10 cheapest cars to insure in 2025

Car insurance costs are climbing, and for new drivers especially, the premium can be just as painful as the car payment itself. But good news: not all cars cost the same to insure. If you're looking to cut your insurance bill in 2025, your choice of vehicle makes a big difference.

We’ve rounded up 10 of the cheapest cars to insure in the UK this year, based on their insurance group, safety rating, and affordability when it comes to repairs. Whether you're after a compact city car, a smart first-time buy, or a reliable second-hand option, this guide will help you choose a model that won’t blow your insurance budget sky-high.

What is the cheapest car to insure in 2025?

The Hyundai i10 is currently the cheapest car to insure in 2025. It consistently sits in insurance Group 1 – one of the lowest insurance groups, thanks to its small engine size, excellent safety features, and low repair costs, which is what insurers want to see.

Cars in Group 1 insurance are usually the cheapest cars to insure. They tend to be smaller, slower, and safer cars with strong security features and fewer claims history. This means insurers see them as less risky, which is perfect for new drivers or anyone looking to lower their insurance premiums.

The Association of British Insurers assigns each car model to a group based on things like repair time, replacement costs, and safety systems. For low-cost car insurance, focus on models in groups 1 to 10 – they average around £442 a year.

Top 10 cheapest cars to insure in 2025

These are the cheapest cars to insure in 2025, based on ratings, costs, and quotes, based on data from Finder.

1. Hyundai i10

Insurance group: 1–4

Estimated average annual premium: £579.71

Compact, affordable, and consistently one of the cheapest cars to insure. The i10 is known for its reliability, low repair costs, and basic trims. It’s also packed with safety features and modern tech, even at entry level, making it perfect for new drivers or city-based commuters.

Great for: New drivers or city-based commuters

2. Kia Picanto

Insurance group: 3–5

Estimated average annual premium: £608.48

The Picanto is a budget-friendly city car that still offers solid value for money. It’s consistently reliable, particularly when it comes to electrics, and even the base models come equipped with key features like air conditioning, Bluetooth connectivity, and a touchscreen system.

Great for: Budget-conscious drivers

3. Skoda Fabia

Insurance group: 2–7

Estimated average annual premium: ~£622.66

A spacious, practical hatchback with the bones of a VW Polo but at a lower cost. The Fabia brings good fuel efficiency and a good driving record among owners. It also benefits from cheap insurance, affordable repair costs, and excellent safety systems.
Great for: Growing families and young professionals

4. Toyota Aygo X

Insurance group: 5–9

Estimated average annual premium: ~£663.04
This Toyota micro-crossover blends the look of a mini SUV with the footprint of a city car. The Aygo X includes an impressive infotainment system, better visibility, and smart safety features, making it affordable to run and insure.
Great for: Style-conscious drivers who want to keep their insurance quotes low.

5. SEAT Ibiza

Insurance group: 2–8

Estimated average annual premium: ~£677. 57
With a punchy, efficient engine, the SEAT Ibiza balances fun with function. It’s known for reliably carrying longer trips, with a solid engine and safety systems.
Great for: Drivers who want versatility without forking out too much on the insurance.

6. Dacia Sandero

Insurance group: 2–6

Estimated average annual premium: £618.13
The most affordable brand-new car in the UK also happens to be one of the cheapest cars to insure. While basic, the Sandero brings unbeatable value with durable build quality and reasonable security features, too.
Great for: Drivers who want a no-frills drive and minimal running costs.

7. Ford Fiesta

Insurance group: 2–7

Estimated average annual premium: £712.71
The Fiesta is a household name for a reason – it blends great handling with a comfortable ride, solid safety features, and widespread garage support, which helps to keep your Ford's repair costs low.
Great for: Learners and recently passed drivers

8. Renault Clio

Insurance group: 4–8

Estimated average annual premium: £738.68

Stylish and well-equipped, the Clio pairs strong safety ratings with an excellent dependability track record. Many insurers associate it with responsible driving and lower claims history, which helps to keep insurance premiums in check for Clio drivers.
Great for: Anyone wanting a bit of style without sacrificing affordability.

9. Volkswagen Polo

Insurance group: 1–8

Estimated average annual premium: £713.88

The Polo brings a premium feel in a compact, cost-effective package. Highly rated by experts for safety and reliability, its build quality and modest engine size make it easy to insure, especially in lower trim levels and with optional black box policies.

Great for: Those who want a built-to-last car at a cheap insurance premium.

10. Vauxhall Corsa

Insurance group: 2–9

Estimated average annual premium: £562

A regular fixture in the UK’s top 10 best-selling cars, and for good reason. The Corsa is now better equipped, more efficient, and cheaper to run than ever, thanks to updated engines and a lighter design.
Great for: New drivers who want efficiency and a ride whose premiums won’t break the bank.

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How to get the cheapest car insurance

There are a number of things you can do to get the cheapest car insurance, including:

Use a black box: This measures your driving behaviour, including harsh braking, speeding, and late-night trips, which is partly what your insurer bases their premium on.
Keep your mileage low: Lower mileage often means fewer chances of accidents, which insurers see as lower risk.
Build your no-claims bonus over time: A strong no-claims bonus can shave off hundreds from your insurance premiums each year.
Avoid penalty points and speeding fines: Even a single speeding ticket or set of penalty points can increase your premium, especially if you’re a younger driver.
Compare providers on a trusted comparison site: Don’t auto-renew without checking what else is out there. Comparison sites help you shop around for the best deals on cheap car insurance.
Choose a strong, secure car: Cars with top safety and security ratings tend to fall into lower insurance groups as insurers see them as less likely to be stolen or involved in serious accidents.
Avoid modifications and stick to standard trims: Anything from alloy wheels to an engine upgrade can bump your car into a higher insurance group.
Avoid submitting small claims: These can affect your no-claims bonus and increase your premiums in the long run. If you can, pay out of pocket for minor scratches and repairs to keep your claims history clean.
Choose a car with a smaller engine: Cars with lower engine sizes (typically under 1.2L) are seen as less risky and tend to fall into lower insurance groups, which usually means cheaper premiums.

Are there cars to avoid for cheap car insurance?

If it’s cheap car insurance you’re after, avoid the following cars:

Mini Cooper car insurance costs

It may be compact, but the Mini Cooper is known for its engine/exhaust modifications. This can push it into a higher insurance bracket as it increases the risk of serious accidents, becomes less cost-effective to replace, and more attractive to thieves, raising overall Mini repair costs – all of which insurers factor into their pricing.

Ford Focus car insurance costs

The Ford Focus is known for dependability, but higher-end trims come with larger engines and more advanced features, which can lead to a larger premium. Larger engines = more power and more risk – insurers don’t like too much risk. Add to that rising Ford repair costs for certain trims, and your insurance quote can quickly climb compared to entry-level models.

Small SUV insurance costs

The Nissan Juke or Ford Puma may seem like reliable choices, but they’re surprisingly expensive to insure. High repair costs, especially in the case of Nissan repair costs, can be above average for parts and labour. If your car costs more to fix, your insurer will have to pay more in the event of an accident, so they pass that cost to you in their premiums.

EV insurance costs

It’s a similar case for electric vehicles – expensive battery packs, longer repair times, and limited availability for parts cost insurers more to cover, so their premiums are higher as a result.

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FAQs

What’s the cheapest car to insure for a 16-year-old?

The Hyundai i10, Kia Picanto, and Skoda Fabia are some of the cheapest cars to insure for 16-year-olds. Remember: In the UK, you can’t legally drive on public roads until you turn 17. However, if you’re planning ahead, these makes and models are usually a solid choice for new, young drivers.

What’s the lowest car insurance group?

The lowest car insurance group in the UK is Group 1. Cars in Group 1 are usually the cheapest to insure, and are often small, safe, and cheap to repair.

Are older or newer vehicles cheaper to insure?

It depends on the car, but generally, newer vehicles with modern safety systems and security features can be cheaper to insure than older models. However, older cars may have lower value, which can reduce your insurance premium. That said, older cars include fewer features like parking sensors and immobilisers, which could affect premium pricing.