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 the UK.
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 what factors are considered, check your car’s insurance group and outline our top 10 cheap cars to insure.
In this guide:
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. Use our car insurance group checker to find out which insurance group any car is in.
Find a car's insurance group
Cars are allocated a group from 1–50, with 1 typically being the cheapest to insure and 50 typically being the highest. The group ratings are based on a number of factors, including the car's value, repair costs and performance.
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 Lloyds Market Association). Insurers can also use their own grouping system if they want.
Typically, the lower a car’s insurance group number (1-50) the cheaper it will to be to insure – for example, group 1 insurance cars are far more likely to be the cheapest cars to insure.
What factors are considered?
When the panel decides on how to assign cars to the different car insurance groups they consider the following:
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 are 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 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.
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 hot wired.
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.
Scroll down to see ten of the cheapest cars to insure in the lowest car insurance groups.
Cheap to buy and with an impressive safety rating, the Toyota Yaris could be the cheapest car to insure depending on your driving history and other factors. Furthermore, the Yaris makes for an attractive city car thanks to its compact size. The car is also in a hybrid model, so it’s eco-friendly as well as economical.
The Kia Rio is one of the cheap cars to insure for small families, with its 5-door Air model in car insurance group 1 and several other models in groups 2 and 3. The Rio has received praise for its ample boot space and low CO2 emissions.
The third generation Twingo is a modern take on Renault’s popular city car. The new model may look like a complete upgrade, but it stays true to the Twingo’s innovative design with its fold-flat seats creating extra space.
Vauxhall Corsa Hatchback
Popular with young drivers for well over a decade, the Corsa is a sensible and reliable supermini — the latest generation has two models (Sting and Life) in insurance group 2.
The Volkswagen Up! replaced the popular Fox model as VW’s flagship city car — it’s cheap to run and offers good fuel economy. The Up! won What Car? ‘Car of the Year’ for 2012 and received an overall 5-star rating in a Euro NCAP assessment.
The new second generation i10 is in car insurance group 1, meaning it is far cheaper to insure than previous models. The new Hyundai i10 comes with a 1.0 litre engine and is packed with entertainment features, making it an ideal first car for young drivers. It was voted best city car at the 2014 Car of the Year Awards.
The SEAT Mii is a green and cost effective city car, similar in build to the VW Up!. The Ecomotive model has low emissions so is exempt from road tax and the London Congestion Charge, making it an even more economical buy.
The Dacia Sandero is a more spacious 5-door car, and its 16V Access model is in insurance group 2. The Sandero is one of the cheapest new cars available to buy, so it’s perfect for a small family looking for a new car on a budget
Part of the Volkswagen group, 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.
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.
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