Which Car Insurance Group Is The Cheapest In The UK?
Group 1 is the cheapest car insurance group in the UK. The Kia Picanto is the only new Group 1 car still on sale. Used options like the Volkswagen Up and Hyundai i10 are also Group 1.
These cars cost the least to insure because they have small engines, low repair costs, and strong safety ratings.
Car insurance groups range from 1 to 50. The lower the number, the cheaper the car is to insure.
But the group is only one part of the equation. Your age, driving history, postcode, and the level of cover you choose all affect your final premium.
This guide explains how insurance groups are set, lists the cheapest cars by group, shows how much you can save, and covers the factors that can override your car’s group rating entirely.
Group 1 cars like the Kia Picanto are the cheapest to insure, but your age, postcode, and driving history often matter more than the group itself.
Compare car insurance quotes to see what your car and profile would actually cost.
- What are car insurance groups and who decides them?
- Which cars are in the cheapest insurance groups?
- What about mid-range and high-group cars?
- How much can you save by choosing a lower insurance group?
- Does your insurance group matter more than your age and location?
- How can you check your car’s insurance group?
- Which cars should you avoid if you want cheap insurance?
- How can you reduce your car insurance cost beyond choosing a low group?
- Frequently asked questions (FAQs)
What are car insurance groups and who decides them?
Car insurance groups are a 1–50 rating system that tells insurers how expensive a car is likely to be to cover. Group 1 is the cheapest and Group 50 is the most expensive.
How the Group Rating Panel works
Every new car sold in the UK is assessed by the Group Rating Panel, a joint body made up of the Association of British Insurers (ABI) and Thatcham Research. They test each model and assign it a group based on five criteria.
Repair costs are the biggest factor. A car with cheap, widely available parts costs less to fix after an accident, so it goes into a lower group. Performance matters too. A 1.0-litre engine producing 65hp is lower risk than a 2.0-litre turbo with 200hp.
Safety ratings, security features (alarms, immobilisers, tracking devices), and the overall cost to replace the vehicle if written off all feed into the final group number.
What the group number actually tells you
The group number sets a baseline for how much the car itself costs to insure. It does not set your premium directly. Two drivers with the same Group 1 car can pay very different amounts depending on their age, postcode, and claims history.
Related: How is car insurance calculated?
Which cars are in the cheapest insurance groups?
The cheapest new cars to insure fall into groups 1–11. Small, fuel-efficient hatchbacks with 1.0-litre engines dominate the lowest groups, while compact SUVs and hybrids sit around group 10–11.
| Car model | Insurance group | Engine | Why it’s cheap to insure |
| Kia Picanto 1.0 Pure | 1 | 1.0L 3-cyl, 66hp | Only new Group 1 car on sale in the UK |
| Volkswagen Polo 1.0 Life | 3 | 1.0L 3-cyl, 80hp | Strong safety, well-made, affordable parts |
| Dacia Sandero 1.0 Expression | 3 | 1.0L 3-cyl, 90hp | Budget price, simple design, low replacement cost |
| Skoda Fabia 1.0 MPI | 4 | 1.0L 3-cyl, 80hp | Shares Polo platform, bigger boot, lower price |
| SEAT Arona 1.0 TSI SE | 10 | 1.0L turbo, 95hp | Crossover body, safer driver profile |
| SEAT Ibiza 1.0 TSI SE | 11 | 1.0L turbo, 95hp | Sharp styling, strong Euro NCAP, frugal engine |
| Toyota Yaris Cross 1.5 Icon | 11 | 1.5L hybrid, 116hp | Hybrid efficiency, excellent safety score |
| Ford Puma 1.0 Titanium | 11 | 1.0L 3-cyl, 125hp | UK best-seller, good safety, practical boot |
Groups shown are for base-spec models. Higher trim levels, larger engines, or factory-fitted extras can push the same model into a higher group. The Volkswagen Up, Hyundai i10, and Skoda Citigo are also Group 1 but no longer on sale new in the UK, but all three are available as used cars.
Best choices for new and young drivers
If you’re looking for young driver insurance, a Group 1 car like the Kia Picanto or VW Up gives you the lowest possible baseline premium. Combining a Group 1 car with a black box policy can cut costs further by rewarding safe driving habits.
Students and 18-year-olds face the highest premiums regardless of car choice, but starting with a low-group car builds a no-claims history faster, which pays off at every future renewal.
What about mid-range and high-group cars?
Groups 6–15 strike a balance between affordability and performance. Groups 16–50 cover everything from family saloons to supercars, with premiums rising sharply above Group 30.
Groups 6–15: the mid-range
Cars in this range include the Ford Focus (groups 10–14), Volkswagen Golf (groups 14–18), and SEAT Arona (group 10). They offer more space, power, and features while keeping insurance close to the national average.
Hybrid cars like the Toyota Yaris Cross (group 11) sit in this range too. Their efficient engines and strong safety scores keep groups lower than you might expect for a crossover SUV.
Groups 16–50: performance and luxury
Above Group 15, premiums climb quickly. A BMW 3 Series (groups 20–30) costs significantly more to insure than a VW Golf, and anything above Group 40 (performance cars, luxury SUVs, high-end EVs) carries premiums that can exceed £2,000 per year.
Electric car insurance is a mixed picture. Some EVs like the Fiat 500 Electric sit in groups 8–10, but premium models like the Tesla Model S or Audi Q6 e-tron are in Group 50 due to expensive battery repairs and specialist labour costs.
Modified cars also jump groups. A standard Ford Fiesta in Group 4 can move to Group 15+ with aftermarket exhaust, suspension, or engine remapping, even if the base model is budget-friendly.
How much can you save by choosing a lower insurance group?
Choosing a Group 1 car over a Group 30 car can save £500 to £1,000 per year on your premium. For young drivers, the saving can exceed £2,000.
| Insurance group | Example car | Typical annual premium (age 30–50) | Typical annual premium (age 17–24) |
| Group 1 | Kia Picanto | £350–£500 | £1,000–£1,500 |
| Group 4 | Skoda Fabia | £400–£600 | £1,100–£1,600 |
| Group 10 | SEAT Arona | £550–£800 | £1,500–£2,200 |
| Group 25 | Audi A3 | £800–£1,100 | £2,000–£3,000 |
| Group 40 | BMW 5 Series | £1,200–£1,600 | £3,000–£4,500 |
| Group 50 | Porsche 911 | £1,800+ | £4,000+ |
Premiums shown are estimates for comprehensive cover based on a clean licence, moderate mileage, and a non-London postcode. Your actual quote will vary by insurer.
Young driver savings
The group difference is most dramatic for teenagers and drivers under 25. A 19-year-old insuring a Group 1 Kia Picanto might pay £1,200, while the same driver in a Group 25 Audi A3 could face £3,000 or more. That’s £1,800 saved per year from car choice alone.
Savings beyond the group
Combining a low-group car with other cost-cutting strategies maximises savings. Paying annually rather than monthly saves 8–12%. Building a no-claims bonus over 3–5 years can cut 20–30% off your renewal.
Does your insurance group matter more than your age and location?
No. Your age, driving history, and postcode often have a bigger impact on your premium than the car’s insurance group. A 19-year-old with a Group 1 car can still pay more than a 45-year-old with a Group 20 car.
Age and experience
Drivers aged 17–24 pay the highest premiums in the UK. According to industry data, the average annual premium for an 18–24 year old is around £1,250, compared to £490 for drivers aged 45–65. That gap exists regardless of what car you drive. Young driver insurance costs fall steadily as you gain experience and build a claims-free record.
Postcode and location
Where you live significantly affects your premium. Urban postcodes with higher theft and accident rates cost more than rural areas. Drivers in Greater London pay roughly £200–£300 more per year than drivers in the South West or Scotland for the same car and profile.
Driving record
A convicted driver with points on their licence pays substantially more regardless of the car’s group. A single at-fault claim can add 20–40% to your next renewal. Keeping a clean record and understanding how excess works are more effective long-term cost reducers than car choice alone.
How can you check your car’s insurance group?
You can check any car’s insurance group for free using the Thatcham Research group rating tool. Enter the car’s make, model, and year to see its group number and the factors behind it.
Using the Thatcham group rating tool
The Thatcham Research group rating tool is the official source. It shows the exact group for every variant of every model, including different engine sizes and trim levels. A Ford Fiesta 1.0 might be Group 4, while a Fiesta 1.5 ST is Group 25. The same model name can span 20+ groups.
Why trim and engine spec matter
The base model of a car is almost always in a lower group than the top-spec version. A Volkswagen Polo 1.0 Life sits in Group 3, but the Polo 2.0 GTI jumps to Group 25. If insurance cost matters to you, always check the group for the exact variant before buying.
Factory-fitted options like larger wheels, sport suspension, or more powerful engines all push the group number up. Aftermarket modifications do the same, and many insurers treat undeclared modifications as grounds to void a policy.
Which cars should you avoid if you want cheap insurance?
Avoid Group 50 cars unless you are prepared for premiums above £2,000 per year. This group includes performance cars, luxury SUVs, and several electric models with expensive battery repair costs.
Group 50 surprises
Some cars in Group 50 may surprise you. The Audi Q6 e-tron (even base Sport trim), all BMW iX SUVs, the Land Rover Defender, and the Kia EV9 all sit in the highest insurance group. Battery replacement costs and specialist repair requirements push many EVs and SUVs higher than their price tag alone would suggest.
The used car trap
Buying a cheap second-hand BMW or Audi does not mean cheap insurance. A five-year-old BMW 3 Series bought for £15,000 is still in Group 25–30 because insurance groups are based on repair costs and performance, not the car’s current market value. Classic cars are the exception. They have their own specialist rating system.
If you need flexible short-term cover while deciding on a car, temporary car insurance lets you insure a vehicle for days or weeks without committing to an annual policy.
How can you reduce your car insurance cost beyond choosing a low group?
Choose a low-group car, build your no-claims discount, pay annually, increase your voluntary excess, and consider a black box policy. These five steps together can cut your premium by 30–50%.
A black box (telematics) policy tracks your driving habits and rewards safe driving with lower premiums. This is particularly valuable for young drivers who face high baseline costs.
Improving your car’s security also helps. A Thatcham-approved alarm and immobiliser can move your car down a group or two. Parking in a garage or on a driveway rather than on the street reduces theft risk, which insurers reward with lower quotes.
If your household has more than one car, multi-car insurance can offer a discount on each vehicle added to the same policy.
Choosing the right level of cover matters too. Comprehensive cover is often cheaper than third-party only because insurers see third-party only as higher risk. Always compare all three levels (third-party, fire and theft included) before assuming the cheapest tier is the cheapest option.
Frequently Asked Questions (FAQs)
Group 1 is the cheapest. Cars in this group include the Kia Picanto 1.0, Volkswagen Up, Hyundai i10, and Skoda Citigo. They have the lowest repair costs, smallest engines, and best safety-to-price ratio.
There are 50 car insurance groups in the UK, rated from 1 (cheapest) to 50 (most expensive). The groups are set by the Group Rating Panel, which is run by Thatcham Research and the Association of British Insurers.
Yes. If you are a young driver, live in a high-risk postcode, or have points on your licence, you can still pay over £1,000 per year for a Group 1 car. The group sets the baseline, but personal risk factors determine your final premium.
It depends on the model. Small EVs like the Fiat 500 Electric are in groups 8–10, but premium models like the Tesla Model S or BMW iX sit in Group 50. Battery repair costs are the main driver. Specialist EV providers may offer better rates than standard insurers.
Yes. The Group Rating Panel reviews models regularly and can adjust groups when new safety data, repair cost data, or theft statistics become available. A model’s group can go up or down between years. Thatcham Research is also transitioning from the 1–50 group system to a new Vehicle Risk Rating model, which assesses over 125 vehicle attributes.
No. Insurance groups are fixed to the model and variant, not the car’s age. A 10-year-old Ford Fiesta 1.0 is in the same group as a brand new one. However, older cars may qualify for lower premiums due to their lower market value.
The Ford Fiesta (discontinued in 2023 but widely available used) ranges from around Group 3 for the 1.0 Trend to Group 29+ for the 1.5 ST performance models. Always check the specific variant, not just the model name.
Not always. Comprehensive cover is often cheaper because insurers associate third-party only with higher-risk drivers. Compare all three levels before assuming the minimum cover is the cheapest.
Yes. A black box (telematics) policy monitors your driving and can reduce premiums by 10–25% for safe drivers. It is particularly effective for young and new drivers who would otherwise face very high baseline premiums.
Driving without insurance is illegal. You face a £300 fixed penalty and 6 penalty points on your licence. If the case goes to court, the fine is unlimited and you could be disqualified from driving. Your car may also be seized and destroyed.
Start with a low-group car, build a no-claims bonus, increase your voluntary excess, and compare quotes from multiple insurers. Getting quotes from comparison sites lets you see how your specific profile affects pricing across providers.
Yes, but van groups work differently. Pre-2016 vans are rated 1–20 and post-2016 vans are rated 21–50. Van insurance uses a separate assessment process from car insurance groups.