Choosing the right car can make a significant difference to your insurance bill - particularly for younger drivers, where the gap between a low and high insurance group car can run into the hundreds or even thousands of pounds a year.
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 use the traditional system of 50 insurance groups, with group 1 being the cheapest and group 50 the most expensive. Cars registered after August 2024 use a new Vehicle Risk Rating system on a scale of 1-99, though both systems are running in parallel 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, 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. For more on EV insurance, read our electric car insurance cost guide.
The difference between insurance groups has a dramatic impact on premiums, especially for younger drivers.
The ABI reports that the average premium for 17-year-olds is £1,932. That average covers drivers across all insurance groups. Choosing a car in Group 1 instead of Group 20 or above puts you at the lower end of that range, while a high-group car pushes you well above it. The exact difference depends on your circumstances, but the insurance group is one of the biggest factors within your control.
The same principle applies at every age. The average UK premium is £560 (ABI, Q1 2026), but drivers in low insurance group cars will typically pay less than that average, and those in high groups will pay more. For a full breakdown of what else affects your premium, read our guide on how car insurance groups work.
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 is 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 - always compare car insurance quotes via Brumble to see what you would actually pay.
| Driver type | Recommended cars | Why |
|---|---|---|
| 17-year-olds | Hyundai i10, Kia Picanto | Lowest insurance groups and low purchase prices. Consider telematics to demonstrate safe driving from day one. Read our young drivers insurance guide for more advice. |
| New drivers over 25 | Volkswagen Polo, Skoda Fabia | More refinement while keeping insurance manageable. Your age means slightly lower base premiums. Our first car insurance guide walks through the process. |
| Students | Dacia Sandero | Lowest purchase price and running costs - the most affordable total package. See our student car insurance guide for more tips. |
| 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. Read our electric car insurance cost guide. |
Whatever car you choose, always compare insurance quotes before buying 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. Our guide on how to lower your car insurance premium covers every strategy in detail.
The Hyundai i10 is the cheapest new car to insure in the UK. In its base specification with the 1.0-litre automated manual gearbox, it sits in insurance group 1, the lowest possible rating. The Volkswagen Polo in group 2 and Kia Picanto in group 4 are also among the cheapest options.
New drivers should look at cars in insurance groups 1 to 5, such as the Hyundai i10, Volkswagen Polo, Kia Picanto, and Dacia Sandero. These have small engines, affordable parts, and low repair costs, which keeps premiums down even when you have no driving history or no claims bonus.
For 17-year-olds, the Hyundai i10 (group 1) and Kia Picanto (group 4) offer the lowest insurance costs. Pairing a low group car with a black box policy can reduce premiums further by rewarding safe driving habits from day one.
Young drivers under 25 should focus on cars in groups 1 to 10. The Hyundai i10, Volkswagen Polo, Skoda Fabia, and Toyota Aygo X all offer low insurance costs. With the average 17-year-old paying £1,932 per year across all groups (ABI, Q3 2025), choosing a low group car puts you well below that average.
Most electric cars are more expensive to insure than petrol equivalents due to higher repair costs and battery replacement expenses. However, the BYD Dolphin Surf is an exception, sitting in lower insurance groups thanks to its price point below £20,000 and modest power output. Our electric car insurance cost guide has more detail.
Small petrol cars like the Hyundai i10, Kia Picanto, and Toyota Aygo X are among the cheapest to both tax and insure. They sit in the lowest insurance groups and have low CO2 emissions, keeping road tax costs down too. For the full picture of running costs, read our cost of running a car guide.
Adding an experienced named driver with a clean driving record can sometimes reduce insurance costs for young drivers. However, the main driver must be the person who drives the car most often. Falsely listing someone else as the main driver is called fronting and is insurance fraud.
First-time drivers should avoid hot hatches (Ford Fiesta ST, VW Golf GTI), sports cars (Mazda MX-5, BMW Z4), large SUVs (Range Rover, BMW X5), and performance saloons (BMW M3, Audi RS4). Modified vehicles also attract significantly higher premiums regardless of the base car's insurance group.
Association of British Insurers - Motor Insurance Premium Tracker, Q1 2026
Thatcham Research - Vehicle insurance group ratings
RAC Drive - Cheapest cars to insure for new drivers 2026
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