What cars are the cheapest to insure?

2 April 2024

Today, many of us are having to cut back on our spending. Whether you’re shopping for groceries or clothes, more and more people are hunting for a bargain. But when you’re buying a new car, it’s not just the upfront purchase price that needs to be considered, it’s how expensive it is to run, including how much it costs to insure.

To help you out, we’ve gathered some of the cars with lower running costs; as well as a few general points about the cost of car insurance to help you get started.

Easy as hack

When searching for a car, if you look out for a smaller engine size and fewer modifications this can help towards lower insurance cost.

AT A GLANCE

1. The cost of car insurance is based on many factors including, but not limited to your age, your driving history and your car’s engine size.

2. To save money, it helps to know which cars are in the Thatcham insurance groups to ensure the cost of cover will be affordable; and we’ve got the list you need.

3. Insurers own rating systems may not be based on the Thatcham groups

How is car insurance calculated?

The cost of your car insurance is based on many things, including, but not limited to your age, where you live and how long you’ve been driving for.

Usually, the higher the value of a car, the more it will cost to repair it if an accident happens, which can mean a higher insurance cost.

The bigger the engine size and the more modifications a car has, the higher the insurance cost is likely to be. So, if you’re trying to reduce insurance costs, look out for cars with small engines and ones that haven’t had many, or any, modifications.

You should also be aware of what Thatcham insurance group your car is in. There are 50 Thatcham car insurance groups in the UK which are a key factor in the classification of cars based on their risk of being involved in an accident or stolen.

Thatcham group ratings for cars in Group 1 can often mean they are the lowest risk and cheapest to insure, while Group 50 are more likely to be a higher risk and therefore more expensive to insure.

These groups can help guide you on how high or low your car insurance premium could be; but there can be exceptions.

Thatcham insurance groups may be rated differently by your insurer and the rating is subject to change.

We know it can be tricky to find a car that ticks all the boxes and isn’t too costly to run. Here are some options that are popular, based on the Thatcham insurance groups.

Here are 10 more affordable cars to consider:

1. Volkswagen up!

Thatcham Insurance group – 1

It may be a small car but that mean low insurance cost. Despite manufacturers stopping the production of the Volkswagen up! in October 2023, you’ll still be able to find plenty of new models on sale.

2. Hyundai i10

Thatcham Insurance group – 2

Named the Auto Express 2023 City Car of the Year, the Hyundai i10 is a relatively spacious hatchback that may not be expensive to insure, perfect for those long family road trips. The fresh design, modern tech and smooth driving are key highlights.

3. Kia Picanto

Thatcham Insurance group – 3

With a 66bhp 1.0 petrol engine, the insurance cost could be at the lower end for the Kia Picanto. It might be a small car but it’s perfect for the commute to work or drives around town.

4. Fiat Panda

Thatcham Insurance group – 8

We’ve mentioned that a small engine size typically means lower insurance cost, such as the Fiat Panda. Its single 1.0-litre petrol unit can mean cheaper insurance. and its mild hybrid tech also helps keep emissions down, helping you lower your environmental impact as well.

5. Skoda Fabia

Thatcham Insurance group – 4

The Skoda Fabia is a cheaper option to buy and to run. With a comfortable and stylish interior, it’s a great choice for those on a budget, with the non-turbocharged 1.0-litre MPI engine sitting in the lowest Thatcham insurance group of the Fabia lineup.

6. Volkswagen Polo

Thatcham Insurance group – 3

A Volkswagen Polo with a 1.0-litre petrol engine can mean low insurance and low running costs. The Polo is great for regular drives around town, but if you’re going to be doing higher mileage, you might want to opt for a larger engine.

7. Toyota Aygo X

Thatcham Insurance group – 5

A 71bhp 1.0-litre three-cylinder petrol engine may make the Toyota Aygo X a cheaper car to insure. With automatic emergency braking (AEB), lane-keeping assist and six airbags, it’s a car that’s good value for money.

8. Nissan Micra Acenta

Thatcham Insurance group - 4

The Nissan Micra is stylish, comfortable and easy to drive, while also being good on fuel and cheap to service, helping you save money in the long run. The 92hp 1.0-litre Nissan Micra Acenta with an automatic gearbox lands in group 4, but if you want a manual, the vehicle will move to Thatcham car insurance group 8.

Ageas are not making any recommendations or endorsing any of the car models above but using review sources for reference.