Currently reading: The cheapest new cars to insure 2025

Car insurance can hit your wallet hard, but there are a few models out there with surprisingly low premiums

Car insurance is up there with the worst drivers of the cost of living crisis, and finding the cheapest new cars to insure is a must-do, particularly for new drivers. 

According to data from comparison site Confused.com, the average premium increased by £284 in 2024, up year on year by 43% to a whopping £941.

But don’t fret. It appears there’s good news on the horizon. Prices have gradually dropped over the past few months, and the average quote is now around £834. 

That’s not exactly cheap, of course, but there is still a good choice of affordable cars in low insurance groups that can help to bring the cost down even further. 

This top 10 list features affordable cars ranked in order of the cheapest available car insurance quotes. Each quote is based on a 35-year-old male who lives in Swindon and works as a teacher. 

This driver commutes by car, parking it on the street during the day and in a residential space overnight. He drives 8000 miles per year. His licence has no penalty points and a full 18 years of no-claims bonus.

According to our research, the cheapest new car to insure in the UK today is the Toyota Aygo X. Read on to see the rest of the top 10, which consists mostly of superminis and hatchbacks, with the odd SUV here or there… 

 

https://www.autocar.co.uk/
  • Design8
  • Interior7
  • Performance5
  • Ride & Handling8
  • Costs8

Annual insurance premium £309.34
List price £16,515

The cheapest car to insure in the UK according to our research is the Toyota Aygo X, which, when selected with its entry-level Advance trim and 1.0-litre petrol engine, comes in at just over £300 a month.

The Toyota Aygo X is a solid city car with a playful interior, great ergonomics and a sophisticated chassis. Given its small stature, though, it is on the expensive side, and its 71bhp three-pot engine is rather wheezy.

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https://www.autocar.co.uk/
  • Design8
  • Interior7
  • Performance7
  • Ride & Handling8
  • Costs8

Annual insurance premium £316.67
List price £16,380

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This is one of the best new city cars you can buy, thanks to assured handling and a roomy interior with more technology than many rivals have. You will have to opt for the underwhelming 66bhp three-pot engine to keep insurance costs down, though.

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https://www.autocar.co.uk/
  • Design9
  • Interior8
  • Performance8
  • Ride & Handling9
  • Costs8

Annual insurance premium: £335.23
List price: £21.095

The Skoda Fabia isn't just one of the best small hatchbacks on sale today – it's also one of the cheapest to insure. It comes in at less expensive than the mechanically similar Volkswagen Polo and Seat Ibiza, but only just. It's the best-riding of the three, and its refinement even puts some luxury cars to shame. 

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https://www.autocar.co.uk/
  • Design8
  • Interior8
  • Performance8
  • Ride & Handling9
  • Costs8

Annual insurance premium £336.80
List price £19,795

The Ibiza remains a great choice six years after it was first introduced, thanks to its well-finished interior, responsive turbocharged engine and balanced chassis.

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https://www.autocar.co.uk/
  • Design7
  • Interior7
  • Performance6
  • Ride & Handling7
  • Costs8

Annual insurance premium £337.68
List price £18,945

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The Picanto's recent facelift addresses its key weaknesses: interior quality and technology. We've yet to drive the new version, but the outgoing car was comfortable and surprisingly good fun on the road, with agility that's seldom found in cars so cheap.

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https://www.autocar.co.uk/
  • Design8
  • Interior8
  • Performance8
  • Ride & Handling8
  • Costs8

Annual insurance premium £338.71
List price £21,210

If you want big-car refinement and comfort in a more affordable package, the Polo is a great choice. The 1.0-litre MPI petrol engine featured here lacks a turbo, so it can feel a little underpowered at times, but it does at least bring a big saving on insurance costs compared with the boosted TSI units.

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https://www.autocar.co.uk/
  • Design7
  • Interior8
  • Performance6
  • Ride & Handling6
  • Costs7

Annual insurance premium £344.25
List price £21,265

Hyundai's small hatchback comes in slightly more expensive to buy than the smaller i10 but obviously has much more practical benefit to it. It's a spacious car for its class, with a 352-litre boot and a roomy cabin. It's let down by some uninspiring engines, but can you argue with that insurance cost?

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https://www.autocar.co.uk/
  • Design6
  • Interior7
  • Performance8
  • Ride & Handling7
  • Costs7

Annual insurance premium £345.89
List price £24,895

Volkswagen’s small crossover is one of the larger cars on this list, but its remarkably cheap to insure thanks to its tiny 1.0-litre petrol engine selection. It’s a stylish model too, with decent entry-level specification, although the Polo will probably handle your commute just as easily.

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https://www.autocar.co.uk/
  • Design8
  • Interior7
  • Performance7
  • Ride & Handling7
  • Costs9

Annual insurance premium £348.62
List price £14,200

Starting from just £14,200, the Dacia Sandero is one of the cheapest cars on sale. It's also one of the cheapest to insure and overall represents great value, with most of the equipment you'd ever want in a car, a comfortable ride and reasonable practicality for its size. 

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https://www.autocar.co.uk/
  • Design7
  • Interior7
  • Performance7
  • Ride & Handling7
  • Costs7

Annual insurance premium £349.35
List price £21,265

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The second Kia on this list, the Stonic is equally good value when seeking an insurance quote. First launched in 2017, the compact SUV is starting to feel its age - but it's still a decent option for couples or small families. 

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artill 29 January 2025

I see that EVs dont make a great showing in this top 10!

LP in Brighton 1 November 2023

Agreed, this makes no sense. Surely all things being equal there should be a direct correlation between the Group Rating and cost to insure? Otherwise why bother with the rating. This "guide effectively tells us there is no significant difference between any of the cars listed,

si73 1 November 2023
Your job, if you can find it from the limited list on insurance company website drop down menus, makes a big difference for quotes, I have before had at least two choices that were close to my job, if not exact, so I chose the cheaper one.
Also looking at the insurance groups shows what a nonsense the whole thing is, the picanto is a lower group and cheaper to buy than the 500 yet costs more, surely the lower value and insurance group should make it cheaper, same for the MG, a lower group and cost than the 500 and panda, yet more expensive to insure. What's the point of the groupings? They serve no purpose when a group 1 car is more expensive than a group 10.