Car insurance is mandatory in order to legally drive on UK roads, with a minimum of third-party car insurance required on your vehicle. Car insurance renews annually, so it is a good idea to shop around each year to ensure you are getting the best deal. There are numerous factors that can affect how much you pay for your car insurance policy including your age and where you live. Another factor is the type of car that you wish to insure.
In this article, we look at the cheapest car to insure in the UK and share tips on how to save money on your car insurance premium.
What are the different types of car insurance?
There are three main types of car insurance; fully comprehensive, third party, fire and theft and third party car insurance. Third party car insurance is the legal minimum required for you to drive your car on UK roads and despite being the least comprehensive car insurance policy it can actually be one of the most expensive. Fully comprehensive car insurance offers the most cover by protecting you against damage to both your vehicle and the other driver's vehicle. We summarise the different types of car insurance policies and what each covers in our article, 'What are the different types of car insurance?'
How much does car insurance cost?
How much you pay for your car insurance premium varies depending on numerous factors including where you live, your age and your occupation as well as the type of car insurance policy you choose to purchase. The car you drive can also have an impact on the amount you pay for your car insurance as each car is placed into a car insurance group, which helps to determine the cost of your premium. We explain more in our article, 'How much does car insurance cost?'
What are the cheapest cars to insure?
The amount you will pay for your car insurance premium will vary depending on where you live and your age but also driving a car from a lower insurance group will usually see a lower insurance premium compared to a car in a higher insurance group.
Below we have listed some of the cheapest cars to insure for new drivers (those aged 17 years old), young drivers (those aged between 17 - 25 years old) and the cheapest cars to insure in general. We also list examples of some of the cars from the lower insurance groups which typically mean lower insurance policies. If you are a new driver and looking to get a vehicle you should consider vehicles in lower insurance groups to try and lower your car insurance premium. You can learn more in our article 'Cheapest car insurance for new drivers – which is the best?'
Cheapest cars to insure for 17 year old drivers
If you have just passed your driving test your car insurance premium is likely to be high as you lack experience and if you are young it is likely to be even higher due to your age and your insurance risk. Below, we list 10 of the cheapest vehicles for 17 year old drivers according to data compiled by RAC insurance:
- Fiat 500
- Peugeot 108
- Hyundai i20
- Ford Fiesta
- Vauxhall Corsa
- Renault Clio
- Peugeot 208
- Toyota Aygo
- Sodia Fabia
- Citroen C1
Cheapest cars to insure for young drivers (17 - 25 year olds)
Young drivers are also likely to experience high insurance costs, particularly those under the age of 25. Below, we list 10 of the cheapest vehicles for 17 year old drivers according to data compiled by RAC insurance:
- Hyundai i10
- Volkswagen Polo
- Skoda Fabia
- Kia Picanto
- Toyota Aygo X
- Volkswagen Caddy
- Fiat 500
- Dacia Sandero
- Renault Clio
- Seat Arona
Cheapest cars to insure in the UK
The following list identifies the overall cheapest cars to insure in the UK and is based on data from the comparison site Go.Compare using the median premium of car insurance policies sold between 1st January 2025 and 28th February 2025:
- Mazda MX-5
- Peugeot 206
- Citroen Xsara
- Smart fortwo
- Toyota iQ
- Fiat Panda
- Peugeot RCZ
- Vauxhall Agila
- SAAB 9-3
- Volvo S40
Cheapest Electric vehicles to insure
Electric cars generally are more expensive to insure than petrol/diesel vehicles due to higher repair costs. The following list highlights the 10 cheapest EVs to insure based on data from the comparison site Go.Compare using the median premium of car insurance policies sold between 1st January 2025 and 28th February 2025:
- Dacia Spring
- Mini Cooper
- Fiat 500
- Volkswagen E-Golf
- Vauxhall Corsa
- Peugeot E-2008 95
- Renault Zoe
- Nissan Leaf
- Cupra Born
- Peugeot E-208
Cars in lower insurance groups
If you are looking for cheap vehicles to insure you should consider cars from lower car insurance groups. Below we have listed some examples of cars in the lowest car insurance groups but other vehicles may also be cheaper for you depending on numerous other factors such as your driving experience, where you live and your age. It is worth noting that for cars registered after 1st August 2024, the traditional insurance groups are being replaced with a Vehicle Risk Rating. This new scale runs from 1 to 99, so if you are buying a new car you should look for a lower Vehicle Risk Rating (VRR).
More information on the cost of car insurance can be found in our article 'How much does car insurance cost?'
Car Insurance Group 1
- Chevrolet Spark
- Citroën C1
- Fiat Panda
- Ford Ka+
- Seat Mii
- Skoda Fabia Hatchback
- Skoda Citigo
- Volkswagen Fox Urban
Car Insurance Group 2
- Citroën C3
- Dacia Sandero
- Fiat Panda 4x4
- Kia Picanto
- Nissan Pixo
- Seat Ibiza Hatchback
- Skoda Fabia Hatchback
- Smart Forfour
- Toyota Aygo
- Vauxhall Corsa Hatchback
- Volkswagen UP!
How to save money on your car insurance
Car insurance can be expensive and as it is a mandatory purchase it is something that you cannot go without. However, there are ways that you can save on your car insurance policy and we list some of these below. For more money-saving tips, read our article 'How to save money on your car insurance'.
Tips to save money on your car insurance policy:
- Shop around - Shopping around for car insurance is now easier than ever, there are a number of comparison websites available to help you get a more competitive deal.
- Buy a car in a low insurance group - As shown above, cars that are in lower insurance groups are cheaper to insure
- Pay your premium annually - Paying your car insurance premium annually can save you money as some insurers will apply an additional credit charge for paying your premium monthly, Damien explains more about paying insurance annually in his video “Why is car insurance more expensive when you pay monthly?”
- Increase the policy excess - Increasing your policy excess can reduce your premium as you are agreeing to contribute more towards the cost of a claim
- Consider telematics insurance - Telematics insurance - also known as 'black box' insurance - can help to reduce your car insurance premium as it tracks your driving and can lower your premium if you are seen to be a safe and careful driver.
- Drive fewer miles - How many miles you drive in your car in a year can affect the cost of your car insurance premium. Using public transport more often and driving fewer miles can help to lower the premium cost. Don't lie about how many miles you actually drive though as you could invalidate your insurance premium.
How to buy car insurance
If you need to purchase a car insurance policy one of the quickest and easiest ways to do so is via a comparison site such as Confused.com* Comparison sites allow you to compare multiple providers at once to find the cheapest policy for your car. Remember not all providers feature on comparison sites either so you may be able to get a better deal elsewhere.
For more car insurance must knows watch episode 463 of the Money to the Masses podcast.
If a link has an * beside it this means that it is an affiliated link. If you go via the link, Money to the Masses may receive a small fee which helps keep Money to the Masses free to use. The following link can be used if you do not wish to help Money to the Masses - Confused.com
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