At a glance
The cost of car insurance can depend on several factors, including the type of car you drive.
If you’re in the market for a new car, it’s worth checking its insurance group to see how much it might cost you to insure.
Cars are assigned to one of 50 insurance groups based on factors like price, repair costs, performance, safety and security features.
Cars in lower insurance groups typically cost less to insure, with cars in group 1 tending to be the cheapest of all.
However, the cost of your car insurance is also determined by other factors including where you live, your age and your driving history.
To help, we’ve pulled together a list of some of the cheapest cars to insure in the UK, including models in the lowest insurance group.
How is my car insurance premium calculated?
The price of your car insurance is calculated using many factors, including your age, where you live and your driving history. But the car you drive also plays a big role.
New cars can be more expensive to insure because they’re more valuable. They could have higher repair costs and may be more expensive to replace for insurance providers. However, they also tend to have better safety and security features. And a lower risk of accidents and theft could also mean lower premiums.
Meanwhile, electric car insurance may be more expensive for a petrol or diesel engine model – even though it might be better for the environment. That’s because electric cars tend to have a higher price tag and repair costs.
But if you’re in the market for new wheels, the best way to check how expensive a car is likely to be to insure is to check the car’s insurance group.
How does my driving history affect my car insurance?
Your age, how long you’ve had your licence and any penalty points or convictions are all taken into consideration when insurance providers calculate your premium. If you have a clean driving history, with a lengthy no claims history, you could be rewarded with cheaper car insurance.
If you’re young or new to driving, you’ll face higher premiums compared to more experienced drivers. But you could get a more affordable quote by choosing a car in a low insurance group.
Here are some typical prices for drivers at different ages and/or levels of experience:
Learner drivers | Young drivers | Over 50s | Over 70s |
|---|---|---|---|
£612[1] | £1,340[2] | £369[3] | £398[4] |
[1]51% of learner drivers could achieve a quote of up to £611.98 for their car insurance based on Compare the Market data in June 2026.
[2]51% of young drivers between 17-24 years old could achieve a quote of up to £1339.58 for their car insurance based on Compare the Market data in June 2026.
[3]51% of over 50s could achieve a quote of up to £368.93 for their car insurance based on Compare the Market data in June 2026.
[4]51% of over 70s could achieve a quote of up to £397.01 for their car insurance based on Compare the Market data in June 2026.
Other factors affect the premium you’ll pay too, not just your age and experience. These include engine size, security features and insurance group.
How does engine size affect car insurance?
Broadly speaking, the bigger the engine your car has, the higher the insurance premium.
That’s because motorists with powerful high-performance cars are deemed more likely to be involved in an accident, and high-performance cars generally cost more to repair. Small cars with smaller engines are likely to be cheaper to insure.
How does security affect car insurance?
Alarms, immobilisers and other built-in security features are all designed to deter thieves. Installing or upgrading these security measures could see your insurance provider offer you a cheaper premium.
Where you keep your car when it’s not in use will also affect your premium. If it’s parked on the street, it’s more likely to be targeted by thieves. But if it’s kept in a CCTV-monitored car park or secure garage, it could be considered less of a risk by insurance providers.
How does the insurance group affect your car insurance premium?
All cars are placed into a car insurance group. These range from 1 to 50. Generally speaking, cars in low insurance groups are cheaper to insure, while models in the highest groups are among the most expensive.
Car insurance groups are decided based on factors like:
Value of your car when new
Complexity of repairs and cost of spare parts
Safety and security features
Performance of the car, including its speed and acceleration.
Cheapest cars to insure in 2025
We’ve put together a list of some of the cheapest cars to insure in the UK. This includes some of the bestselling cars that are allocated to the lowest car insurance group (group 1), including new and used cars.
Remember that, while lower insurance group cars can be the cheapest cars to insure for new drivers, the price of your insurance will also depend on your personal details and driving history.
1. Citroën C1
Vibe (2005-2008) and Airplay (2006-2007) models are in group 1
With its compact size, the Citroën C1 makes for a great city runner. While it may be small, it’s smart with the space it does have and offers a modern look. Its 1.0-litre petrol engine means it doesn’t have a lot of power behind it, but it’s cheap to run.
2. Fiat Panda
Active (2004-2008) and Active ECO (2008-2012) models are in group 1
Thanks to its shape and design, the Fiat Panda is quite roomy for a hatchback. It’s a relatively cheap model, which means it’s fairly basic in terms of features, but it handles nicely and offers good value for money.
3. Ford Ka+
Studio model (2016-2018) is in group 1
That plus sign has brought the Ka a long way. It’s more spacious and stylish than its predecessor, but remains an affordable, comfortable, albeit simple, car.
4. Hyundai i10
Premium, S, SE, SE Blue Drive and S Air models (2014-2016) are in group 1
Ideal as a small city car, this practical and reliable hatchback has a smart design and features plenty of modern tech, all at a competitive price.
5. Kia Rio
1 Air (diesel) model (2015-2017) is in group 1
As a cheap family hatchback, the Kia Rio offers style and a competitive array of features. Although it might not be the most exciting to drive, the diesel models in particular offer good fuel economy and it’s competitively priced.
6. Nissan Micra
Visia 71 and Visia+ 71 (2016-2022) models are in group 1
The newer Nissan Micra has a sharper, edgier design than its predecessors, making it a more modern-looking hatchback. The Micra is known for being approachable, reliable and cheap to run – hence its popularity with driving schools. It’s a little bit tight for space in the back, though.
7. Skoda Fabia
SE, SE Drive and Colour Edition MPI 60 models (2019-2021) are in group 1
A great value-for-money hatchback, the Skoda Fabia is cheap to buy and to run. It also has plenty of room for a hatchback, with a comfortable and stylish interior. True, it might lag slightly behind some of its competitors in terms of modern features. But if you’re on a budget, this could still be a great no-nonsense choice.
8. Vauxhall Corsa
Expression (2006-2009) and Expression Ecoflex (2010-2011) models are in group 1
A regular sight on UK roads, the Vauxhall Corsa is a popular choice for young drivers looking for a cheap first car. It’s practical and easy to drive and, thanks to its popularity, there are plenty of used Corsas on the market.
9. Volkswagen Polo
S, SE, Beats, Active MPI 65 models and Match MPI EVO 80 models (2018-present) are in group 1
Another familiar model in the UK, the Volkswagen Polo is known for being roomy (for its size), comfortable and easy to drive. It may be a little more expensive than other group 1 models on this list, but maintenance and repair costs tend to be economical.
10. Volkswagen Up!
Move Up! model (2012-2016) is in group 1
The VW UP! is smart, smooth and more spacious on the inside than you’d expect. And that small size makes it ideal for a city runaround car.
How can I compare car insurance quotes?
One of the quickest ways to make sure you get great value car insurance is to compare quotes. It’s simple to do and it won’t take more than a few minutes of your time to get quotes from a range of providers.
Give us some details about you and your car, and we’ll provide you with a list of suitable quotes. Your results will start with the cheapest insurance available for you from our panel.
FAQs
Which car is the cheapest to insure in the UK?
The cheapest cars to insure in the UK are typically those assigned to car insurance group 1. Broadly speaking, the lower the insurance group a car is in, the cheaper it will be to insure.
Bear in mind that different versions of the same car model can be placed in different insurance groups. For example, the Volkswagen Up! Move Up! model (released from 2012-2016) is in car insurance group 1 while the Volkswagen Up! GTi 115 model (2018-2020) is in insurance group 17.
Are old or new cars cheaper to insure?
There’s no simple answer as to which is cheaper to insure when it comes to new cars vs used cars.
In some ways, an older car can be cheaper to insure than a new car because it’s typically worth less, may be less attractive to thieves and easier to repair. On the other hand, newer cars typically have much better security and safety features.
Are second-hand cars cheaper to insure?
Second-hand cars are not necessarily cheaper to insure. How much it costs to insure a particular car depends on several factors including value, repair costs, engine size, safety and security features.
There are second-hand cars in low insurance groups and second-hand cars in higher insurance groups. Similarly, you can buy safe and economical cars brand new that are in low insurance groups or high-performance, high-value brand-new cars in high insurance groups.
What's the cheapest insurance group?
Group 1 cars are the cheapest to insure. Bear in mind, though, that the price you pay for your car insurance premiums is also influenced by other factors including your age, postcode, mileage and driving history.
Looking for something else?
Amy helps make sure you get the best value when choosing insurance. Thanks to more than four years’ experience at Compare the Market, she understands what people look for, working closely with insurance providers to offer you deals and services that are fair, easy to understand and right for your needs.
Stephen Maunder is an experienced personal finance editor, having spent more than a decade working for consumer print and online titles. He won several industry awards for his personal finance features at Which?, before becoming Deputy Editor at Compare the Market.
Rebecca Goodman is a freelance financial journalist who specialises in insurance, personal finance and consumer affairs.
Our content is written by a Compare the Market expert, backed by data and enhanced by technology. Find out how we ensure accuracy and quality in our Editorial Guidelines.
