The Top 10 Cheapest cars to insure for new drivers

For new drivers it can be tough to get affordable car insurance, particularly if you’re young. Statistically, newer drivers are significantly more prone to accidents, with 20% of new drivers crashing within a year of passing their test. Not because they’re reckless or even young, but because they’re new and have little experience on the roads. Therefore, insurers will categorise new, especially young, drivers as higher-risk clients.

While this may seem discouraging, once you know why insurance costs more, you can start to look for ways to reduce costs. For new drivers, choosing a car in the lowest insurance group can make all the difference in keeping costs down. Insurance groups are used by insurance providers as a guideline to work out the cost of premiums offered to customers. 

There are 50 groups in total - cars in group one are the cheapest to insure, while those in group 50 are the most expensive. For example, a Peugeot 206 will typically fall into groups seven to 11, making it relatively cheap to insure. Whereas a BMW Z4 will likely fall between groups 34 to 37, so will cost significantly more to insure.

While having a car in a lower group doesn’t necessarily mean you’re guaranteed to get cheaper car insurance, it definitely helps. Other factors will be taken into consideration too, such as your driving record, where you live, age, job title, how you’ll use the car and the exact make and model of the car you’re looking to insure. 

Fortunately, there are some cars that are perfect for new drivers. They're affordable, reliable, have low running costs, and most importantly, offer cheap insurance as they’re in lower insurance groups. Money Expert’s commercial director Liz Hunter has collated a list of the Top 10 cheapest cars to insure for young drivers and the costs associated with a new car insurance policy.

Ford KA

The Ford KA is a solid small car that offers more space than many of its similarly priced competitors and averages around £782 a year for new drivers in insurance. To qualify for group one insurance and get the most affordable premiums, you’ll need to go with the entry-level 1.2 petrol engine offering 69 brake horsepower (70PS). Ensure that your car's registration date is before August 2018. From that date onwards, the insurance cost for this engine-trim combination increased due to its reclassification into group three.

TOP TIP: If the Ford KA doesn’t quite tick all your boxes, consider its big sister car the Ford Fiesta. It’s another fantastic, affordable option for first-time drivers, and there’s thousands of used models to choose from. You can expect to pay around £1,266 a year on a Ford Fiesta as a new driver.

Renault Clio

The Renault Clio has been a staple of the small car market since its debut in 1990, earning the prestigious title of European Car of the Year twice, first at launch and again in 2005. The Clio blends affordability with style, making it an attractive option for new drivers seeking a fashionable yet budget-friendly vehicle. 

With insurance groups ranging from three to 27, the Clio offers relatively low premiums for entry-level models. On average, new drivers can expect to pay around £800 annually on car insurance.

Nissan Micra

The Nissan Micra has been a trusted companion for learners and new drivers for years, and it's easy to see why. It’s easy to drive, comfortable, and forgiving, making it the perfect choice for new drivers still getting the hang of things behind the wheel. 

As a new driver, we all know that the cost of car insurance can feel like a heavy burden. However, with looking for insurance on a Nissan Micra, you can expect to pay on average between £836 - £1,100 a year. Plus, with a range of trim options available, you get to choose the Micra that suits your style.

Peugeot 107 

Although the Peugeot 107 is no longer available new, having ceased production in 2014, it remains an excellent choice for new drivers, especially when purchased second-hand. The prices for used models are quite affordable, and you'll benefit from low insurance costs averaging around £855 a year, even if you’re a new driver.

The 107 is a natural choice for new drivers due to its ease of control and superb handling. It’s a compact, nimble vehicle that makes getting into tight spaces effortless. With its excellent fuel economy, the 1.0 litre, three-cylinder engine delivers 65.6 mpg and CO2 emissions of just 99g/km, so it’s also eco-friendly too.

Seat Ibiza

The Seat Ibiza shares a lot in common with the Volkswagen Polo, which sits at the top of our list and offers great value and performance. The only reason it’s not higher on the list is due to the car being group two rather than group one. Despite this, new drivers can expect affordable insurance averaging around £1,080 a year. 

To get the cheapest car insurance for a Seat Ibiza, you’ll need to stick with the entry-level 75PS 1 0 litre MPI petrol engine. The Ibiza is one of the more practical options in the supermini category, offering plenty of room. If you choose the SE or SE Technology trim, you’ll also get a touchscreen infotainment system with full smartphone integration too. 

Volkswagen Polo

The Volkswagen Polo is one of our top picks for small cars and is also among the cheapest cars to insure, with an average insurance cost of £1,100 a year for new drivers. With entry-level engines, such as the naturally aspirated 1.0 litre petrol options offering either 65PS or 80PS, many fall into the lowest insurance group (group one). The cabin features a good amount of internal soundproofing, giving the car a more refined feel compared to its rivals. 

Toyota Aygo

The Toyota Aygo is a reliable, affordable car that is perfect for first-time drivers. It’s known for its efficient fuel economy, low maintenance costs, and, most notably, its group one insurance rating. What truly sets the Toyota Aygo apart is its refined look, elegant interior, and the inclusion of a standard rear-view camera, among other thoughtful features. These design elements, along with its compact size, make it an ideal vehicle for manoeuvring through tight urban spaces. Premiums for a new driver are usually around £1,100 per annum.

Hyundai i10

For new drivers, the Hyundai i10 is another great option. When looking into insurance group ratings, this car falls into group one. Some may find it a bit plain, but it’s cheap to insure and cheerful to drive. Plus, it comes with a comprehensive five-year warranty. To keep costs down, we recommend you opt for the 66PS 1.0 litre petrol engine, paired with the automatic gearbox. While this means it isn’t the fastest, it’s great for new drivers and offers insurance anywhere between £1,500 - £2,200 annually for new drivers. 

Citroen C1

The Citroen C1 is a fun and compact car, ideal for first-time drivers. It features low running costs and premiums that average £1,800 a year for the 1.0-litre model. With its quirky design and easy handling, the C1 is a popular choice for new drivers who want a car that’s practical yet stylish.

Vauxhall Corsa

This could have very well been the car that you learnt to drive in, as the Vauxhall Corsa is deemed as one of the best-selling cars in the UK. It offers a wide range of engines, including an all-electric version, plus a spacious boot for practical use. Equipped with modern features like Apple CarPlay and Android Auto, it’s a great choice for those who need connectivity and convenience. With relatively low insurance groups, you can find insurance for one of these for around £1,800 a year as a new driver.