What Are The Cheapest Cars To Insure For New Drivers?

Which are the cheapest cars to insure for new drivers?

City cars and small superminis with 1.0-litre engines in insurance groups 1 to 10 consistently produce the lowest quotes for new drivers. The table below ranks ten of the cheapest options available in 2026.

Different trim levels and engine options of the same model can sit in different insurance groups. A base-spec Hyundai i10 with the automated manual gearbox is in group 1, but the manual version sits in group 2. Always check the specific variant before buying.

Why the Hyundai i10 tops the list

The i10 is one of the last city cars still on sale after rivals like the Volkswagen Up and Citroen C1 were discontinued. Its 1.0-litre engine, low repair costs, and factory-fitted security features place the base model in the lowest possible insurance group.

Used cars that are also cheap to insure

The Ford Fiesta is no longer available new, but remains one of the most popular used cars for new drivers. Many 1.0-litre EcoBoost models sit in groups 3 to 7, parts are widely available, and insurance quotes are competitive because of the car’s strong safety record.

Insurance group ratings do not change with vehicle age, so a five-year-old Polo in group 3 costs the same to insure as a brand-new one. If you are buying your first car on a budget, a used group 1 to 5 hatchback is often the best balance of purchase price and insurance cost.

What makes a car cheap to insure?

Low engine power, affordable repair costs, strong safety features, and low theft risk. These four factors combine to place a vehicle in a low insurance group, which directly reduces your premium.

Engine size and power

Cars with 1.0-litre engines producing 60 to 80 horsepower sit in the lowest groups. Insurers associate higher power with higher speed and more severe accidents, so even a mild turbo can push a car two or three groups higher than the naturally aspirated version.

Repair costs

Cheap bumpers, wings, and windscreens mean cheaper claims for the insurer. City cars use widely available parts, which keeps labour and material costs down. Understanding how car insurance is calculated helps you see why repair costs matter so much to your premium.

Safety and security

Autonomous emergency braking, electronic stability control, and multiple airbags reduce accident severity. Factory-fitted immobilisers and alarms lower theft risk. The Euro NCAP safety rating is one of the factors the Group Rating Panel uses when assigning groups.

How do insurance groups work?

Every car sold in the UK is assigned an insurance group from 1 to 50 by the Group Rating Panel, a joint body of the Association of British Insurers and Thatcham Research. Group 1 is the cheapest to insure and group 50 is the most expensive.

What the groups mean in practice

The group rating is fixed for each specific model, engine, and trim combination. It does not change with the vehicle’s age. You can find more detail in our guide to car insurance groups.

How can new drivers reduce insurance costs further?

Choosing a low-group car is the biggest step. Beyond that, telematics insurance, paying annually, and building your no-claims discount all make a measurable difference.

Telematics (black box) insurance

Black box insurance monitors your driving through a device or phone app. Safe driving, including smooth braking, sensible speeds, and avoiding late-night trips, earns lower premiums at renewal.

For new drivers under 25, telematics policies can cut premiums by 20 to 40 percent compared to a standard policy. Our guide to the best black box insurers for new drivers compares the main providers.

Build your no-claims discount

Each claim-free year earns you a no-claims bonus that reduces your renewal premium. After one year, expect a 20 to 30 percent reduction. After five years, the discount can reach 60 percent or more.

The NCD belongs to you as the policyholder, not to the car. If you switch vehicles, your discount transfers with you. If you are still learning, a learner driver insurance policy in your own name lets you start building your NCD before you pass your test.

Pay annually if you can

Monthly payments include interest, typically adding 10 to 20 percent to the total annual cost. Paying the full premium upfront avoids that charge entirely.

Compare quotes widely

Prices vary significantly between insurers for the same car and driver. Comparing car insurance quotes from multiple providers is essential. The cheapest quote for one driver is rarely the cheapest for another.

Should new drivers buy new or used?

Insurance group ratings do not change with vehicle age, so new and used versions of the same car insure at similar rates. The choice comes down to purchase price, warranty, and how you feel about minor bumps while building confidence.

New cars: warranty and peace of mind

New group 1 city cars start around £9,000 to £12,000 with manufacturer warranties of three to seven years. You get the latest safety technology and the lowest mileage, but depreciation hits hardest in the first year.

Used cars: value and lower stakes

Used equivalents cost £3,000 to £7,000 for a three-to-five-year-old model with reasonable mileage. Minor scrapes are less stressful on a used car, and the money saved on purchase price can go towards a better insurance policy. If you are a young driver, the lower upfront cost often matters more than a factory warranty.

Which cars should new drivers avoid?

Anything above insurance group 10 for your first car will push premiums up significantly. Performance variants, turbocharged engines, and modified vehicles are the most common mistakes.

Cars that cost more to insure than you expect

Performance hatchbacks like the Ford Fiesta ST or Volkswagen Polo GTI sit in groups 20 to 30 despite looking like affordable small cars. Turbocharged versions of otherwise cheap cars can jump two or three groups higher than the naturally aspirated model.

Premium brands with expensive parts (BMW, Audi, Mercedes in larger engine specs) also attract higher premiums because of repair costs, even if the car itself was cheap to buy used.

Modifications increase your premium

Alloy wheels, body kits, engine tuning, and exhaust changes can all increase the effective insurance group or trigger additional loading on your premium. If you want the cheapest insurance, keep the car standard.

Is comprehensive or third-party cheaper for new drivers?

Comprehensive cover is often cheaper than third-party only for new drivers. This sounds counterintuitive, but insurers view comprehensive policyholders as lower risk, which can result in a lower premium even though the cover is broader.

Why comprehensive can cost less

Third-party policies attract a higher proportion of high-risk drivers, which pushes up the average claim cost for that pool. Comprehensive cover spreads the risk across a wider, lower-risk group. Our guide to what comprehensive car insurance covers explains the differences in detail.

Always compare both options. If you are a teen driver, student, or 18-year-old, comprehensive is almost always the cheaper quote.