Car insurance for new UK drivers is notoriously expensive. If you're young, recently qualified, or in certain postcodes, premiums can cost more than the car itself.
Frustratingly, the typical 'starter cars' can attract the highest rates precisely because they're popular with new drivers who tend to have more accidents.
We've looked beyond just insurance groups to find the most affordable options.
Your actual premium depends on multiple factors: Statistical risk data, claims frequency, repair costs, and vehicle popularity among specific age groups.
This reveals surprising results.
Some larger or more powerful cars actually cost less to insure than traditional first cars, despite higher insurance groupings.
We've identified specific models and trim levels offering the best insurance value, considering premium costs and practical factors like reliability, safety features, and running costs.
This guide will help you find cars with genuinely affordable insurance without compromising quality or practicality.
Best Cheap New Cars to Insure 2025
Volkswagen Polo
Retail Price: £21,210.00
Savings: £2,512.00
Motorfinity Price: £18,698.00
Insurance Group : 1
Specific trim: Life 5dr with 1.0-litre 80PS engine
Repair Cost Complexity: Medium
Statistical Crash Data: Excellent
Advanced Safety Features: Strong
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The Volkswagen Polo earns its place among the best cars for affordable insurance thanks to its excellent safety credentials and composed handling, which help reduce accident likelihood.
The entry-level 1.0-litre 80 engine in Life trim sits in insurance group 1-2, making it particularly economical for new drivers despite its premium badge.
While Volkswagen parts are widely available, they typically cost more than budget brands, though the simple naturally-aspirated engine keeps maintenance straightforward.
The Polo consistently shows lower-than-average accident rates for its class, particularly for serious incidents, which insurers view favourably.
Its strong safety package includes automatic emergency braking, lane-keeping assistance, speed-limit recognition and driver drowsiness monitoring as standard. Even on base models, it helps to further reduce premiums for young or newly qualified drivers.
Hyundai i10
Insurance Group : 3 (for 1.2 Advance)
Specific trim: 1.2 Advance 5dr
Repair Cost Complexity: Low
Statistical Crash Data: Good
Advanced Safety Features: Comprehensive
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The Hyundai i10 makes our list of best cars for affordable insurance thanks to its strong safety features and exceptional reliability record, which significantly reduces the likelihood of claims.
The 1.2-litre petrol in entry-level Advance trim sits in insurance group 3, offering an ideal balance of performance and affordability for new drivers.
The i10's repair costs are relatively low due to Hyundai's widespread dealer network and competitively priced parts. Its simple mechanical layout keeps maintenance straightforward.
The car consistently shows better-than-average crash statistics compared to competitors in its class, with fewer reported incidents resulting in injuries.
Its comprehensive safety package includes automatic emergency braking with pedestrian detection, lane-keeping assistance and speed-limit assist as standard, all contributing to lower premiums while providing reassurance for inexperienced drivers navigating busy urban environments.
Kia Picanto
Retail Price: £26,155.00
Savings: £3,366.00
Motorfinity Price: £22,789.00
Insurance Group : 2 (for 1.0 2 trim)
Specific trim: 1.0 2 5dr
Repair Cost Complexity: Low
Statistical Crash Data: Moderate
Advanced Safety Features: Good basic package
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The Kia Picanto earns its place on our list of insurance-friendly cars thanks to a combination of factors: An extremely low insurance group rating and Kia's market-leading seven-year warranty, substantially reduces claim likelihood for mechanical failures.
The entry-level 1.0-litre engine in '2' trim offers the optimal balance between affordability and equipment, falling into insurance group 2 while including essential safety technologies that insurers value.
While not as refined as some competitors, the Picanto's straightforward mechanical design and easily-sourced replacement parts keep repair costs predictable after minor incidents, further contributing to its insurance appeal for budget-conscious and newly qualified drivers.
Dacia Sandero
Retail Price: £15,200.00
Savings: £507.00
Motorfinity Price: £14,693.00
Insurance Group : 1-2 (for 1.0 TCe Bi-Fuel Expression)
Specific trim: 1.0 TCe Bi-Fuel Expression 5dr
Repair Cost Complexity: Very low - Simple mechanical components.
Statistical Crash Data: Mixed, two star NCAP rating.
Advanced Safety Features: Basic
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The Dacia Sandero earns its place among insurance-friendly cars primarily due to its extraordinarily low purchase price and classification in the lowest possible insurance groups (1-2).
The 1.0 TCe Bi-Fuel Expression trim offers the optimal balance between affordability and equipment while keeping premium costs minimal.
Its straightforward mechanical design and use of established Renault-sourced components means parts are inexpensive and readily available. This significantly reduces repair bills after minor incidents.
While its safety rating isn't class-leading, the inclusion of essential safety features like automatic emergency braking helps keep insurance costs down.
For budget-conscious drivers, the Sandero represents the lowest-cost option for comprehensive new car ownership when factoring in both purchase price and insurance premiums.
Toyota Aygo X
Retail Price: £18,594.00
Savings: £1,602.00
Motorfinity Price: £16,992.00
Insurance Group : 2 (for 1.0 VVT-i Edge)
Specific trim: 1.0 VVT-i Edge 5dr
Repair Cost Complexity: Low
Statistical Crash Data: Good
Advanced Safety Features: Comprehensive
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The Toyota Aygo X earns its place among the most insurance-friendly cars thanks to its combination of a low insurance group rating and Toyota's legendary reliability record. This significantly reduces the likelihood of claims.
The 1.0-litre VVT-i in Edge trim offers the optimal balance between equipment and affordability. The comprehensive suite of safety features helps to keep premiums down despite its city car dimensions.
Toyota's reputation for building mechanically robust vehicles means insurers view the Aygo X as a lower-risk proposition, while the straightforward non-turbocharged engine design keeps repair costs predictable after minor incidents.
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With the potential for Toyota's class-leading 10-year warranty (with annual main dealer servicing), insurance companies have additional reassurance that mechanical issues will be addressed promptly, further benefiting premium costs for new and young drivers.
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Seat Ibiza
Retail Price: £23,500.00
Savings: £3,549.00
Motorfinity Price: £19,951.00
Insurance Group : 3-5 (for 1.0 TSI 95 FR)
Specific trim: 1.0 TSI 95 FR 5dr
Repair Cost Complexity: Medium
Statistical Crash Data: Excellent - Five-star Euro NCAP rating
Advanced Safety Features: Comprehensive
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The Seat Ibiza earns its place among the best cars for affordable insurance thanks to its impressive balance of safety credentials and engaging driving dynamics.
The 1.0 TSI 95 in FR trim sits in insurance groups 3-5, making it surprisingly economical to insure despite its sporty appearance and entertaining handling.
While repair costs are slightly higher than some budget alternatives due to the FR trim's body styling, the excellent build quality means fewer claims overall.
The Ibiza's exemplary safety record, evidenced by its five-star Euro NCAP rating, further helps keep premiums down, while the comprehensive safety package provides reassurance for both new and experienced drivers.
For those seeking a small car that's genuinely enjoyable to drive without insurance premium penalties, the Ibiza represents one of the best-value propositions in its class.
Skoda Fabia
Retail Price: £22,145.00
Savings: £3,358.00
Motorfinity Price: £18,787.00
Insurance Group : 3-5 (for 1.0 TSI 116 Design Edition)
Specific trim: 1.0 Tsi 116 Design Edition 5dr
Repair Cost Complexity: Low - Medium
Statistical Crash Data: Excellent
Advanced Safety Features: Comprehensive
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The Skoda Fabia earns its place among the most insurance-friendly cars thanks to its excellent safety credentials and sensible engineering approach.
The 1.0 TSI 116 in Design Edition trim offers an ideal balance between performance and affordability, falling into reasonable insurance groups 3-5 despite its spirited engine and generous equipment levels.
The Fabia's outstanding safety record, evidenced by its five-star Euro NCAP rating, significantly reduces accident severity risk, while the comprehensive safety package helps prevent incidents altogether.
Skoda's reputation for practical, reliable vehicles means fewer claims overall, which insurers reflect in competitive premiums. While more powerful than the base engine, the 116hp variant delivers a perfect blend of everyday drivability without pushing into higher insurance brackets.
For drivers seeking a refined, spacious small car with reasonable insurance costs, the Fabia represents exceptional value through its combination of practicality, proven Volkswagen Group technology, and strong safety performance.
Renault Clio
Retail Price: £20,196.00
Savings: £1,803.00
Motorfinity Price: £18,393.00
Insurance Group : 3-4 (for 1.0 TCe 90 Techno)
Specific trim: 1.0 TCe 90 Techno 5dr
Repair Cost Complexity: Medium
Statistical Crash Data: Very good - 5 star NCAP rating
Advanced Safety Features: Comprehensive
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The Renault Clio earns its place among the most insurance-friendly cars thanks to its excellent safety credentials and sensible engineering choices.
The 1.0 TCe 90 in Techno trim offers an ideal balance of equipment and affordability, falling into insurance groups 3-4 despite its generous specification.
The Clio's outstanding five-star Euro NCAP safety rating, particularly its strong adult occupant protection scores, helps keep premiums reasonable despite its stylish appearance.
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While some elements of its modern design can make certain repairs more costly than ultra-budget alternatives, Renault's extensive parts network and the car's widespread popularity ensure maintenance remains straightforward for insurers to manage.
For drivers seeking a genuinely enjoyable small car with upmarket features without facing prohibitive insurance costs, the Clio represents an excellent compromise. It offers the refinement and quality feel of more expensive alternatives while maintaining affordable premiums.
Toyota Yaris Hybrid
Retail Price: £23,140.00
Savings: £4,217.00
Motorfinity Price: £18,923.00
Insurance Group : 13-15 (for 1.5 Hybrid Icon)
Specific trim: 1.5 Hybrid Icon 5dr CVT
Repair Cost Complexity: Medium
Statistical Crash Data: Excellent - 5 star euro NCAP rating
Advanced Safety Features: Outstanding
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The Toyota Yaris Hybrid earns its place among affordable-to-insure vehicles despite its higher insurance group (13-15) for several compelling reasons.
First, Toyota's legendary reliability record significantly outweighs the numerical insurance group classification, as insurers recognise that these vehicles generate fewer claims overall.
The Yaris's exceptional safety credentials - including its five-star Euro NCAP rating with superior protection scores and comprehensive standard safety features like Pre-Collision System, Lane Assist, and centre airbags - reduce both accident frequency and severity, leading many insurers to offer more favourable premiums than the group rating might suggest.
Additionally, the hybrid system's proven durability (evidenced by Toyota hybrids routinely achieving 500,000+ miles on original components) means mechanical failures are remarkably rare, further reducing claim likelihood.
The industry-leading warranty, extendable to 10 years with servicing, provides insurers with additional reassurance that any issues will be promptly addressed by Toyota rather than resulting in insurance claims.
Real-world data shows Yaris owners make fewer claims than owners of comparably-sized conventional vehicles, allowing insurers to offer more competitive rates than the official grouping would indicate.
How can young drivers reduce their insurance costs beyond just choosing a lower insurance group car?
Young drivers can reduce insurance costs beyond choosing a lower insurance group car through several effective strategies. Adding an experienced named driver can cut premiums by 20-25%, while telematics policies tracking good driving behaviour offer 30-40% savings.
Increasing your voluntary excess lowers premiums, and paying annually saves 10-15% versus monthly payments.
Other effective strategies include:
- Taking advanced driving courses like Pass Plus.
- Building a No Claims Bonus year-on-year.
- Installing approved security devices.
- Comparing quotes across multiple channels.
- Choosing basic car specifications.
- Accurately estimating your annual mileage.
Combining these approaches can potentially slash premiums by 50-60%, making car ownership significantly more affordable for new drivers.
Do black box policies provide significant savings for specific car models?
Black box policies can provide significant savings for specific car models, particularly those that new drivers commonly choose.
The effectiveness varies based on several factors including the car's performance capabilities, typical usage patterns, and statistical risk profiles.
Smaller city cars with modest engines like the Hyundai i10, Volkswagen Polo, and Toyota Yaris typically see the greatest percentage reductions (often 30-50%) with telematics policies.
These vehicles are well-suited to demonstrating careful driving habits that black boxes reward, such as gentle acceleration and moderate speeds.
Midsize family cars see savings of 25-40%, while sportier models with larger engines benefit less due to their inherently higher risk profiles.
Urban drivers typically receive larger discounts than rural ones, with the greatest savings occurring in the first two years before traditional no-claims discounts begin to catch up.
Is it better to buy a newer car with advanced safety features or an older car with a lower insurance group?
Choosing between a newer car with advanced safety features or an older car with a lower insurance group involves weighing immediate costs against long-term benefits.
While lower-group vehicles offer upfront premium savings, newer cars with safety technologies like automatic emergency braking can qualify for insurer discounts (10-15%) and reduce accident likelihood.
Your circumstances matter. Young drivers often benefit more from lower-group vehicles, while families might prioritise safety features.
.The ideal compromise for many is a 2-4 year old vehicle with modern safety systems that has already depreciated significantly but still provides good protection and reasonable insurance costs.
Motorfinity
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Our strong relationships with various manufacturers allow us to present these vehicles at highly competitive terms.
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