The top 10 cheapest cars to insure right now and why

As any driver may know, the annual renewal of your car insurance premium could make a serious dent in your finances.

According to industry figures, the average price paid for motor insurance in 2019 is around £467 – but what affects this number and can you bring it down with a savvy choice of car?

Here’s the 10 cheapest cars to insure in the UK right now as well as our guide to what factors can influence your premium.

What impacts the cost of car insurance?

When it comes to car insurance premiums, the list of variables that can affect the cost can seem never-ending – from where you park your car to what job you do.

But if we focus on the car itself – not how you choose to use it – there are four main variables: engine size, security features, safety rating and modifications. These factors (alongside a few others) dictate which car insurance group the vehicle belongs to.

The Group Rating System is administered by Thatcham Research, on behalf of the Association of British Insurers (ABI).

Members of the ABI and Lloyds Market Association (LMA) make up the Group Rating Panel, which meets every month to set new car models to an insurance group.

There are 50 different car insurance groups, with those in insurance group 1 being the cheapest cars to insure and those in insurance group 50 the most expensive.

Find out more about car insurance groups and all the factors that impact them in our guide.

The top 10 cheapest cars to insure right now

If you’re on the lookout for a cheaper motor to get covered you’ll want to focus on cars in the ‘Group 1’ and ‘Group 2’ insurance categories.

With that in mind, here are 10 cars you could consider:

1. Ford Fiesta

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The Ford Fiesta is the best-selling car in the UK – there were over 3,900 registrations in August 2019 alone – and while it’s a Group 2 car, the models with smaller engines are a still good option for cheaper premium costs.

Read our full Ford Fiesta review.

2. Nissan Micra

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While the Nissan Leaf grabs most of the headlines, its stablemate the Nissan Micra remains a good option for cheaper insurance, with engine sizes of 900cc and 1.0 litres helping keep costs down in the cheaper Group 1.

Read our full Nissan Micra review.

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3. Fiat Panda

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If you remember the Fiat Pandas from the 1980s the sleek, third generation of the so-called ‘city car’ might take you by surprise. This quirky urban run-around comes in 900cc or 1.2L.

Read our full Fiat Panda review.

4. Dacia Logan

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The last few years have seen the Romanian manufacturer’s popularity grow and grow, and the Logan is a great value choice if you’re looking to save on your insurance costs with a 900cc and 1.0L option.

Read our full Dacia Logan review.

5. Skoda Citigo

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Slightly cheaper than its automotive cousins, the Volkswagen Up and Seat Mii, the colourful Citigo is a Group 2 model and has plenty of added options for anyone looking for a slick city drive.

Read our full Skoda Citigo review.

6. Kia Rio

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The UK has fallen in love with Korean motors over the last decade or so, and the Kia Rio is an excellent option if you’re looking for a Group 1 run-around that won’t leave you out of pocket.

Read our full Kia Rio review.

7. Seat Ibiza

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Named after the famous party island and with 1.0L versions planted firmly in insurance Group 2, the Ibiza is Seat’s best-selling car and a great supermini option.

Read our full Seat Ibiza review.

8. Volkswagen up!

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Offering plenty of range for those looking for cheaper insurance – with 29 versions in insurance groups 1 and 2 – the up! also comes with that trademark Volkswagen durability.

Read our full Volkswagen up! review.

9. Hyundai i10

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Another Korean car to make our list, not only is the i10 going through a revamp for its 2020 overhaul, the older models also provide a cheaper alternative with some versions in the range included in insurance Group 2.

Read our full Hyundai i10 review.

10. Vauxhall Corsa

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No list would be complete without the Vauxhall Corsa. It has two versions – the three door ecoFLEX and five door ecoFLEX – included in insurance Group 2.

Read our full Vauxhall Corsa review.

How does engine size / performance affect your car insurance?

Generally speaking, bigger engines mean more power, greater acceleration and a higher top speed. All of which means you’ll generally be deemed a ‘greater risk’ by insurance providers and potentially face a higher premium.

But this isn’t necessarily the case. Some off-road vehicles, for example, will have bigger engines than certain high-performance cars, yet won’t have quite the same high premium costs. This is due to the weighting of other differentiating factors, like top speed and driving style.

How does security affect your car insurance?

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If your car gets stolen, it’s likely your insurance provider will cover your loss – and that’s exactly why security features are important when it comes to calculating your level of risk and premium costs.

Ensuring your vehicle is equipped with the best security tech to put off thieves – including alarms, immobilisers and other devices that are ‘Thatcham Approved’  – can help lower your premium costs, and should be something to consider.

How do safety ratings affect your car insurance?

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Safety ratings – such as Euro NCAP – give an indication of not only how well a car will protect you and other road users in a collision but also any tech features that can help you avoid the collision in the first place.

This safety tech can help make you a safer driver that’s less likely to be involved in a collision, although be aware that insurance companies are usually more interested in your personal driving record than your vehicle’s Euro NCAP rating.

How do car modifications affect your car insurance?

Car modifications relate to any changes made to your vehicle that enhance it in some way – usually performance or aesthetics – although they can also include features like DVD players or immobilisers.

Most modifications will increase your premium, either because they increase performance or make them more likely to be broken into or stolen. Always inform your provider if you make any modifications, or you risk invalidating your cover.

What other factors affect your car insurance?

Alongside engine size, security features, safety rating and modifications, there are plenty of vehicle-specific factors that can influence your insurance calculation:

Damage and parts costs

The cost of various parts if any repairs are needed to a car, and the likely extent of damage; lower costs mean a lower group rating. The rarer or older the car, the harder it might be to find replacement parts, which could make them more expensive as a result.

Repair times

Types of cars that need longer repair times typically incur higher costs and will therefore be placed in a higher group rating. A customer-modified vehicle may require a specialist to repair it, which could be make it more expensive than a standard vehicle.

New car values

The more expensive the car is when new, the higher the cost of replacement or repair is likely to be, so the position it will hold in the car insurance groups list will be higher.

Parts prices

The Group Rating Panel studies a list of 23 common parts to 'compare one manufacturer's parts costs to another'. Lower costs likely mean a lower group rating.

Bumper compatibility

The structure and alignment of bumpers at the front and rear of a vehicle play an important part in protecting against damage in the event of collisions and accidents. Cars with bumpers that 'meet the insurer's criteria' can receive lower insurance ratings.

Make sure you stay covered and save money with our insurance guides:

 

 

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^ 10% of all customers buying Car Insurance Plus with us from 1st January 2020 to 30th June 2020 paid less than £165. Based on comprehensive Car Insurance Plus, purchased direct, excluding any additional products and upgrades, with payment on an annual basis. Your premium will depend on your circumstances and the level of cover you choose.