What are the cheapest cars to insure?

According to our latest Premium Drivers Report (December 2020), the average cost of car insurance in the final quarter of 2020 (across all age groups) was £707, a rise of £6 compared to £701 from the previous quarter. If you’re in the market for a new vehicle, it’s worth considering the cars with cheapest insurance, to help keep your ongoing motoring costs as low as possible.

 

According to our latest Premium Drivers Report (December 2020), the average cost of car insurance in the final quarter of 2020 (across all age groups) was £707, a rise of £6 compared to £701 from the previous quarter. If you’re in the market for a new vehicle, it’s worth considering the cars with cheapest insurance, to help keep your ongoing motoring costs as low as possible.

 

Daniel Hutson
From the Motor team
10
minute read
Do you know someone who could benefit from this article?
Posted 11 FEBRUARY 2021

Top 10 cheapest cars to insure

According to our latest data, these are the top 10 cheapest new and used cars to insure:

Car model Average premium**
Dacia Sandero £368.71
Mini Clubman £370.26
Renault Captur £372.25
Fiat Panda £374.79
Kia ProCeed £386.32
Mercedes-Benz SLK £388.48
Citroen C3 £388.49
Hyundai Tucson £394.50
Ford EcoSport £394.53
Nissan Note £396.71

**Average price amount based on the top five quotes from Compare the Market data from 1 September 2020 to 31 November 2020. The average is based on all variations of the vehicle model and uses risk data from people with different age ranges, addresses and driving histories. You may find a cheaper or more expensive quote based on your circumstances.

1. Dacia Sandero

An affordable SUV with all the polish of its more expensive competitors, the Sandero proves that looks can be deceiving. Great value and perfect for drivers who prefer a better view of the road thanks to a 40mm raised ride height.

Lowest insurance group: 7

Starting price: From £7,995

Fuel efficiency: 53.3 mpg

2. Mini Clubman

A design classic packed with a surprising array of mod cons. A slick infotainment system features a 6.5” screen while Easy Open technology allows owners to open the split door at the boot by waving their foot under the car. Impressive tech and affordable to insure.

Lowest insurance group: 17

Starting price: From £22,395

Fuel efficiency: 40.9-44.8mpg

Mini Clubman Cooper, 2015-, Manual

3. Renault Captur

Named Small SUV of the Year 2020, the Captur is a surprisingly spacious family car. Its self-proclaimed muscular design and two-tone body makes the Renault a bit of a head-turner too.

Lowest insurance group: 9

Starting price: From £19,095

Fuel efficiency: 45.6-47.1 mpg

Renault, Captur Iconic Nav Energy TCE 90 S/S

4. Fiat Panda

Fiat boss Olivier François describes the Panda as “the official car for doing whatever the hell you like”. And while you might struggle to fit a family of five into the city car, it’s perfectly suitable for running the kids from A to B. Smart features include the interior’s 14 storage spaces and a large, old-fashioned open compartment on the passenger's side.

Lowest insurance group: 3

Starting price: From £10,255

Fuel efficiency: 43.5-44.1 mpg

5. Kia ProCeed

The Kia ProCeed looks like a cross between an estate and a coupe. With a long body that’s home to a spacious 594-litre boot and folding rear seats, it’s the ideal affordable family car.

Lowest insurance group: 13

Starting price: From £24,335

Fuel efficiency: Up to 56.5 mpg

6. Mercedes-Benz SLK

The ‘everyday’ roadster from Mercedes-Benz makes a surprise appearance on our cheapest cars to insure list. If you’re looking for fuel economy and family-friendly features look elsewhere. If fun and fashionable is more your thing, look no further.

Lowest insurance group: 37

Used price range: £2,040-£3,645

Fuel efficiency: 30-36 mpg

7. Citroen C3

The C3 Picasso is a practical, small MPV designed for the whole family yet sized on a supermini wheelbase. With the diesel capable of around 70mpg, it could help keep your fuel bills down as well as the cost of your insurance.

Lowest insurance group: 10

Used price range: approx. £6,600-£10,500

Fuel efficiency: 72.4 mpg

8. Hyundai Tucson

Hyundai’s flagship SUV has grown in size over the last few years and its new-look muscular frame hides some smart tech too. Features include an infotainment system controlled by a companion app and revolutionary half-mirror headlights nestled in the grille. 

Lowest insurance group: 16

Starting price: From £23,150

Fuel efficiency: 61.7 mpg

9. Ford EcoSport

This 5-door SUV is the perfect car for those who like to do things a little differently. Its raised ride height helps drivers gain a better view of the road, while the side-opening tailgate is pretty unconventional too. There’s no shortage of storage space, with a handy 20 cubby holes and compartments provided in the interior.

Lowest insurance group: 11

Starting price: From £20,845

Fuel efficiency: 47.1-47.9 mpg

10. Nissan Note

Although no longer in production, a used Note is a worthwhile buy for motorists on the lookout for a city car that’s equally at home on the motorway. It doesn’t win any prizes for a bold design or exciting extras but it’s fuel-efficient spacious inside and cheap to insure.

Lowest insurance group: 6

Used price range: approx. £5,400-£12,000

Fuel efficiency: 60.1 mpg

**Average price amount based on the top five quotes from Compare the Market data from 1 September 2020 to 31 November 2020. The average is based on all variations of the vehicle model and uses risk data from people with different age ranges, addresses and driving histories. You may find a cheaper or more expensive quote based on your circumstances.

***Not tested to latest standards.

What are the cheapest cars to insure for young drivers?

If you’re a new driver looking for a cheap car to insure, here’s our list of the cheapest to insure for young drivers:

Model Average Premium****
CITROEN C1 FEEL VTI 68 £538.02
PEUGEOT 107 ACTIVE £480.92
FORD KA EDGE £526.42
FIAT 500 LOUNGE £525.61
TOYOTA AYGO + £690.57


****Average price amount based on the top five quotes from Compare the Market data from 1 September 2020 to 31 November 2020. The average is based on all variations of the vehicle model and uses risk data from people with different age ranges, addresses and driving histories. You may find a cheaper or more expensive quote based on our circumstances.

What other costs should I consider?

While the cost of your insurance is probably going to be one of the major costs (besides the car itself of course…), you should be aware of how much running costs can add up. Here are some other things to keep in mind:

  • Tax – your car will need to be taxed every year. You can pay this monthly, although it may cost more overall.
  • Warranty – if you want cover for labour and parts on your car, you should consider this
  • Petrol – the everyday cost of driving. The higher your mileage, the more it’ll cost you in petrol.
  • MOT – the annual trip to the garage that can cost you around £50, along with anything that needs repairing.
  • Services – another regular garage trip that can cost you about £150, with any extra work costing more on top.
  • Surprises – issues with your car can hit you at any time. These range from the small things like a tyre puncture, to a full engine blowout. You should always have something set aside for an emergency.

If you’re a young driver, and don’t have the experience to know about these costs, have a look at our young drivers’ tool and find out how much you could expect to pay in a year for running your car.

What influences the cost of car insurance?

There are a number of factors that make car insurance more expensive for one person than another. These can include:

  • your age
  • your car make and model
  • your address
  • your average yearly mileage
  • your driving history

Every car is put in one of 50 car insurance groups by the Group Rating Panel. Insurance providers can use the panel’s recommendations or their own grouping system to set their prices. Vehicles in insurance group 1 are the cheapest cars to insure, while those in insurance group 50 are the most expensive.

Decisions on how to assign cars to different car insurance groups are based on several factors, including:

  • performance – powerful cars with big engines are put in higher groups as they’re considered more accident prone.
  • security features – cars with built-in alarms, high-security locks and immobilisers are looked on favourably by insurance providers.
  • cost of parts – the lower the cost of car parts if any repairs are needed, the lower the group rating will be.
  • car value – the value of the vehicle as new is used to assess how much the car would cost insurers to repair or replace.
  • safety rating – Euro NCAP ratings give an indication of how well a car will protect the driver, passengers and other road users in a collision.

Other contributing factors to the high cost of car insurance include:

  • The age of your car – this is a hard one to answer, because it works both ways. Older cars are naturally worth less, so they’re cheaper to replace, but they also have less modern safety and security features, which can also make them more of a risk. It really comes down the model of your car, in relation to its age, that can cause the cost to rise or fall.
  • Insurance premium tax of 12% levied by the Government. The standard rate is applied to general insurance premiums and has doubled from 6% in 2015.
  • The number of whiplash claims.
  • Changes to the rate of personal injury compensation that payments are based on. The current discount rate sits at minus 0.25%, having changed from 0.75% in July 2019. 

How does engine size impact car insurance?

Broadly speaking, the bigger engine your car has, the higher the insurance premium. A sporty model with a large 3.0-litre engine, for example, is likely to cost more to insure than an entry-level version of the same car with a smaller engine. That’s because motorists with powerful high-performance cars are deemed more likely to be involved in an accident. Drivers of these vehicles are considered a greater risk by insurance providers and given higher premiums.

And usually, larger engines are more expensive to replace, so this can also affect the price of car insurance. To see how much you should be paying for your car insurance, you can use our car insurance calculator.

How does security affect car insurance?

The higher level of security your car has, the more difficult it will be to steal, and this can be beneficial for your premium. Alarms, immobilisers or other built-in security features are all designed to deter thieves. Making sure your vehicle is fitted with a Thatcham-approved device can help bring down your insurance costs. Thatcham is a system that rates car security and helps car insurance providers calculate their prices. It has seven classes for car security, with number one rated the best.

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-operated car park or secure garage, it could be considered less of a risk by insurance providers.

How do car modifications affect your car insurance?

A car modification is any kind of alteration made to your vehicle that changes it from the manufacturer’s standard settings. This could be a performance change such as a souped-up exhaust, a cosmetic enhancement like tinted windows or a more practical change. For example, adding an immobiliser or parking sensors.

Any modification will almost certainly affect your insurance, so you’ll need to inform your provider about any changes you make. Otherwise, your cover could be invalid if you do make a claim. In most cases, modifications will increase your premium, either because they boost performance or make your car more appealing to thieves. But certain additions may bring down your quote if they're likely to, for example, reduce your chances of an accident.

Find out more in our guide to modified car insurance.

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 won’t take more than a few minutes of your time. Give us some details about you and your car, and we’ll provide you with a list of available quotes.

Looking for a quote?

Compare car insurance in minutes to see if you can save

Get a quote
Compare car insurance Get a quote