Top 20 Car Models with the Lowest Insurance Premiums in 2025
As an FCA-authorised expert with over 800,000 policies arranged, WeCovr knows that finding affordable motor insurance in the UK is a top priority for drivers. The car you choose has the single biggest impact on your premium. This definitive 2025 guide reveals the top 20 models with the lowest insurance costs.
WeCovr lists the cheapest cars to insure for UK drivers this year
Rising living costs mean every penny counts. For motorists, the annual insurance premium is a significant outgoing, particularly for young drivers or those in urban areas. The good news is that by making a savvy choice when buying a car, you can significantly reduce this financial burden.
Our team of researchers has analysed the market, focusing on the key factors that insurers use to determine a vehicle's risk profile. This guide is designed to empower you with the knowledge to select a car that is not only reliable and efficient but also light on your wallet when it comes to insurance.
How Car Insurance Groups Determine Your Premium
Insurers don't just guess what to charge you. Their pricing is a highly calculated process, and a car's 'insurance group' is the starting point. In the UK, all passenger cars are assigned to one of 50 insurance groups, a system managed by the industry's research body, Thatcham Research.
- Group 1: The cheapest to insure.
- Group 50: The most expensive to insure.
Several factors determine a car's group rating:
- New Car Value: The price of the car when new. More expensive cars cost more to replace.
- Parts and Repair Costs: The price of common replacement parts. A bumper for a popular supermini will be far cheaper than one for a luxury sports car.
- Repair Times: How long it takes to fix common types of damage.
- Performance: Acceleration and top speed are key indicators of risk. Faster cars are involved in more severe accidents.
- Safety: Cars with high Euro NCAP safety ratings and features like Autonomous Emergency Braking (AEB) can secure lower group ratings.
- Security: High-quality, factory-fitted alarms, immobilisers, and visible VINs help reduce the risk of theft, lowering the group number.
By choosing a car in a low insurance group, you are giving yourself the best possible head start on securing a cheap motor policy.
The Top 20 Cheapest Cars to Insure in the UK for 2025
Here is our definitive list of the 20 cars that typically offer the lowest insurance premiums for UK drivers. We've focused on models that are readily available new or on the used market, reliable, and popular with a wide range of motorists.
| Rank | Car Model | Lowest Insurance Group | Ideal For |
|---|---|---|---|
| 1 | Volkswagen up! | Group 1 | New drivers, city commuting |
| 2 | Skoda Citigo | Group 1 | Value-conscious city drivers |
| 3 | SEAT Mii | Group 1 | Stylish first-time car owners |
| 4 | Hyundai i10 | Group 1 | Reliability seekers, urban families |
| 5 | Kia Picanto | Group 2 | Budget-conscious drivers, long warranty |
| 6 | Dacia Sandero | Group 2 | Unbeatable value, practical motorists |
| 7 | Toyota Aygo X | Group 2 | Style-conscious young drivers |
| 8 | Citroen C1 | Group 1 (older models) | Used car buyers, city use |
| 9 | Peugeot 108 | Group 1 (older models) | Economical urban driving |
| 10 | Ford Fiesta | Group 2 (post-2017 models) | All-round excellence, used market |
1. Volkswagen up!
- Lowest Insurance Group: 1
- Why it's cheap: The up! is the quintessential city car. Its tiny 1.0-litre engine offers modest performance, making it a low risk for insurers. Parts are inexpensive and widely available, and its excellent build quality and strong safety scores for its class make it a firm favourite.
- Best for: Young drivers and anyone needing an economical and easy-to-park urban runabout.
2. Skoda Citigo
- Lowest Insurance Group: 1
- Why it's cheap: Essentially a Volkswagen up! with a different badge, the Citigo shares the same low-risk engine, cheap parts, and robust platform. It often represents even better value on the used market.
- Best for: Drivers looking for the quality of a VW up! at an even lower price point.
3. SEAT Mii
- Lowest Insurance Group: 1
- Why it's cheap: Completing the trio of VW Group city cars, the SEAT Mii offers the same group 1 insurance benefits as its siblings. It boasts a slightly sportier design, appealing to younger drivers who still need to keep costs to an absolute minimum.
- Best for: First-time car owners who want a touch of style with their low premiums.
4. Hyundai i10
- Lowest Insurance Group: 1
- Why it's cheap: Hyundai has built a reputation for outstanding reliability and a generous five-year warranty from new. The i10 is packed with safety features, has a low-powered entry-level engine, and is very affordable to repair.
- Best for: Anyone prioritising reliability and peace of mind alongside low running costs.
5. Kia Picanto
- Lowest Insurance Group: 2
- Why it's cheap: Like its cousin, the Hyundai i10, the Kia Picanto benefits from a superb seven-year warranty, low-cost parts, and a reputation for dependability. Its compact size and small engines place it firmly in the low-risk category for insurers.
- Best for: Budget-conscious drivers who appreciate the security of a long manufacturer warranty.
6. Dacia Sandero
- Lowest Insurance Group: 2
- Why it's cheap: Famous for being one of the UK's cheapest new cars, the Dacia Sandero's low purchase price directly translates to lower insurance costs. It uses proven, simple technology from its parent company, Renault, making repairs straightforward and affordable.
- Best for: Pragmatic drivers and families who want maximum space and practicality for minimum outlay.
7. Toyota Aygo X
- Lowest Insurance Group: 2
- Why it's cheap: With its funky crossover styling, the Aygo X appeals to a younger audience. However, underneath it has a frugal and reliable 1.0-litre engine and benefits from Toyota's excellent Safety Sense technology package, keeping its insurance group rating low.
- Best for: Style-conscious young drivers who want a modern, safe, and economical car.
8. Citroen C1
- Lowest Insurance Group: 1 (on older models)
- Why it's cheap: Though no longer sold new, the Citroen C1 is abundant on the used market. It shares its platform and engine with the Peugeot 108 and older Toyota Aygo models, meaning parts are cheap and plentiful. Its tiny engine is perfect for low premiums.
- Best for: Used car buyers seeking a cheap-to-run city car.
9. Peugeot 108
- Lowest Insurance Group: 1 (on older models)
- Why it's cheap: The sister car to the Citroen C1, the Peugeot 108 offers the same low-cost motoring package. It's incredibly economical, easy to drive, and falls into the lowest insurance groups, making it ideal for new drivers.
- Best for: Those looking for an economical and stylish used city car.
10. Ford Fiesta
- Lowest Insurance Group: 2 (for 1.1-litre models)
- Why it's cheap: Despite production ending, the Fiesta remains one of the UK's most popular cars. This ubiquity means parts are incredibly cheap and every mechanic knows how to fix them. Opt for the entry-level 1.1-litre engine to secure the lowest insurance group.
- Best for: Anyone wanting a superb all-rounder that's great to drive, practical, and cheap to insure.
11. Vauxhall Corsa
- Lowest Insurance Group: 2
- Why it's cheap: Another titan of the UK car market, the Corsa is a favourite among driving instructors and new drivers for a reason. Its popularity ensures low repair costs, and the entry-level 1.2-litre (75hp) engine is perfect for keeping insurance affordable.
- Best for: New drivers and those wanting a familiar, reliable, and cost-effective supermini.
12. Volkswagen Polo
- Lowest Insurance Group: 3
- Why it's cheap: The Polo feels like a smaller, more grown-up Golf. It offers superior build quality and refinement for its class. The entry-level 1.0-litre MPI engine is insurance-friendly, and its strong safety scores help keep premiums in check.
- Best for: Drivers who want a premium-feeling supermini without the premium insurance costs.
13. Skoda Fabia
- Lowest Insurance Group: 2
- Why it's cheap: The Fabia offers more space than most cars on this list but shares its insurance-friendly engines and platform with the VW Polo and SEAT Ibiza. It represents fantastic value, combining practicality with low running costs.
- Best for: Small families or drivers needing extra boot space without a high insurance bill.
14. SEAT Ibiza
- Lowest Insurance Group: 3
- Why it's cheap: The SEAT Ibiza blends sharp styling with the low-cost, reliable mechanicals of the VW Group. The non-turbo 1.0 MPI engine is the key to its low insurance grouping, making it an attractive proposition for younger drivers.
- Best for: Those who want a sporty-looking supermini that is still affordable to insure.
15. Fiat 500 Hybrid
- Lowest Insurance Group: 5
- Why it's cheap: The iconic Fiat 500 is a style statement. While not in the absolute lowest groups, the modern mild-hybrid version is surprisingly affordable to insure. Its low power output and city-focused design make it a manageable risk for insurers.
- Best for: Style-conscious drivers, primarily for urban use.
16. Renault Clio
- Lowest Insurance Group: 3
- Why it's cheap: The latest Renault Clio boasts a high-quality interior and impressive safety credentials, including a five-star Euro NCAP rating. The entry-level SCe 65 engine is the one to choose for minimal insurance costs.
- Best for: Drivers wanting a stylish, safe, and comfortable supermini.
17. MG3
- Lowest Insurance Group: 4
- Why it's cheap: The MG3 offers a lot of car for the money and comes with a reassuring 7-year warranty. Its straightforward 1.5-litre engine is simple and reliable. While not the most modern, its low purchase price helps keep insurance quotes reasonable.
- Best for: Value hunters looking for a spacious supermini with a long warranty.
18. Dacia Duster
- Lowest Insurance Group: 11
- Why it's cheap: The cheapest SUV to insure. While group 11 is higher than the city cars on this list, it's exceptionally low for a vehicle of this size. The Duster's low price and simple, rugged construction make it an insurance bargain for those needing space and practicality.
- Best for: Families on a tight budget or those needing a practical workhorse.
19. Fiat Panda
- Lowest Insurance Group: 3
- Why it's cheap: The Panda is a quirky and incredibly practical city car. Its boxy shape creates a surprisingly spacious interior. The mild-hybrid engine is economical and low-powered, and its back-to-basics nature means there's less to go wrong and repair.
- Best for: Urban drivers who value practicality and character over outright style.
20. Renault Zoe (Used)
- Lowest Insurance Group: 14
- Why it's cheap: For those considering an electric car, a used Renault Zoe is one of the cheapest to insure. As an EV, its performance is modest, and insurers are becoming increasingly familiar with them. It offers zero-emission motoring with manageable insurance costs.
- Best for: Eco-conscious drivers looking for an affordable entry into EV ownership.
Understanding Your UK Motor Insurance Obligations
In the United Kingdom, it is a legal requirement under the Road Traffic Act 1988 to have at least third-party motor insurance for any vehicle used on roads or in public places. Driving without insurance can lead to a fixed penalty of £300 and 6 penalty points, and if the case goes to court, you could face an unlimited fine and disqualification from driving.
There are three main levels of cover:
- Third-Party Only (TPO): This is the minimum legal requirement. It covers injury or damage you cause to other people, their vehicles, or their property. It does not cover any damage to your own vehicle.
- Third-Party, Fire & Theft (TPFT): This includes everything from TPO, but also covers your car if it's stolen or damaged by fire.
- Comprehensive: This is the highest level of cover. It includes everything from TPFT, but crucially, it also covers damage to your own car, regardless of who was at fault. It may also include extras like windscreen cover and personal accident cover.
An important note: Don't assume TPO is the cheapest. For many drivers, especially those with a good driving record, comprehensive policies can often be cheaper. Insurers have found that higher-risk drivers sometimes opt for the minimum cover, which can skew the pricing. Always compare quotes for all three levels.
Business and Fleet Insurance
If you use your vehicle for work-related purposes beyond commuting to a single office, you need business car insurance. This includes visiting clients, travelling between different work sites, or carrying business-related goods. For companies operating multiple vehicles, fleet insurance is the most efficient and cost-effective solution, covering all vehicles and drivers under a single policy. As an experienced broker, WeCovr can provide expert guidance and competitive quotes for both business and fleet insurance needs.
Key Factors That Influence Your Personal Car Insurance Quote
While the car model is a huge factor, your personal circumstances are just as important. Insurers look at a wide range of data points to calculate your individual risk profile.
- Your Age and Driving Experience: Younger drivers (under 25) and inexperienced drivers statistically have more accidents, leading to much higher premiums.
- Your Postcode: Insurers use postcode data to assess the risk of theft, vandalism, and accidents in your area. Urban postcodes are typically more expensive than rural ones.
- Your Occupation: Your job title can affect your premium. Some professions are deemed to involve more driving or stress, which insurers may view as a higher risk.
- Your Driving History: A history of claims or driving convictions (like speeding points) will significantly increase your premium. A clean licence is your best asset.
- No-Claims Bonus (NCB): For every year you drive without making a claim, you earn a discount. This is one of the most powerful tools for reducing your premium.
- Annual Mileage: The more you drive, the greater the statistical chance of having an accident. Be honest, but don't overestimate your mileage.
- Where Your Car is Kept: Parking your car in a locked garage overnight is seen as much lower risk than parking it on the street.
Practical Tips for Reducing Your Motor Insurance Costs
Beyond choosing a low-group car, there are several practical steps you can take to get the best car insurance deal.
- Compare, Compare, Compare: Never accept your renewal quote without checking the market. Using an independent broker like WeCovr gives you access to a wide range of insurers, ensuring you see the most competitive prices without having to check dozens of websites yourself.
- Pay Annually: While paying monthly is convenient, you are effectively taking out a loan and will be charged interest. Paying your premium in one lump sum is always cheaper.
- Increase Your Voluntary Excess: The excess is the amount you agree to pay towards any claim. A higher voluntary excess shows the insurer you are willing to share more of the risk, which can lower your premium. Just make sure you choose a level you can comfortably afford.
- Consider Telematics (Black Box) Insurance: Especially for young drivers, a telematics policy can slash costs. A small device monitors your driving (speed, braking, cornering, time of day) and rewards safe drivers with lower premiums.
- Limit Your Mileage: If you've recently started working from home or your driving habits have changed, ensure your policy reflects your lower annual mileage.
- Build Your No-Claims Bonus: Drive carefully and avoid small claims. The long-term savings from a large NCB often outweigh the cost of repairing a minor scratch yourself.
- Add a Named Driver: Adding an older, more experienced driver (like a parent) to your policy as a named driver can sometimes reduce the premium, especially for a young policyholder.
Why Choose WeCovr for Your Motor Insurance?
Navigating the motor insurance market can be complex. At WeCovr, we make it simple.
- FCA-Authorised Experts: We are fully authorised and regulated by the Financial Conduct Authority (FCA), so you can be confident you are dealing with professionals.
- Independent and Unbiased: We are not tied to any single insurer. Our goal is to find the best policy for your needs from a wide panel of leading UK insurance providers.
- Comprehensive Service: We cover everything from private cars, vans, and motorcycles to complex business and fleet insurance policies. Our experts understand the nuances of each type of cover.
- High Customer Satisfaction: Our clients consistently rate our service highly, thanks to our friendly, professional, and efficient approach.
- Save Time and Money: Let us do the hard work. We compare the market for you at no cost, saving you time and helping you find significant savings.
- Multi-Policy Discounts: When you take out a motor policy with us, you may be eligible for discounts on other insurance products, such as home or life insurance.
Frequently Asked Questions (FAQs)
What is the cheapest car to insure for a 17-year-old in the UK?
Generally, the cheapest cars for a 17-year-old are those in insurance group 1 or 2, such as a used Citroen C1, Volkswagen up!, or Hyundai i10. To get the absolute lowest premium, combining one of these cars with a telematics (black box) insurance policy is almost always the most affordable option, as it allows insurers to base the premium on actual safe driving behaviour.
Does modifying my car affect my insurance premium?
Yes, absolutely. You must declare all modifications to your insurer, or you risk invalidating your policy. Performance modifications, such as engine remapping or exhaust changes, and cosmetic changes like body kits or alloy wheels will almost always increase your premium. However, some modifications, like a Thatcham-approved alarm or tracker, can sometimes lead to a small discount.
Is comprehensive insurance always the most expensive option?
No, not always. While it offers the highest level of protection, comprehensive cover can sometimes be cheaper than third-party options. This is because insurer data has shown that drivers who choose the lowest level of cover can sometimes be a higher risk. It is essential to compare quotes for all levels of cover to ensure you are not missing out on better protection for a lower price.
How does a No-Claims Bonus (NCB) work?
A No-Claims Bonus, or No-Claims Discount (NCD), is a reward for safe driving. For every consecutive year you hold a policy without making a claim, you earn a discount on your premium at renewal. This discount can become substantial, often reaching 60-70% or more after five or more claim-free years, making it one of the most effective ways to lower your long-term insurance costs.
Do I need business car insurance if I just use my car for commuting?
Standard motor insurance policies typically cover driving to and from a single, permanent place of work (this is known as 'Social, Domestic, Pleasure, and Commuting'). However, if you use your car for any other work-related journeys, such as visiting clients, travelling between different offices, or carrying business samples, you must have business use cover. Failing to do so can invalidate your insurance in the event of a claim.
Ready to find out how much you could save on your car, van, or fleet insurance? Get a fast, free, and competitive motor insurance quote from WeCovr today. Our UK-based experts are ready to help you find the perfect cover at the right price.
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