10 cheapest cars to insure in the UK this year – including iconic hatchback and Seat that’s impressively roomy inside
A GROUP of motoring experts have unveiled the 10 cheapest cars to insure in the UK for 2025.
According to CarGurus, drivers can find a good selection of vehicles with low-cost insurance policies – without having to compromise on practicality or certain creature comforts.
When it comes to car insurance, vehicles are categorised into groups ranging from group 1, the cheapest option typically reserved for small city cars, to group 50, which is the most expensive and generally applies to high-performance models.
These insurance groups are determined based on a variety of factors, including repair costs, parts prices, standard safety equipment, and security features.
To that end, here are 10 cars that fall into the lowest insurance groups, offering some of the most affordable policies available.
Volkswagen Polo – Insurance Group: 1 (depending on model)
The lower-powered 1.0-litre Polo, which produces a modest 79bhp, qualifies for group 1 insurance - but do be cautious with higher-powered models, as they fall into higher insurance groups.
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The Polo, which has been around since 1975, is now in its sixth generation, which launched in 2017.
It remains a practical, high-quality small car with a spacious and refined interior.
What's more, it's the perfect beginner-car for new drivers.
Kia Picanto – Insurance Group: 1 (depending on model)
The compact Kia Picanto is an excellent choice for cheap insurance, with some automatic models qualifying for group 1.
That said, CarGurus advises steering clear of the basic ‘1’ trim and opting for the ‘2’ trim, which includes features such as alloy wheels and air conditioning.
While the Picanto is ideal for city driving, the small 66bhp engine isn’t particularly quick.
Older Picantos and the slightly larger Kia Rio also offer affordable options, and both are backed by Kia’s renowned seven-year warranty.
Nissan Micra (2017–2019) – Insurance Group: 1 (depending on model)
One of Britain’s most beloved superminis, the Nissan Micra, has early 1.0-litre models that qualify for group 1 insurance.
While it’s not the quickest car, it offers excellent fuel economy, modern styling, and a crucial five-star safety rating.
The Acenta trim is the one to look out for, as it features extras such as climate control and touchscreen technology.
Enjoy:
- A choice of fuel type whether it's petrol, diesel, electric or hybrid
- A range of models from convertible, estate, saloon and many more
- A range of top brands such as Ford, Volkswagen, Toyota and BMW
- Financing options
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Volkswagen Up – Insurance Group: 1–2
The Polo’s smaller, quirkier sibling, the Up, is another fun and nimble city car that qualifies for group 1 insurance – provided you choose a 1.0-litre engine.
Impressively, despite its compact size, the Up offers decent boot space and room for four adults.
Its VW-owned counterparts, the Seat Mii and Skoda Citigo, are nearly identical and also deliver similarly low insurance costs.
Enjoy:
- A choice of fuel type whether it's petrol, diesel, electric or hybrid
- A range of models from convertible, estate, saloon and many more
- A range of top brands such as Ford, Volkswagen, Toyota and BMW
- Financing options
- Trusted dealers
Ford Fiesta (2017–2022) – Insurance Group: 2 (depending on model)
The nation’s favourite hatchback may have been discontinued in 2023, but it remains a top pick on the second-hand car market.
In fact, last year it was described as the ideal city car, with prices starting at under £5,000.
The 1.1-litre Fiesta in Style trim qualifies for group 2 insurance, making it an affordable option.
The Fiesta has always been a superb all-rounder, offering excellent handling and a fun driving experience – which is likely why it remains the UK’s best-selling car of all time.
Hyundai i10 – Insurance Group: 1–3
To qualify for group 1 insurance, drivers should look for the previous-generation Hyundai i10, built from 2014 to 2019, with the 1.0-litre engine.
Despite its compact size, the i10 is practical, roomy, and comfortable, much like the Picanto and the Up.
For those interested in the newer model, from 2019 onwards, it falls into group 3 but comes with improved refinement and equipment.
Renault Clio – Insurance Group: 3 (depending on model)
Almost as iconic as the Fiesta, the Renault Clio remains in production, though the cheapest insurance options are found with older models.
Specifically, Clios with the 1.0-litre SCe engine are the most affordable to insure, while still offering stylish looks, a spacious front cabin, and a large boot.
Seat Ibiza – Insurance Group: 2 (depending on model)
Much like the relationship between the Picanto and the i10, the Seat Ibiza is closely related to the VW Polo, sharing much of the same technology.
The Ibiza, however, boasts sportier styling.
The 1.0-litre non-turbo engine, producing 79bhp, qualifies for group 2 insurance, while still offering a roomy interior, good equipment levels, and excellent value for money.
Dacia Sandero – Insurance Group: 4 (depending on model)
Romanian manufacturer Dacia has built its reputation on affordability, and the Sandero is no exception.
Currently available from £13,795, the Sandero is set for a slight price increase in 2025 but will remain significantly cheaper than its rivals.
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It’s also one of the UK’s most affordable new cars to insure, even in its Essential trim, which includes features such as cruise control and a DAB radio.
Yes, it’s basic, but it’s also practical and highly economical to insure.