If your insurance renewal quote made you wince, you are not alone. UK car insurance premiums jumped sharply over the past two years, and millions of drivers are now looking at ways to cut costs without giving up their car altogether. One of the most powerful levers you have is the car itself. Pick the right model, and you can save hundreds of pounds every single year, before you even touch your excess or no-claims bonus.
This guide covers the cheapest cars to insure in the UK right now, explains how the insurance group system actually works, and tells you what else affects your premium so you can make a genuinely informed decision.
How UK Car Insurance Groups Work
Every car sold in the UK is placed into an insurance group by the Association of British Insurers (ABI) and Thatcham Research. The traditional scale runs from 1 to 50. Group 1 is the cheapest to insure. Group 50 is the most expensive.
The rating is based on several things: how much the car costs to repair, how long repairs typically take, the price of spare parts, the car’s performance figures, and its built-in safety and security features. Cars with small engines, widely available parts, and strong safety ratings tend to land in the lower groups.
One important update: cars registered after August 2024 are now assessed under a new Vehicle Risk Rating system on a scale of 1 to 99. Both systems are running in parallel during an 18-month transition period, so if you are buying a newer model, check which system applies.
A quick rule of thumb: aim for groups 1 to 10 if you want genuinely low premiums, especially if you are a younger or newer driver.
The Cheapest Cars to Insure in the UK Right Now
1. Hyundai i10 (Insurance Groups 1 to 6)
The Hyundai i10 is widely regarded as the cheapest new car to insure in the UK. Most trims sit between groups 1 and 6, and even the sportier N Line version only reaches group 10. Insurers like it because it has a small engine, excellent Euro NCAP safety ratings, and low repair costs. For new drivers or city commuters, it is a very strong choice. It also punches above its weight on equipment, with air conditioning, smartphone connectivity, and decent driver assistance features even in base trim.
2. Volkswagen Polo (Insurance Groups 3 to 9)
The Polo has long been a favourite for people who want something slightly more premium without paying premium insurance bills. Entry-level 1.0-litre trims start from group 3. It scores extremely well on safety tests and is built robustly, which is exactly what insurers want to see. Parts are plentiful,l and repair times are short. If you are buying used, the 65PS or 80PS 1.0-litre versions are the ones to target for the lowest groups.
3. Kia Picanto (Insurance Groups 1 to 5)
The Picanto is a budget-friendly city car that consistently appears in the cheapest insurance lists for good reason. Its small footprint, modest engine sizes, and low repair costs all contribute to a very low group rating. Kia’s 7-year warranty also suggests strong long-term reliability, which indirectly keeps ownership costs down. It is a particularly sensible option for urban drivers who do not need motorway cruising ability every week.
4. Toyota Aygo X (Insurance Groups 4 to 8)
The Aygo X replaced the original Aygo and brought a slightly more stylish look to the city car segment. It sits in a group of 4 to 8, depending on trim, which is very competitive. Toyota’s reputation for bulletproof reliability means parts are available and repair jobs are not complicated. Running costs across the board are low, and fuel economy is excellent for everyday use. It also benefits from Toyota Safety Sense as standard, which includes autonomous emergency braking and lane departure warning.
5. Skoda Fabia (Insurance Groups 2 to 11)
The Fabia is one of the best all-round small cars you can buy, and it happens to be cheap to insure too. Base trim versions start from group 2 on older models and group 5 on the current generation. It shares a lot of its mechanical components with the Volkswagen Polo, which means parts are easy to find and repairs are straightforward. Slightly more interior space than most of its rivals makes it a popular pick for people who want practicality without paying more for insurance.
6. Volkswagen Up! (Insurance Groups 1 to 2)
The VW Up is no longer in production as a new car, but there are plenty of good used examples available. The 60hp 1.0-litre petrol version sits in insurance group 2, making it one of the lowest-rated cars you can still realistically find on forecourts. If you want something even more unusual, the e-Up electric version sits in group 10, which is very low for an EV and a rare exception in that market.
7. Ford Fiesta (Insurance Groups 1 to 8 on used examples)
Ford stopped making the Fiesta new, but on the used market, et it remains one of the most sensible buys in the UK. Many variants fall into insurance groups 1 to 8. Parts are abundant, mechanics know the car inside out, and repair costs are low. For a used first car or a budget daily driver, it is hard to bet on total running costs.
Cheapest Cars to Insure: Quick Reference Table
| Car | Insurance Group Range | Best For |
|---|---|---|
| Hyundai i10 | 1 to 6 | New drivers, city use |
| Kia Picanto | 1 to 5 | Budget buyers, urban driving |
| Volkswagen Up! | 1 to 2 | Used car buyers |
| Skoda Fabia | 2 to 11 | Practicality + low cost |
| Volkswagen Polo | 3 to 9 | Quality-conscious buyers |
| Toyota Aygo X | 4 to 8 | Reliability seekers |
| Ford Fiesta (used) | 1 to 8 | Experienced used car buyers |
What Else Affects Your Premium Besides the Car?
Choosing a group 1 car does not guarantee a cheap quote. Insurers also look at these factors:
Your age and experience. Young drivers under 25 face significantly higher premiums regardless of the car they drive. The average 17-year-old pays around £1,932 per year, according to ABI data from Q3 2025. Choosing a group 1 car can bring that figure down considerably, but it will not reach the levels an experienced driver pays.
Your postcode. Where you live and park overnight matters. High-theft or high-accident areas push premiums up. If you can keep your car in a locked garage, tell your insurer.
Annual mileage. The fewer miles you declare, the lower your risk profile in the insurer’s eyes. Be accurate here, though. Understating mileage can invalidate a claim.
Your job title. What you call your occupation on the form can move the needle. A cleaner may pay less than a nightclub manager for the same car. Use the job title that most accurately describes your role without embellishing it.
Your voluntary excess. Agreeing to pay more out of pocket if you make a claim usually lowers your premium. Just make sure you can genuinely afford the figure you choose.
No-claims discount. Each year without a claim adds to your discount. Protecting it can be worth paying for once you build up four or five years.
Tips to Lower Your Insurance Further
- Always use a comparison site, but also check the insurer’s own website directly. Some deals are not listed on aggregators.
- Pay annually rather than monthly if you can. Monthly payments typically include an interest charge that adds 20 to 30 per cent to your total cost.
- Adding an experienced named driver to the policy can reduce premiums for young drivers. However, never list an experienced driver as the main driver if they are not. That is called fronting, and it is illegal.
- Consider a telematics or black box policy if you are a new driver. These monitor your driving and reward safer habits with lower renewals.
- Check whether any professional memberships or employer schemes offer discounts through specific insurers.
Conclusion
The car you choose is one of the most direct ways to control what you pay for insurance every year. Models like the Hyundai i10, Kia Picanto, and Volkswagen Up sit at the very bottom of the insurance group scale and can save you a significant amount compared to even a mid-range family hatchback. That said, the car is just one part of the equation. Getting the rest of the details right on your policy, from your job title to your annual mileage, can make just as big a difference. Do your research before you buy, compare quotes with the specific model in mind, and you will be in the best position to keep your running costs genuinely low.
Frequently Asked Questions
What is the single cheapest car to insure in the UK?
The Hyundai i10 is consistently rated as the cheapest new car to insure, sitting in insurance groups 1 to 6.
What insurance group is cheapest in the UK?
Group 1 is the cheapest. Cars in groups 1 to 10 generally attract the lowest premiums.
Are small cars always cheaper to insure?
Usually,y yes, because they have smaller engines, lower repair costs, and lower part prices, but your personal details also affect the final premium.
Is it cheaper to insure a new or used car?
It depends on the model and your circumstances. A new car with strong safety tech can be cheaper to insure than an older car with no modern safety features.
What is the cheapest car to insure for a 17-year-old in the UK?
The Hyundai i10, Kia Picanto, and Volkswagen Up are among the best options, as their low insurance groups help offset the age-related premium surcharge.
