13 Cheapest cars to insure for new drivers

All cars are categorised into groups from 1 to 50 based on their risk of being involved in an accident, with lower groups typically being eligible for cheaper insurance. Insurers then assess factors like your age, driving experience, and any penalties or convictions.

If you’re a new or young driver, that’s considered a higher risk, and the price of insurance may noticeably impact your car ownership. Nevertheless, there are strategies to help you minimise your insurance costs, one of which is choosing the right model. Here’s a list of cars in the lowest insurance groups that don’t feel like you’re settling for less.

A quick note before we begin: At Carplus, we make sure you get the car you want on the best possible terms — your dream ride is just a step away.

1. Fiat panda

The Fiat Panda is easily recognised for its boxy design and durability. It’s an affordable choice, especially if you mainly drive in the city. It falls into the lower insurance groups and is cost-effective to maintain because Panda parts are readily available on the UK market.

The basic model is the Panda Pop, and the newest version features a mild-hybrid engine, which helps lower emissions and improve fuel efficiency. Even in traditionally fuelled models, it has low running costs and is a good all-around car with a reasonable amount of space for its size.

2. Hyundai i10

The Hyundai i10 is a well-equipped hatchback featuring such amenities such as air conditioning and electric windows, even in the entry-level SE model. Even the moderately priced versions come with a touchscreen infotainment system. However, the 67hp engine requires serious effort to keep up with faster traffic, but this explains why these models fall into the lowest insurance group.

The car provides just enough space for four adults and has a boot that can handle a weekly grocery trip. Its compact size and effortless handling make it ideal for city driving; plus, parking is very easy for new drivers.

3. Volkswagen polo

The Volkswagen Polo is a comfortable and stylish car with a cabin that uses high-quality materials. Models with a 1.0-litre petrol engine qualify for lower insurance rates and are great for city driving. However, if you frequently drive on motorways or faster roads, you might prefer a version with a larger engine despite the higher cost.

Whichever version you choose, you’ll get a car that is enjoyable to drive, comfortable, smart, and spacious inside. Its strong resale value further adds to its appeal.

4. Škoda fabia

The Škoda Fabia shares similar features and engines with the Volkswagen Polo since both cars are based on Volkswagen Group platforms. While the interior is comfortable, it doesn’t fully match the Polo’s premium build quality. Still, it provides a pleasant travel experience.

The base model with an 80hp 1.0-litre MPI engine, falling into insurance groups 1-4, feels a bit sluggish. For driving on motorways, it’s better to go for a variant equipped with the more modern and powerful TSI engine despite it being in a higher insurance group.

5. Kia picanto

The Kia Picanto is a compact hatchback known for its stylish interior and nimble handling. It’s powered by a 66 hp 1.0-litre petrol engine, which is suitable for city driving and offers good fuel efficiency if driven moderately.

For new and young drivers, older models of the Picanto are likely more affordable. However, even the latest version is considered one of the cheapest cars in the UK when you consider its features and capabilities. The base trim level, 2, is reasonably well equipped, but upgrading to the 3 trim gets you much more.

6. Seat ibiza

The Seat Ibiza is known for its sharp handling and comfortable ride, except for the firmer FR models. The economical engine lineup ranges from a 1.0-litre MPi with 80hp to a more modern turbocharged 100hp 1.0-litre TSI, where the latter costs more to insure.

Inside, the Ibiza comfortably seats four adults and offers a practical boot. Its stylish exterior adds to its desirability, which is matched by its fun-to-drive nature mentioned earlier. Standard features across all models include a colour touchscreen infotainment system, alloy wheels, and a leather steering wheel.

7. Nissan juke

When the Nissan Juke debuted in 2010, it introduced a rugged SUV style in a compact package. It’s praised for being fun to drive with low running costs, which appeals to budget-conscious buyers who want a distinctive vehicle. It also offers the first sporty version in its class.

The standard 1.0-litre petrol engine provides decent performance, but it’s more responsive at higher RPMs. For added power and efficiency, there’s a 1.6-litre petrol hybrid option.

Despite its SUV classification, the Juke is surprisingly affordable to insure.

8. Peugeot 206

The Peugeot 206 is a well-known small city car that has been around since the late 90s. However, it’s now considered outdated, as Peugeot stopped making new versions in 2009. Its design shows its age.

Drivers have complained about its uncomfortable driving position, flimsy build quality, and awkward pedals. More recent models like the 207 and 208 are available, but they come with slightly higher insurance costs than the older 206.

9. Citroën C1

The Citroën C1 is highly favoured by new drivers. It offers agile handling and low running costs, so it’s perfect for urban commuting. Moreover, it’s affordable to purchase and inexpensive to insure. With production ending in 2022, now is a great opportunity to snag a bargain on a used C1.

In the Citroën C1, there’s ample space in the front with convenient door pockets and places to store phones while driving. But in the back, access is a bit tricky, and there’s not much legroom.

10. Peugeot 108

The Peugeot 108 is a great choice for new drivers when it comes to insurance, thanks to its extensive safety features and affordable repair costs. While the 1.0-litre, three-cylinder engine is better for navigating city streets and tight spaces, it’s also quite capable on faster roads and motorways.

In terms of features, the Peugeot 108 exceeds expectations for its price range. It comes with remote central locking, a 7-inch touchscreen infotainment system with DAB radio, Bluetooth, and screen mirroring.

11. Suzuki swift

The Suzuki Swift is economical, enjoyable to drive, and offers excellent value if you’re financing it. Its lightweight design contributes to nimble handling, and new drivers will appreciate the quick responsiveness and minimal body lean when cornering.

Also, the Swift is the sole small petrol-powered hatchback in the UK market that offers an optional four-wheel-drive system. This feature appeals to buyers seeking added traction without the higher cost of an SUV. However, going for this option does increase the price.

12. Nissan micra

The Micra remains stylish, comfortable, and user-friendly, with good fuel efficiency and low servicing costs. Despite recently being discontinued, nearly-new models are readily available and priced affordably.

The Nissan Micra used to include a variant in insurance group 1, so consider this a great find on the used market. However, the 92hp 1.0-litre Acenta model with a CVT automatic gearbox is more widely available. It sits in the budget-friendly insurance group 4 (rising to group 8 for the manual gearbox version).

If you suddenly decide to go for the best fuel efficiency instead of the lowest insurance group, there’s a 1.5-litre diesel engine that’s quite smooth and refined for its size.

13. Dacia sandero

The Dacia Sandero is a fantastic choice if you’re in the market for a small hatchback. It offers two engine options: the TCe 90 petrol and the preferred TCe 100 Bi-Fuel, which can run on both petrol and cheaper liquefied petroleum gas. The bi-fuel engine feels more powerful than the regular petrol version at lower speeds and operates more smoothly and quietly.

Regardless of the engine you choose, the Sandero excels in practicality. It comes with a good number of standard features, such as Bluetooth and air conditioning, and you can opt for a touchscreen infotainment system as well. Dacia no longer offers the entry-level Sandero Access, but the Essential model remains affordable and falls into insurance group 3.

Carplus: Affordable car finance for new drivers

At Carplus, we understand that new drivers face challenges with both car purchases and insurance costs. That's why we offer tailored car finance solutions for the most insurance-friendly vehicles. Maybe you're eyeing a Fiat Panda, Hyundai i10, or any other car from our list of cheapest-to-insure models, our competitive rates and flexible terms make ownership achievable. Our expert brokers will guide you through the process, helping you balance the costs. With Carplus, you can drive away in a reliable, affordable vehicle that won't break the bank to insure. Let us help you start your driving journey on the right financial foot.

Conclusion

Of course, the model alone isn’t the only factor that makes a difference. You can also use black box insurance, opt for pay-as-you-go plans, reduce your mileage, or increase your excess. There are many other tips for improving and minimising costs.

Also, used cars are typically cheaper to insure, as they are less valuable than brand-new models. These options are easy to find with Carplus’s search tool, where you can also secure car finance options. Drive smart and save big!