10 Cheapest Cars to Insure for New Drivers in the UK (2025)
Finding the cheapest car insurance, especially for young drivers, those under 25, is a big concern. Premiums are often higher for new drivers because of greater risks. So what can you do then?
The good news is that it all depends on what car you choose. Compact and lower-powered cars that fall into a lower insurance group can bring costs down. In this guide, we have listed down the cheapest cars for new drivers to insure in the UK.
Let’s get started!
Why is Car Insurance So Expensive for Young Drivers?
There are different reasons, but one of the main reasons is that there is a higher risk of accidents and a greater chance of claims. In fact, according to statistics, drivers under 25 are more likely to be involved in collisions.
Other elements also affect premiums. Your postcode, the type of car you drive, annual mileage, and even how you pay for your policy can all increase costs. Until you gain more years of safe driving, insurers are likely to charge more to cover that higher risk.
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What are the Cheapest Cars to Insure for New Drivers?
| Model | Insurance Group (Base Variant) |
| Hyundai i10 | Group 1 (1.0 auto) |
| Volkswagen up | Group 2 (1.0 Take Up) |
| Skoda Fabia | Group 4 (1.0 MPI SE) |
| Kia Picanto | Group 4 (1.0 Picanto 1) |
| SEAT Ibiza | Group 2 (1.0 MPI SE) |
| Toyota Aygo X | Group 5 (1.0 Pure) |
| Ford Fiesta | Group 2 (1.1 Trend) |
| Fiat 500 | Group 10 (standard) |
| Volkswagen Polo | Group 3 (1.0 S) |
| Renault Clio | Group 10 (0.9 TCe Evolution) |
1. Hyundai i10
The excellent Hyundai i10 is one of the best options for new drivers. It’s a compact small-engine car and lies in the lowest insurance group. However, it is also quite good fun to drive with advanced features.
Being a small car, it’s cheap to run with decent fuel economy. With a 1L and 3-cylinder engine, the Hyundai i10 delivers 63 hp of power. And it comes in five-speed automated manual transmission.
2. Volkswagen up
Volkswagen Up is another excellent option when it comes to cheap car insurance for new drivers. Most of its trims and models fall into 1,2, or 3 insurance groups. There are some newer models in insurance group 17, but you need to avoid them as a new driver.
With a 1.0-litre three-cylinder, it delivers a good power, competing with its rivals, the Hyundai i10 and Ford Fiesta. Overall, it is an ideal combination for new drivers with low insurance cost.
3. Skoda Fabia
If you can stretch your budget to the Hyundai i10 or a VW Up, then the Skoda Fabia is the next option that you should consider. It is a spacious and well-designed car, providing comfort for both passengers and drivers.
However, it’s the cheapest car to insure, but it could be a little pricier because it’s categorised in group 4. Overall, the Skoda Fabia combines practicality with low running costs. It is ideal for new drivers looking to minimise expenses.
4. Kia Picanto
Kia Picanto is one of the cheapest cars to insure in the UK. Most models sit in the lowest insurance groups, which is a big win if you’re under 25. And it is considered a sportier cousin of the Hyundai i10 which really appeals to young drivers.
Also, it comes in both in manual and automatic transmission with advanced technology features. It is the best option with a reasonable price tag and a seven-year warranty. However, the only drawback is that Euro NCAP has rated it three stars in safety.
5. SEAT Ibiza
SEAT Ibiza is a stylish supermini that starts at Insurance Group 2. It is a sporty, cheap car and comes in vibrant colour options, which really appeal to younger drivers.
It is to be noticed that the SEAT Ibiza is a 1.0-litre turbocharged petrol engine that offers excellent performance while achieving around 55 mpg. This balance ensures you enjoy spirited drives without breaking the bank on fuel or insurance.
SEAT also prioritises safety. Many of its models come equipped with advanced safety features like autonomous emergency braking and lane-keeping assist.
6. Toyota Aygo X
Toyota Aygo X stands out as one of the most affordable cars to insure in the UK. The Toyota brand itself is known for being the most reliable make, with more than 90% of ratings. With its insurance group 5, the Aygo X is the best and yet the cheapest car to insure.
It’s a small compact car with a good fuel economy and low maintenance cost. And it also provides a 10-year warranty, which makes it a more reliable option.
7. Ford Fiesta
The Ford Fiesta has been the UK’s best-selling car for many years. Although new model is no longer available, you can get used one. Depending on the trim level, its models typically fall into groups 2 to 16.
You can select from various engines. However, the 1.0-litre EcoBoost model stands out with good performance and an average mpg of around 60. With these specs, the Fiesta is the ideal option within the budget, and saves more money on insurance.
Fiesta features Ford’s SYNC infotainment system, which keeps you connected. Safety ratings are high, too, and many models come equipped with advanced driver assistance systems.
8. Fiat 500
The iconic Fiat 500 is a compact city car that pairs style with practicality. Its a small-sized, retro-design car with modern features, which makes it perfect for tight urban streets.
Today, it’s still a style statement, but that age does mean it feels dated to sit in and drive. Moreover, it’s only available with a 1.0-litre three-cylinder engine mated to a mild hybrid system. So it isn’t especially fast, though it is very economical. And its expired Euro NCAP safety rating contributes to it having a higher insurance group than its city car rivals.
9. Volkswagen Polo
The Volkswagen Polo can also be a great choice for new drivers. The cheapest Polo will generally fall in the first insurance group! You’ll love how well-built this supermini feels. Its solid construction contributes positively to overall safety ratings, which help keep premiums low!
Engine options include efficient petrol variants offering impressive fuel economy figures. Volkswagen Polo averages around 50-60 mpg, depending on how hard you push the gas! Volkswagen is reliable yet fun to drive. Plus, it won’t break the bank while insuring!
10. Renault Clio
The Renault Clio has been a familiar sight on UK roads for decades. It’s a small hatchback, but with a bit more style and space than some of the tiny city cars on this list.
Insurance costs stay reasonable thanks to modest engine options and a strong safety record. Older models often sit in lower groups, which helps keep premiums within reach for young drivers.
Running costs are fair too, with good fuel economy and plenty of used examples around. If you want a first car that feels a little more grown-up without breaking the bank, the Clio is worth a look.
Final Thoughts
In conclusion, choosing the right car is essential for you as a new driver. Selecting one of the cheapest cars to insure for new drivers leads to long-term savings for you.
However, it is also important to remember other things in addition to car selection. For instance, choosing the correct insurance type is equally critical to keeping insurance costs low.
Read our blog to find advice on more ways to secure cheap car insurance for new drivers.
Cut the Cost of Car Insurance
Driving a car in a low insurance group can save you hundreds each year. If your current car is expensive to insure, now’s the time to switch. Sell your old car quickly and get the best deal with Exchange My Car.