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What are the cheapest cars to insure?

What are the cheapest cars to insure?

According to our latest Premium Drivers Report (June 2020), the average cost of car insurance in the second quarter of this year (across all age groups) was £702, down from £755 in 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
6
minute read
Do you know someone who could benefit from this article?
Posted 13 AUGUST 2020

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 insurance providers 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:

  • 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. 

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**
Kia Sportage £366.36
Dacia Sandero £376.83
Citroen C3 Picasso £385.70
Fiat Panda £389.60
Vauxhall Mokka £391.30
Ford C-Max Titanium £391.76
Honda Jazz £394.64
Mini Countryman Cooper £395.64
Mini Cooper Cabriolet £411.78
Honda CR-V £413.76

**Average price amount based on the top five quotes from Compare the Market data from 1 March 2020 to 1 June 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. Kia Sportage 

Kia’s cheapest car to insure also delivers value for money behind the wheel. A mid-sized sport utility vehicle (SUV) from Kia with all the connectivity and comfort you’d expect from a vehicle at a higher price point. The South Korean manufacturers have even outdone their rivals on leg room too. The ideal family car for the savvy buyer.

Lowest insurance group: 14

Starting price: From £23,445

2. Dacia Sandero

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

Lowest insurance group: 2

Starting price: From £6,995

3. Citroen C3 Picasso

A practical, small multi-purpose vehicle (MPV), Citroen has designed a car 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. £1,000-£10,000

4. Fiat Panda

Fiat boss Olivier François has described 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 on this Fiat include the interior’s 14 storage spaces and a large, old-fashioned open compartment on the passenger's side.

Lowest insurance group: 4

Starting price: From £8,896

5. Vauxhall Mokka

The Vauxhall Mokka takes design inspiration from the Astra. It’s a roomier, more family-friendly vehicle with a refined interior. New models are available as all electric vehicles, while traditional engines can be picked up through a second-hand deal.

Lowest insurance group: 13

Used price range: approx. £5,000-£10,000

6. Ford C-Max Titanium

Ford’s C-Max has earned a reputation as a fun ride and the titanium trim adds a host of neat extras for an even more enjoyable Ford driving experience. Automatic lights, automatic wipers, 17-inch alloys and a handy push to start button have been added to the MPV, which boasts 432 litres of boot space.

Lowest insurance group: 21

Used price range: approx. £4,500-£15,000

7. Honda Jazz

Honda’s supermini is a scaled-down yet spacious MPV. The latest model features a hybrid powertrain, improved seating and a minimal dash for a family car, with added style.

Lowest insurance group: 15

Starting price: From £18,985

8. Mini Countryman Cooper

A Mini design classic packed with a surprising array of mod-cons. Whether it’s the adaptive LED headlights that take your fancy, or the Easy Opener technology that allows owners to open the boot by waving their foot under the car, you can be confident about getting an affordable insurance deal.

Lowest insurance group: 14

Starting price: From £24,295

9. Mini Cooper Cabriolet

As far as smaller style-led cars go, the Mini Cooper Cabriolet is one of the best. An electric roof that opens in 18 seconds and optional smart infotainment systems only add to the fun. For those worried about damaging their trademark Union Jack Headlights, rear parking distance control comes as standard.

Lowest insurance group: 18

Starting price: From £20,630

10. Honda CR-V

The CR-V is one of the world’s best-selling SUVs. Japanese manufacturer Honda has combined its trademark top-notch build quality with a vehicle that can comfortably transport the whole family from A to B. If you’re looking for added convenience, the SE trim offers Apple CarPlay and Android Auto.

Lowest insurance group: 24

Starting price: From £27,270

**Average price amount based on the top five quotes from Compare the Market data from 1 March to 1 June 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.

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.

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