DRIVERS on the hunt for a new car with low insurance costs are in luck – from the tiny Ford to the classic VW, there are plenty of affordable options to consider.
New drivers, especially under 25, are statistically more likely to be involved in accidents, with 20 per cent having an incident in their first year.
Insurance groups are used by providers to decide premiums[/caption]
High-performance cars with larger engines typically fall into higher groups, which means higher insurance costs[/caption]
Generally, cars in lower groups are smaller, less powerful, and safer, leading to cheaper premiums[/caption]
In fact, 44 per cent of drivers aged 17-24 list car insurance as their top concern.
This issue is highlighted in the latest RAC Report on Motoring, which points out that young drivers typically pay more due to the increased risk they represent on the road.
This inexperience makes them high-risk clients in the eyes of insurers.
However, choosing the right car can help lower insurance costs.
One key factor in determining insurance premiums is the car’s insurance group.
Liz Hunter, Commercial Director at MoneyExpert, explains that vehicles in lower insurance groups are generally cheaper to insure.
These groups range from 1 to 50, with group 1 being the least expensive.
Insurance groups are used by providers to decide premiums.
Generally, cars in lower groups are smaller, less powerful, and safer, leading to cheaper premiums.
High-performance cars with larger engines typically fall into higher groups, which means higher insurance costs.
While insurance groups are important, other factors—like the driver’s age, location, and the car’s make and model—also impact premiums.
So, choosing a car in a lower insurance group can help, but it doesn’t guarantee the lowest rate for everyone.
Top ten cheapest car insurance cost for young drivers:
- Ford KA 1.2 Studio (2010), Insurance Group 1A, compact city car with great value and low insurance costs, especially the 1.0-litre, 63hp model. Estimated insurance cost: £976.03
- Fiat 500, Insurance Group 10, A retro design icon that’s affordable to run, but with an older safety rating, which affects its insurance group. Estimated insurance cost: £1,036.48
- Toyota Aygo X, Insurance Group 5, A mini-SUV city car that’s fun to drive, economical, and cheap to insure, particularly in the entry-level Pure trim. Estimated insurance cost: £1,047.68
- Hyundai i10 1.1 Style (2010), nsurance Group 5, A compact city car that’s economical, reliable, and affordable to insure, especially in the Style trim. Estimated insurance cost: £1,143.36
- Renault Clio, Insurance Group 10, Stylish, comfortable, and affordable to insure, with excellent safety features. Estimated insurance cost: £1,231.35
- Seat Ibiza 1.2 S (2010), Insurance Group 4, Stylish, efficient, low-cost hatchback, ideal for new drivers. Estimated insurance cost:£1,266.24
- Volkswagen Polo, Insurance Group 3, A refined small car with excellent safety features, offering affordable insurance. Estimated insurance cost: £1,270.13
- Vauxhall Corsa 1.2 SXI (2010), Insurance Group 6: Stylish, practical hatchback with efficient performance and low insurance. Estimated insurance cost: £1,353.54
- Ford Fiesta 1.25 Style (2009), Insurance Group 6: Compact, economical hatchback with reliable performance and low insurance. Estimated insurance cost: £1,392.45
- Nissan Micra 1.2 Visia (2010),Insurance Group 3: Compact, reliable city car with low running costs and insurance. Estimated insurance cost: £1,435.70
Prices are estimates based on Money Expert, correct as of February 2025.
While insurance groups are important, other factors—like the driver’s age, location, and the car’s make and model—also impact premiums[/caption]
