It’s no surprise that some cars cost more to insure than others, but if you’re searching for a new model and looking to keep costs down, it’s worth knowing which are cheapest to cover.

Here, we explain which factors influence the cost of car insurance premiums and which models are currently the cheapest to insure.

Why are some cars cheaper to insure than others?

Insurers consider a wide range of factors when setting car insurance premiums. Some of these, such as your age or claims history, are out of your control, but you could reduce the cost by choosing a model that’s cheaper to insure.

For any type of insurance, premiums are based on how likely it is that someone will make a claim, and car insurance is no different. Insurers look at a range of data from accident rates to car specifications and repair times to work out how likely it is that a driver will make a claim, and how much this might cost. 

Drivers of some sporty, high-speed models, may be more likely to make an expensive claim, which will hike up their car insurance premiums. On the other hand, a basic but reliable car with lower average speeds is less likely to need to make such an expensive claim so the premiums will usually be much lower.

In addition to the above, insurers will also take whether your car is brand new or second-hand into consideration. In most cases, you’ll pay more for your car insurance premiums if you bought your car secondhand, but not always.

Insurers use car insurance groups to decide on the cost of insurance for each make and model of car. The groups range from one to 50, with one being for the cars which are cheapest to insure and 50 the most expensive.

If you are in the market for a new car insurance policy but don’t know where to start looking, you can compare quotes from over 110 providers using this car insurance comparison tool. Simply enter your details to start comparing.

Car insurance groups explained

Car insurance groups are one of the ways that insurers work out car insurance premiums. Each car model is issued a group when it’s first released onto the market which identifies how likely it is that drivers will make a claim. 

You can check which insurance group a particular model sits in on the Parkers car guide website. 

Each car’s group is determined by a rating panel, which consists of members of the Association of British Insurers (ABI) and the Lloyds Market Association (LMA) and is supported by the motor insurers’ repair research centre, Thatcham Research. When working out groupings, the panel considers the following for specific makes and models:

New car value

How much the car costs is often a good indicator of how much it might cost to repair or replace. So if a car is particularly expensive to buy brand new, it’s likely to be in a more expensive car insurance group.

Performance

A high-performance car that has a powerful engine, high top speeds or fast acceleration is more likely to be involved in an accident so it will usually be in a higher insurance group.

Parts and repair costs

If a car has any specialist parts, it will cost more to repair or find replacement parts, so this will usually push up the car’s insurance cost. The amount of time it will cost to repair the vehicle is also a consideration, with the assumption that longer repairs will cost more money. So if your model typically has long repair times, this could mean it sits in a higher group.

Safety features

If a car has enhanced safety features, such as an autonomous emergency braking (AEB) system, this could mean that the chances of colliding with another car are lower, so it may sit in a lower insurance group.

Compare cheap car insurance quotes

Car insurance renewal premiums have a habit of increasing every year, even if you haven’t made a claim. Compare car insurance quotes from over 110 UK providers – you could save up to £490* per year.

Compare quotes now


*51% of consumers could save £490.26 on their Car Insurance. The saving was calculated by comparing the cheapest price found with the average of the next four cheapest prices quoted by insurance providers on Seopa Ltd’s insurance comparison website. This is based on representative cost savings from June 2023 data. The savings you could achieve are dependent on your individual circumstances and how you selected your current insurance supplier.

Car bumper compatibility

This looks at the alignment and structure of a car bumper. If the bumper meets the insurer’s criteria, it could lower the car’s insurance group. Bear in mind, too, that if a car has bumper sensors or other technology and they’re damaged, it could be costly to repair and bump up the cost of insurance.

Car Security

If a car has enhanced security features, such as an alarm, immobilisation systems and high-security door locks, this can lower its insurance group.

Cheapest new cars to insure

Of the newer cars in the cheapest insurance groups one and two, only the Kia Picanto 2, 3 and GT-line models are currently available to buy new.

CarRegistration yearsTrimSpecificationNew price rangeUsed price range
Kia Picanto

2017

onwards

2Insurance group one, 1.0 litre petrol engine,  5 door, 4 seats, 66 bhp, auto model.From £14,165£5,225 – £17,175
GT-lineInsurance group two, 1.0 litre petrol engine, 5 door, 66 bhp, Auto model£16,000£5,225 – £17,175
3Insurance group two, 1.0 litre petrol engine, 5 door, 66 bhp, Auto model£16,350£5,225 – £17,175

Set your free car insurance reminder​

Let us know when your car insurance expires and we’ll remind you when it’s time to check for a better deal.

By providing us your email address you agree to receive emails and communications from us and acknowledge that your personal data will be used in accordance with our Privacy Policy and Terms and Conditions. You can unsubscribe at any time by following the link in our emails.

Success! Your reminder has been set.

Cheapest used cars to insure

There are far more options available if you’re looking for a used car that’s cheap to insure. All of the following cars are in car insurance group one, meaning they’re more likely to have the lowest insurance premiums. Bear in mind, though, that the type of car you choose is just one factor that contributes towards your premiums, so that doesn’t mean you won’t still be  paying hundreds for your insurance.

CarRegistration yearsTrimSpecificationUsed price range
Fiat Panda2004 – 2011Active1.1 litre engine, 5 door, Eco, 54 bhp£390 – £2,995
Dynamic1.2 litre engine, 5 door, 60 bhp, AC, Skydome, Auto£390 – £2,995
Vauxhall Corsa Hatchback2006 – 2014Expression1.0 litre 12v engine, 3 door, 59 bhp for standard Expression model and 64 bhp for ecoFLEX Expression£430 – £7395
Volkswagen Fox2006 – 2012Standard, Urban1.2 litre engine, 3 door, 59 bhp£785 – £2,425
Chevrolet Spark2010 – 2015Standard1.0 litre engine, 5 doors, 67 bhp£755 – £4,420
Citroën C12005 – 2014Vibe, Airplay1.0 litre engine, 3 or 5 doors, 68 bhp

£670 – £5,635

Kia Rio2011 – 2017Air1.1 litre engine, 5 door, CRDi Air, 74 bhp

£1,725 – £12,760

Skoda Citigo2012 – 2019S1.0 litre engine, 3 or 5 door, manual or automatic, 59 bhp

£1,895 – £11,375

SE1.0 litre engine, 3 or 5 door, manual or automatic, stop/start technology, 59 bhp

£1,895 – £11,375

Sport1.0 litre engine, 3 or 5 door, 59 bhp

£1,895 – £11,375

Elegance1.0 litre engine, 3 or 5 door, stop/start technology, 73 bhp

£1,895 – £11,375

SEAT Mii2012 – 2019S, Ecomotive, Toca1.0 litre engine, 3 or 5 door, AC, 59 bhp

£2,185 – £10,695

SE1.0 litre engine, 3 or 5 door, AC, 73 bhp

£2,185 – £10,695

Volkswagen Up2012 onwardsTake Up1.0 litre petrol engine, 3 or 5 door, 59 bhp. Includes models with Bluemotion and/or stop start technology.

£2,205 – £20,825

Move Up1.0 litre petrol engine, 3 or 5 door, 59 bhp. Includes automatic and manual models as well as ones with Bluemotion and/or stop start technology.

£2,205 – £20,825

High Up1.0 litre petrol engine, 3 or 5 door, 59 bhp, stop start technology.

£2,205 – £20,825

Up Beats1.0 litre petrol engine, 3 or 5 door, 59 bhp, automatic.

£2,205 – £20,825

Hyundai i102014 – 2020S Air, S, SE, Premium1.0 litre engine, 5 door, Blue Drive S Air or S Air, 66 bhp

£3,010 – £15,010

Skoda Fabia Hatchback2015 – 2021S1.0 litre engine, 5 door, 74 bhp

£3,515 – £17,335

SE, SE Drive, Colour Edition1.0 litre engine, 5 door, 59 bhp

£3,385 – £17,995

Smart Forfour2015 – 2019Pure1.0 litre engine, 5 door, 70 bhp£3,530 – £14,890
Ford Ka Plus2016 – 2019Studio1.2 litre engine, 5 door, Ti-VCT, 69 bhp

£5,370 – £10,200

Nissan Micra Hatchback2017 onwardsVisia, Visia+, Acenta Limited Edition1.0 litre petrol engine, 5 door, 70 bhp or IG 71.

£5,485 – £19,605

Acenta1.0 litre petrol engine, 5 door, 70 bhp or IG 71, various audio and exterior packs.

£5,485 – £19,605

Volkswagen Polo Hatchback2017 onwardsS, Beats, SE Tech Edition1.0 litre petrol engine, 5 door, 64 bhp or 79 bhp, includes Evo model.

£7,790- £25,865

SE1.0 litre petrol engine, 5 door, 64, 74 or 79 bhp, includes Evo model.£7,790- £25,865
Match, United, Active1.0 litre petrol engine, 5 door, 79 bhp, Evo model.£7,790- £25,865

If your car insurance policy is up for renewal soon, don’t just sit back and wait for your existing insurer to auto-renew your policy. Although new rules have been introduced to ensure insurers highlight a customer’s previous year’s premium price against their renewal price, research by MoneySuperMarket.com found that nearly half of motorists (48%) didn’t recall seeing these notifications. Insurers typically reserve their best deals for new customers, meaning those who auto-renew end up paying much higher premiums than they’d be offered if they switch to a different insurer.

If your insurance isn’t up for renewal just yet, you can set up a reminder here and we’ll let you know when it’s time to search for a new deal.

Set your free car insurance reminder​

Let us know when your car insurance expires and we’ll remind you when it’s time to check for a better deal.

By providing us your email address you agree to receive emails and communications from us and acknowledge that your personal data will be used in accordance with our Privacy Policy and Terms and Conditions. You can unsubscribe at any time by following the link in our emails.

Success! Your reminder has been set.

Check out our article 10 practical tips to reduce your car insurance premiums for other ways to keep insurance costs down.

Or, if you’re looking to reduce your motoring costs more broadly, there might be changes you can make to the way you drive to keep down the amount of fuel you use – read more in our article 11 ways to keep fuel costs down. Finally, our article Ten ways to save on car and travel costs contains an overview on ways to save on travel across multiple modes of transport.