1. Car value and repair costs

Newer or more expensive vehicles often cost more to insure due to higher replacement and repair expenses.

2. Safety and security

Cars equipped with features like lane assist, automatic emergency braking, and immobilisers may help reduce your premium by lowering the risk of claims.

3. Fuel type

Although electric cars are eco-friendly and cheaper to run day-to-day, they can sometimes carry higher insurance costs due to their purchase price and specialised repair needs.

Why compare car insurance with Clarity Compare?

Our car insurance comparison service is quick and easy to use. Just add your details and see if you can find the cheapest quote for your new car or beat your current provider’s renewal price.

We compare deals from some of the UK’s most trusted insurers to help you find a great price.

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^²Correct as of March 2025.
^¹Based on independent research by Consumer Intelligence in March 2025. 51% of customers could save up to £479 by using Clarity Compare.

Top 10 Budget-Friendly Cars to Insure in 2025 (UK Edition)

Looking for a car that won’t break the bank when it comes to insurance? Models placed in insurance group 1 tend to offer some of the lowest premiums—
making them a smart choice, especially for first-time or younger drivers.

1. Citroën C1

Group 1 Models: Vibe (2005–2008), Airplay (2006–2007) Compact, stylish, and economical, the C1 is ideal for urban driving. Its 1.0L engine keeps running costs and insurance low, making it perfect for city commutes.

2. Fiat Panda

Group 1 Models: Active (2004–2008), Active ECO (2008–2012) This boxy hatchback offers surprising interior space and simplicity at an affordable price. It's not flashy, but it’s practical and affordable to insure and run.

3. Ford Ka+

Group 1 Model: Studio (2016–2018) An upgrade from the classic Ford Ka, the Ka+ is roomier, refined, and cost-effective. A great choice for those wanting something basic yet comfortable.

4. Hyundai i10

Group 1 Models: Premium, S, SE, SE Blue Drive, S Air (2014–2016) Reliable, compact, and tech-savvy for its class, the i10 is a favourite among city drivers. It’s also known for excellent fuel economy and low ownership costs.

5. Kia Rio

Group 1 Model: 1 Air (diesel, 2015–2017) While not thrilling behind the wheel, the Rio stands out for being practical and economical, especially in diesel form. A solid pick for families on a budget.

6. Nissan Micra

Group 1 Models: Visia 71, Visia+ 71 (2016–2022) The Micra’s sharp modern styling and reliability make it a go-to for driving schools and learners alike. Affordable, efficient, and simple to handle.

7. Skoda Fabia

Group 1 Models: SE, SE Drive, Colour Edition MPI 60 (2019–2021) Great value and practical space are what define the Fabia. While it’s more understated than rivals, it’s easy to maintain and wallet-friendly for insurance.

8. Vauxhall Corsa

Group 1 Models: Expression (2006–2009), Expression Ecoflex (2010–2011) A classic UK favourite, the Corsa is known for being cheap to buy, cheap to fix, and easy to drive—ideal for first-time car owners.

9. Volkswagen Polo

Group 1 Models: S, SE, Beats, Active MPI 65, Match MPI EVO 80 (2018–present) Slightly more premium than others in this list, the Polo still delivers strong value. It’s safe, reliable, and easy to live with, though upfront costs may be a little higher.

10. Volkswagen Up!

Group 1 Model: Move Up! (2012–2016) Small but surprisingly spacious, the Up! is designed for tight city streets. Its compact design and low engine capacity keep insurance and running costs down.

^[5] As of May 9th 2025, Clarity Compare had an average rating of 4.9 out of 5 from 83,432 people on Trustpilot. The score 4.9 corresponds to the Star Label ‘Excellent’.

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How Your Driving Experience Impacts Car Insurance Costs

Your driving history is one of the biggest factors that insurers look at when deciding how much you’ll pay for car insurance. Everything from your age, the length of time you’ve held your licence, and any driving offences can directly affect your premium.

Clean driving record?

If you’ve avoided accidents, claims, and penalty points, you may benefit from a lower premium, especially if you’ve built up a No Claims Bonus over several years.

New or young driver?

Less experienced drivers are statistically more likely to be involved in accidents, so insurers often charge higher rates. Choosing a car from a lower insurance group can help balance this out.

Example Premiums by Age Group

(Based on data from March 2025 – 51% of customers achieved quotes below these figures)

Driver Type	Estimated Annual Premium
Learner drivers	Up to £660.19
Young drivers (17–24)	Up to £1,494.62
Drivers over 50	Up to £386.00
Drivers over 70	Up to £403.13

Does Engine Size Impact Your Car Insurance Cost?

Yes—engine size can significantly affect your car insurance premium. In general, vehicles with larger, more powerful engines are more expensive to insure. That’s because high-performance cars are seen as a greater risk for insurers—they’re capable of higher speeds and are more likely to be involved in serious accidents.

Plus, performance-focused vehicles often come with higher repair costs, especially if they use specialist parts.

On the flip side, cars with smaller engines—often found in compact or entry-level models—are usually cheaper to insure. They’re less powerful, which makes them lower-risk in the eyes of insurers and typically more affordable to fix if something goes wrong.

If you’re looking to keep your insurance costs down, choosing a car with a modest engine size (usually 1.0L–1.4L) is a good starting point.

Car Insurance FAQs – Cost-Saving Insights

Which car is the cheapest to insure in the UK?

Cars in insurance group 1 tend to be the cheapest to insure. Popular low-cost models include the Citroën C1, Hyundai i10, and Skoda Fabia—especially entry-level trims. These vehicles are affordable to repair, low-risk for insurers, and ideal for new or budget-conscious drivers.

Are older or newer cars cheaper to insure?

It depends. Older cars can sometimes be cheaper to insure because they’re worth less and often simpler to repair. However, newer models may come with modern safety and anti-theft features, which could reduce your risk—and your premium. The key is to compare insurance quotes across different models and ages.

Is it cheaper to insure a second-hand car?

Yes, in many cases. Used cars often have lower market values than brand-new ones, which can make them less expensive to cover. But premiums also depend on the car’s condition, safety features, insurance group, and how often it’s been driven. It’s always smart to get a quote before buying.

What is the lowest car insurance group?

The cheapest insurance group is Group 1. Cars in this group are typically small, low-powered, and affordable to repair—making them attractive options for first-time drivers or anyone looking to cut insurance costs.

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Looking for a Car That’s Cheap to Insure? Start Here.

What Goes Into Your Car Insurance Price?

1. Car value and repair costs

2. Safety and security

3. Fuel type

Why compare car insurance with Clarity Compare?

Automated quotes

Compare quotes quickly

See your savings

Top 10 Budget-Friendly Cars to Insure in 2025 (UK Edition)

1. Citroën C1

2. Fiat Panda

3. Ford Ka+

4. Hyundai i10

5. Kia Rio

6. Nissan Micra

7. Skoda Fabia

8. Vauxhall Corsa

9. Volkswagen Polo

10. Volkswagen Up!

Testimonials

What Our Customers Say?

Lucy H.

Mark J.

Ayesha K.

Tom R.

Natalie W.

How Your Driving Experience Impacts Car Insurance Costs

Clean driving record?

New or young driver?

Example Premiums by Age Group

Does Engine Size Impact Your Car Insurance Cost?

Car Insurance FAQs – Cost-Saving Insights

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