Getting a good deal on car insurance can be a real minefield, especially for young drivers, as there are so many factors involved in how insurance premiums are calculated. The driver’s age, occupation, location and driving record all play a part, but one of the best ways to reduce the cost is to buy a car with a low insurance group.
Car insurance groups run from group one (the cheapest, for small city cars) to group 50 (the most expensive, for high-performance cars) and are calculated by the insurance industry depending on a variety of factors such as repair costs, parts prices, standard safety equipment and security features. Fitting a telematics unit – also known as a black box – to monitor how you drive can also reduce your car insurance quotes.
Here's our pick of the best new cars with low insurance groups to keep your motoring costs down.
The Cheapest Cars to Insure in 2024
- Volkswagen Polo (2017-present)
- Kia Picanto (2017-present)
- Nissan Micra (2017-2022)
- Volkswagen Up (2012-2023)
- Skoda Fabia (2021-present)
- Ford Fiesta (2017-2023)
- Hyundai i10 (2019-present)
- Renault Clio (2019-present)
- Seat Ibiza (2017-present)
- Dacia Sandero (2021-present)
Volkswagen Polo (2017-present)
Insurance Group: 1 (depending on model)
Until the model’s most recent facelift at the end of 2021, Volkswagen had managed to keep its lower-powered Polo models in group one for the very cheapest insurance. It’s an impressive feat and while you will have to settle for the 1.0-litre engine with just 79bhp (you can’t expect the higher-powered TSI turbo engines to qualify for group one classification from insurance providers), you can specify Match, Beats or United trim levels, so you shouldn’t feel too short-changed.
The latest model’s lowest insurance rating is group three, for the 1.0-litre 80hp model in Life trim. The rest of the Polo range sits between group eight and group 12. If you accept you won’t be travelling very fast, it's a superb car on many levels, with a spacious interior and one of the largest boots in the supermini class. Fixtures and fittings are top quality and the controls have that solid feel you'd expect from a Volkswagen. It’s a refined motorway cruiser, too, and while it’s not as much fun to drive as a Ford Fiesta, it’s surefooted and pleasant enough. The five-star Euro NCAP rating means it’s a safe choice, too, especially for new drivers.
Volkswagen Polo Review
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Kia Picanto (2017-present)
Insurance Group: 1 (depending on model)
The Kia Picanto is a good example of the sometimes mysterious ways in which insurance groups work. You would think that the smallest 66bhp engine, with the entry-level 1 trim level, would be in insurance group one – but it’s actually in group five. However, the same car with the same engine, an automatic gearbox and a higher 2 trim level is in insurance group one. Go figure.
We’d advise against the 1 trim level anyway, as it’s a little lacking, but 2 adds items such as alloy wheels, air conditioning and electric windows. The automatic gearbox is slightly less economical than the manual and the engine is no ball of fire, as 0-62mph takes a leisurely 16.6 seconds. But for nipping around town, the Kia Picanto in this specification is a fine choice, with light controls and decent handling. The ride can be a little bouncy around town, but it's still a good choice if cheap car insurance is your main requirement.
Many older Picantos with similar engines and trim levels were also in insurance group one, so they can be very cheap used buys on every level and, if you need more space, the Picanto's bigger brother, the Kia Rio, is well worth a look. It has the same easygoing driving experience as the Picanto, and certain models are also in insurance group one. Whichever model you pick, it’ll have KIa’s brilliant seven-year warranty (limited to 100,000 miles), meaning used examples could well have some of that cover left.
Kia Picanto Review
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Nissan Micra (2017-2022)
Insurance Group: 1 (depending on model)
Previous generations of the Nissan Micra were nothing to write home about, but that changed when the fifth generation debuted in 2017. The styling is sharp and modern, it has a larger-than-average boot, an excellent safety rating (it scored a full five stars in Euro NCAP's crash test) and decent equipment levels.
No model in the line-up from 2020 onwards sits in insurance group one, but 2017-2019 Micras fitted with the 70bhp 1.0-litre petrol engine do. It’s not the most exciting engine and can struggle a little, especially when the car is fully loaded, but it delivers good official fuel economy, and if it’s cheap insurance costs you’re after, then it certainly ticks the right boxes. It was available in Visia, Visia+ and Acenta trim levels, and we’d recommend looking out for an Acenta model, which has plenty of standard equipment including climate control, a touchscreen system and Apple CarPlay and Android Auto. If you're happy with the slightly lacklustre engine, then it’s a good option for affordable insurance.
Nissan Micra Review
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Volkswagen Up (2012-2023)
Insurance Group: 2 (depending on model)
Those strange anomalies in the world of insurance groups are yet again demonstrated by the Volkswagen Up. Given that the larger, more expensive and more powerful Volkswagen Polo falls into insurance group one, it seems odd that the smaller, cheaper and less powerful VW Up’s lowest insurance rating is group two (which will still make for pretty cheap premiums).
However, that only applies to the newest versions of the VW Up. Earlier models originally fell into group one, specifically those with the 59bhp 1.0-litre three-cylinder engine. You’ll have a choice of trim levels, too, with the original Take Up, Move Up and High Up trim levels fitted with this engine all available in group one. While 59bhp might not sound like much power, in a car as small and light as the Up it’s still enough for pottering around town.
The Up's small footprint and nimble nature also make it a great city car, and it's genuinely fun to drive. It also has more luggage capacity than most of its direct rivals, and can comfortably seat four adults.
If you can’t find a used example of the Up that you like, these same attributes, and importantly, the same low insurance ratings, also apply to equivalent versions of the Seat Mii and Skoda Citigo. Importantly, the other city-car triple-act of the time - the trio of the Citroen C1, Peugeot 108 and Toyota Aygo - couldn’t match the Volkswagen Group cars for low insurance groupings, and neither could rivals like the Fiat 500, Ford Ka and Vauxhall Viva.
Volkswagen Up Review
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Skoda Fabia (2021-present)
Insurance Group: 1 (depending on model)
The Skoda Fabia might not strike you as the most desirable of small cars – it looks a little dowdy compared to its fellow Volkswagen Group rivals such the Volkswagen Polo and the Seat Ibiza – but it’s hugely competent in most departments and has the added bonus of group one insurance. You will have to choose the entry-level engine, a 1.0-litre petrol with a paltry 59bhp, and it’ll have to be the hatchback, as the estate version isn’t available with the lowliest engine option.
The SE model has plenty of equipment though, including air-conditioning, front- and rear parking sensors, alloy wheels, Bluetooth and a 6.5-inch touchscreen infotainment system and the Fabia's strongest suit is its versatility. It’s a very roomy car with ample leg- and head room front and back, and a surprisingly big boot. It’s pleasant to drive, too. Granted, with a 16.2-second 0-62mph time, progress will be on the leisurely side, but you’ll certainly be comfortable while pottering along, as it absorbs bumps and ruts very effectively. It’s safe, reliable and an eminently sensible buy, with generally low running costs.
Skoda Fabia Review
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Ford Fiesta (2017-2023)
Insurance Group: 2 (depending on model)
The Ford Fiesta is one of the best small cars there is, offering a great blend of performance, space, equipment and, best of all, fun. It’s a genuinely entertaining car to drive, even in its lowest-powered guises. The current Fiesta line-up doesn’t include any models in insurance group one, but seek out a 1.1-litre petrol model from the pre-2022 range with the Style trim level, and you’ll be looking at insurance group two, which is a small price to pay for such an entertaining car.
The 1.1-litre engine is a little slow, but the Fiesta more than makes up for that with its entertaining chassis. It has an excellent blend of talents that make it a very well-rounded machine and it’s just a great car to drive and own.
Ford Fiesta Review
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Hyundai i10 (2019-present)
Insurance Group: 3 (depending on model)
The current Hyundai i10 is one of our favourite city cars, and offers the sort of sophistication that you expect from a car in the class above. The lowest insurance group available for the current model is the group three SE Connect, which gets reasonable standard equipment, including air conditioning and electric windows. Its 66bhp 1.0-litre engine does need to be worked hard, however.
If you want an i10 with insurance group one, the previous generation, built from 2014 to 2019 will see you right. You’ll need to look for the 1.0-litre engine that was available with various different trim levels, and we think the posh Premium model is the best buy. Later examples will also benefit from the remainder of Hyundai’s excellent five-year warranty. Sometimes older models can fall short of expectations, but this shouldn’t be the case with the i10. After all, it was crowned our Best Used City Car in the 2019 CarGurus Used Car Awards.
It’s practical, roomy (it has five seats as standard, which isn’t always the case with city cars) and has a decent-sized boot. It also rides well, so it's a comfortable companion around town.
Hyundai i10 Review
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Renault Clio (2019-present)
Insurance Group: 3 (depending on model)
The Renault Clio is a classy and grown-up feeling supermini with pleasingly curvy styling and a smart and spacious interior. Spacious, that is, for front-seat occupants and in terms of cargo-carrying capacity – the penalty for a big boot is rear-seat space that is fine as long as you’re not too tall.
There are many versions of the Clio available, some of which are downright plush, but to get the lowest insurance group, you’ll need to find a low-spec model trim fitted with the 1.0-litre SCe engine. With just 74bhp it’s hardly a quick car, but then that’s probably in part what makes it cheap to insure. The only snag is that Renault no longer sells this engine as a brand-new car, so you’ll have to seek out a nearly new or secondhand one.
Renault Clio Review
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Seat Ibiza (2017-present)
Insurance Group: 2 (depending on model)
The Ibiza is closely related to the Volkswagen Polo in terms of its mechanicals and technology, but the Spanish offshoot of the VW Group dresses its supermini in a rather more snazzy set of clothes than the ‘mothership’ VW does with its Polo.
Things are a little less vivacious inside, but at least all Ibizas come furnished with some reasonable standard equipment, including a touchscreen infotainment system. It’s also blessed with plenty of room for four and a decent-sized boot. The cheapest car to insure in the range is the one with the 1.0-litre non-turbocharged MPi petrol engine, however, which musters just 79bhp.
Seat Ibiza Review
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Dacia Sandero (2021-present)
Insurance Group: 4 (depending on model)
Not only is the Dacia Sandero one of the cheapest new cars on sale in the UK, it also manages to be a reasonable-sized family car that doesn’t actually feel like that much of a budget choice. Dacia has dropped the entry-level Access model from the range (but that really was a very basic car), so the entry point is now the Essential trim level, which comes with cruise control and a DAB radio among other goodies. It’s also still impressively cheap to insure, falling into the group 4 insurance category.
Dacia Sandero Review
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