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Car insurance groups – how to find the cheapest cars to insure

Your car plays a big part in getting cheap car insurance. Read on to understand more about the different car insurance groups and the cheapest cars to buy and insure in 2020.

Car insurance groups – how to find the cheapest cars to insure

There are a number of ways to bring down the cost of your car insurance and choosing a car in the right car insurance group is high up on the list. 

This guide will help you understand the factors that are considered when grouping cars, as well as how to check your car's insurance group and our top 10 cheap cars to insure.

What insurance group is my car?

While common sense tells us it costs less to insure a Fiesta than a Ferrari, car insurance groups can be a difficult thing to wrap your head around.

Once you've found your car's insurance group, find out exactly how much your cover could cost by comparing insurance quotes below:

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What is the cheapest insurance group?

Every car on the market belongs to one of 50 car insurance groups set by the Group Rating Panel (members of the Association of British Insurers and the Lloyd’s Market Association). Insurers can also use their own grouping system if they want.

Typically, the lower a car’s insurance group number, the cheaper it will be to insure. This means cars in insurance group 1 are likely to be the cheapest cars to insure, while those in group 50 will be the most expensive. 

How are insurance groups decided? 

When the panel decides on how to assign cars to the different car insurance groups they consider the following:

Repair costs: The cost of vehicle repairs accounts for a huge chunk of the money paid out in car insurance claims. Logically then, the cost to repair the vehicle is considered before being assigned to a car insurance group.

The time it would take to repair the car is also considered as this would lead to higher repair costs.

Cost of the parts: The cost of 23 of the most common car parts is also considered. The lower the cost of the parts, the lower the car insurance group will be. To get the best car insurance quotes the cost of the parts will need to be relatively low.

The value of the car: The value of the car as new is used as an indication of how much the car will cost the insurer to repair or replace.

Performance of the car: The statistics clearly show that drivers of high-performance cars that can reach great speeds are the most likely to make insurance claims. Consider the acceleration and top speeds of a car if cheap car insurance is a priority. Read our guide on insuring high performance cars to learn more.

Car security: The cheapest cars to insure will often be ones that have built-in security features by the manufacturer such as alarms, high-security locks, or immobilisers which prevent the car from being hotwired.

The security rating of a car is denoted by letters ranging from E, A, P, D down to U. The E category stands for ‘exceeds’ and the U is for ‘unacceptable’. Cars in the lower and cheaper car insurance groups will likely have an E or A security rating.

Are older cars cheaper to insure?

You might assume an older car would be cheaper to insure, but that’s not always the case. How much you pay for car insurance is based on a number of different factors, so there’s no obvious answer.

Car insurance premiums can be more expensive for an older car because they tend not to have the security features of a newer, more modern car. On the other hand, older cars are often less valuable, and they may be cheaper to repair, which can help to push premiums down.

What is the cheapest car to insure?

Scroll down to see ten of the cheapest cars to insure that you can buy in 2020, with models in the lowest car insurance groups.

1. Volkswagen Polo

The Volkswagen Polo has been a favourite small car since it was first introduced in 1975 and its popularity looks set to continue in 2020. With a modern interior and decent boot space, it is one of the cheapest cars to insure with some versions in car insurance group 1. 

2. Volkswagen Up

Another VW, the latest version of the Up is a spacious and reliable four-seater and is great for zipping around cities and towns. Some models fall into car insurance group 1, making it a cheap car to insure. 

3. Hyundai i10

The second generation i10 is in car insurance group 1, meaning it is far cheaper to insure than previous models. The five-seater Hyundai i10 comes with a 1.0 litre engine and is packed with entertainment features, making it an ideal first car for young drivers.

4. SEAT Ibiza

The SEAT Ibiza has been described as “one of the best small cars on the market” by What Car? and offers a good-sized boot and plenty of safety features. It should also be cheap to insure, with the 1.0-litre S and SE versions in insurance group 2. 

5. Nissan Micra

Cheap to buy, the Nissan Micra has been around since the 1980s. The latest version has shaken off the clunky image of its previous iterations to become a desirable supermini, with models starting in insurance group 1.

6. Ford Ka+

The Ford Ka+, introduced in 2016, is an update on the original model that became hugely popular in the late 1990s. The Ka+ range includes models in insurance groups 1 and 2, making it a solid choice for those looking for a cheap car to insure.

7. Toyota Yaris

A reliable and economic car, the Toyota Yaris was introduced in 1999. Offering a spacious interior and great value for money, it’s also cheap to insure, with models starting in group 2. 

8. Smart Forfour

Arguably less recognisable than its two-seater cousin, the Smart Forfour is a more practical choice that should be cheap to insure. The Pure version is insurance group 1 while there is a huge range of other options starting in group 2. 

9. Skoda Citigo

The Skoda Citigo is in car insurance group 1 as a result of its low price and solid engineering. The Skoda Citigo is a compact but spacious 3-door city car, designed to be easy to drive and park on busy city streets. 

10. Kia Rio

The Kia Rio is a cheap car to insure for small families, with models starting in group 1. The Rio has received praise for its ample boot space and low CO2 emissions.

What are the cheapest cars to insure for young drivers?

Car insurance for 17-year-olds and other young drivers can be expensive, but you can keep costs down by selecting a car in a low insurance group, such as those in groups 1 and 2. Cheaper options to consider include the Volkswagen Polo and Hyundai i10.

What are the cheapest cars to insure for new drivers over 25?

If you’re a new driver over the age of 25, you’ll still be charged higher car insurance premiums on average as new drivers of any age are statistically more likely to be involved in an accident. 

To help find a cheap car insurance quote, it is again worth choosing a car in a low insurance group. 

Compare car insurance

Whatever car you drive, one of the best ways to save on your car insurance is to shop around for quotes.

See how much you could save on your cover by comparing car insurance quotes here.

Get a car insurance quote

See a range of car insurance quotes in just a few minutes when you compare with Uswitch