Choosing the right car can cut your insurance bill by over £1,000 a year. For young and new drivers especially, picking a vehicle in a low insurance group is one of the most effective ways to keep motoring costs manageable.
Every car sold in the UK is assigned an insurance group that helps insurers calculate your premium. Lower groups mean cheaper insurance.
Cars registered before August 2024: The traditional system of 50 insurance groups applies, with group 1 being the cheapest and group 50 the most expensive.
Cars registered after August 2024: A new Vehicle Risk Rating system uses a scale of 1-99, though insurers are using both systems interchangeably during an 18-month transition period.
The Association of British Insurers (ABI) and Thatcham Research determine these ratings based on several factors:
| Factor | How it affects your group |
|---|---|
| Engine size and performance | Smaller, less powerful engines sit in lower groups |
| Repair costs | Cars with affordable, readily available parts cost less to insure |
| Safety ratings | Vehicles with strong Euro NCAP scores often qualify for lower groups |
| Security features | Factory-fitted alarms and immobilisers help reduce your group |
| Vehicle value | More expensive cars typically fall into higher groups |
| Replacement part costs | Specialist or imported parts push premiums up |
Based on current insurance group ratings and real-world data, these are the cheapest new cars to insure right now:
The Hyundai i10 is the cheapest new car to insure in the UK. The base 1.0-litre petrol with the automated manual gearbox sits in group 1, making it ideal for drivers seeking the lowest possible premiums.
While the automated gearbox isn't the smoothest, stepping up to the manual version only moves you to group 2 – still excellent value. The i10 offers surprising interior space for its size, modern technology including Apple CarPlay and Android Auto, and comes with Hyundai's five-year unlimited-mileage warranty.
The Polo offers premium build quality at a competitive insurance rating. With the entry-level 1.0-litre three-cylinder engine in Life trim, it sits in group 2 – only fractionally higher than the i10.
The Polo feels genuinely grown-up inside, with high-quality materials that punch above its price point. It's refined on the motorway and composed on B-roads. The 80hp engine won't win races, but it's adequate for daily driving.
The Fabia shares its platform with the Polo but offers even more practicality. Its 380-litre boot is one of the largest in the supermini class.
The non-turbocharged 1.0-litre MPI engine delivers 79hp and sits in group 4. If you need more performance, the 1.0 TSI turbocharged option is worth considering, though insurance costs will increase accordingly.
The latest Picanto brings bold styling inspired by the Kia EV9, making it one of the most distinctive city cars available. Both manual and automatic versions in base '2' trim sit in group 4.
The seven-year/100,000-mile warranty provides excellent peace of mind. The 1.0-litre engine performs well around town, though it needs working harder on faster roads. Note the three-star Euro NCAP rating – lower than some rivals.
The Sandero delivers exceptional value. It's one of the cheapest new cars on sale in the UK, and insurance costs match the affordable purchase price.
Entry-level models sit as low as group 2, making comprehensive cover genuinely affordable even for young drivers. The trade-off is basic interior materials and fewer features than pricier rivals, but for pure value, the Sandero is hard to beat.
The Ibiza sits on the same platform as the Polo and offers sharp styling with a spacious interior. The eager 1.0-litre three-cylinder turbo delivers around 55mpg, helping offset slightly higher insurance costs.
At group 11, it's pricier to insure than the city cars above, but still affordable for a well-equipped supermini with five-star Euro NCAP safety ratings.
Toyota's compact crossover-styled city car offers quirky looks and proven reliability. The three-cylinder petrol engine is familiar from the previous Aygo and delivers dependable if unexciting performance.
Toyota's reputation for bulletproof reliability makes the Aygo X a sensible choice for new drivers who want minimal running costs and maximum peace of mind.
If you need more space than a city car provides, the Focus offers family practicality with reasonable insurance costs. The 1.0 EcoBoost in ST-Line trim sits around group 10-12, making it accessible for many drivers.
The Focus remains one of the best-driving family hatchbacks available, and its popularity means parts are readily available and affordable.
Crossover styling meets city car running costs. The Stonic offers the raised seating position many drivers prefer while keeping insurance groups manageable.
The outgoing model is available with good discounts as the new version arrives. Kia's seven-year warranty applies here too, adding long-term value.
The cheapest electric car to insure currently available. With prices starting below £20,000, the Dolphin Surf sits in lower insurance groups than most EVs.
Choose from Active trim (137 miles range) or Boost (200 miles range). While range is limited compared to pricier EVs, running costs are minimal and insurance remains affordable.
The difference between insurance groups has a dramatic impact on premiums, especially for younger drivers.
| Driver type | Potential annual savings |
|---|---|
| Young drivers (17-24) | £500 to £2,000+ |
| New drivers over 25 | £300 to £1,000 |
| Experienced drivers | £200 to £500 |
A 17-year-old choosing a group 1 car instead of a group 15 hot hatch could save enough to cover their fuel costs for the entire year.
Choosing the right car is just the starting point. These additional strategies can reduce your costs further:
Never purchase a car without getting insurance quotes first. Here's the process:
Insurance groups are only part of the calculation. Your age, location, occupation, and driving history all affect your final quote. A group 1 car won't necessarily be cheapest for every driver.
| Driver type | Recommended cars | Why |
|---|---|---|
| 17-year-olds | Hyundai i10, Kia Picanto | Lowest insurance groups + low purchase prices. Consider telematics to demonstrate safe driving from day one. Read our young drivers insurance guide for comprehensive advice. |
| New drivers over 25 | Volkswagen Polo, Skoda Fabia | More refinement while keeping insurance manageable. Your age means slightly lower base premiums. |
| Students | Dacia Sandero | Lowest purchase price and running costs – the most affordable total package. See our student car insurance guide for more ways to save. |
| Families | Skoda Fabia, Ford Focus | The Fabia's large boot handles family life; the Focus offers even more space. |
| Automatic drivers | Hyundai i10 auto, VW Polo, BYD Dolphin Surf | The i10 automatic sits in group 1 – the cheapest automatic to insure. |
| Electric car buyers | BYD Dolphin Surf | Currently offers the lowest insurance groups among EVs. |
See how much you could save by comparing quotes from leading UK insurers.
Compare Quotes NowChoosing one of the cheapest cars to insure in 2026 can save young drivers well over £1,000 annually – money that makes a genuine difference to the affordability of getting on the road.
The Hyundai i10 takes the top spot for lowest insurance costs, closely followed by the Volkswagen Polo and Kia Picanto. All three offer practical daily transport with insurance groups starting from 1-4.
For drivers who need more space, the Skoda Fabia and Ford Focus prove that family-sized cars don't have to mean family-sized insurance bills.
Whatever car you choose, always compare insurance quotes before buying, consider telematics if you're a young driver, and remember that the cheapest car to insure for one person might not be the cheapest for another. Your individual circumstances – age, location, occupation, and driving history – all shape your final premium.
The right car choice today sets you up for more affordable motoring for years to come.
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