15 cheapest cars to insure in 2023
August 16, 2022 by carwow staff
Insurance is one of the biggest annual motoring costs for most people, so it makes sense to reduce that cost by going for a small car that’s cheap cover. But what are the best cars on sale that come with cheap insurance? Read on to find out.
All cars are placed in an insurance group between one and 50, with one being the cheapest and 50 being the most expensive. While your own age, occupation, driving history, health, location and employment status affect how much you pay for insurance, the car you choose also has a huge bearing on this too.
Things that can affect a car’s insurance group include how powerful it is, how much it’s worth, how expensive repairs are known to be for that car, plus its value and what safety equipment it is fitted with. All the cars featured are available in low insurance groups, though this assumes you will be picking a model with a modest engine and trim level.
We should also highlight that small changes to a car’s specification can impact its insurance group significantly, while all new cars have a host of mandatory safety equipment (such as autonomous emergency braking) with sensors that will need recalibrating or replacing following a collisions, pushing repair costs up, with insurance groups increasing as a result.
We’ve selected cars that are currently on sale for our rundown, though in some cases the specific engines that bring low insurance groups may not be available from new as car makers rationalise their line-ups in the context of the global semiconductor shortage.
Given the above, the best thing to do is to check how much a specific car you’re thinking of buying (with a registration plate, if possible) costs to insure with a provider or price-comparison site before you hand over your money. You may also find cheap insurance is easier to come by if you’re looking at older models, rather than brand-new cars. One other thing to bear in mind is that the semiconductor computer-chip shortage means car makers are often building vehicles in bulk with popular equipment fitted, rather than offering the entry-level models they once did; this means some cars that were cheap to insure
Below is our top pick of cars which are cheap to insure:
- Volkswagen Polo
- Hyundai i10
- Volkswagen Up
- Kia Picanto
- Dacia Sandero
- Ford Fiesta
- Seat Ibiza
- Renault Clio
- Skoda Fabia
- Kia Rio
- Toyota Aygo X
- Nissan Micra
- Fiat 500
- MG3
- Fiat Panda
1. Volkswagen Polo
Insurance group: 3
The Volkswagen Polo is comfortable and classy, and has an interior filled with soft, well-chosen materials that give it a big-car feel. Every VW Polo comes with a slick touchscreen entertainment system, too.
The only fly in the ointment is that the only engines that qualify for low insurance are the lower-powered 1.0-litre ones, which are a touch lethargic. It’ll be fine if all your driving is done around town, however if you plan to venture out onto the motorway then we’d suggest swallowing the extra cost and going for a higher-powered model.
2. Hyundai i10
Insurance group: 3
The Hyundai i10 is a funky-looking hatchback that’s filled with standard equipment, including air-conditioning and electric windows, even on the entry-level SE model, which sits in group 3. You don’t have to go too far up the range to get a touchscreen infotainment system either. It’s roomy enough (just) for four adults, and the boot is big enough for a weekly supermarket trip.
Small dimensions and light controls make the i10 right at home nipping around town, and parking is a cinch. You’ll need to work the 67hp engine hard to keep up with traffic, however, and these are the models which fall into the lowest insurance group.
3. Volkswagen Up
Insurance group: 2
The Volkswagen Up is like a sports star who has been around for ages yet is still at the top of their game. The interior has a simple appearance but is actually full of standard kit, such as DAB radio, bluetooth and air-conditioning.
Great packaging means there’s more space inside than you might image, and of course, it’s a VW so the interior quality is impressive for such an affordable car. The 60hp engine that gets group 2 insurance needs to be revved hard to keep up with traffic, though.
4. Kia Picanto
Insurance group: 3
The Kia Picanto is a great city car with funky styling options and great standard equipment, as long as you avoid the entry level version. Mid spec cars get alloy wheels, bluetooth and air conditioning. Step up a bit higher and you can also have an easy-to-use touchscreen infotainment system.
The 1.0-litre engine is fine in town but it can feel strained at motorway speeds and the noise in the cabin can be intrusive. You can get it with a 100hp turbocharged unit but these will cost more to insure. All models come with a reassuring seven-year warranty, while the mid-level 2 trim actually sits in a slightly lower insurance group than the basic 1 model.
5. Dacia Sandero
Insurance group: 4
The Dacia Sandero is the cheapest new car you can buy right now, and it’s proof that cheap certainly doesn’t mean nasty. You get plenty of standard equipment, including bluetooth and air conditioning. A touchscreen infotainment system can also be specified.
Dacia dropped the entry-level Sandero Access recently, but you can still get an affordable Essential model, which brings group 4 insurance.
6. Ford Fiesta
Insurance group: 7
There’s a good reason that the Ford Fiesta has always been amongst the best-selling cars in the UK, it’s a great all-rounder. It combines the sort of high-tech features you usually find on cars from classes above with genuine small-car nippiness and economy. It’s just a shame that it isn’t quite as roomy as some rivals.
The 1.0-litre three-cylinder engine is a peach, and contributes to the Fiesta being a truly fun car to drive and it’s economical too. You’ll have to pay extra to insure it however, as only the more old-fashioned 1.1-litre petrol engine (only available on the basic Trend model) falls into the lower groups.
7. Seat Ibiza
Insurance group: 3
The SEAT Ibiza feels like a pretty decent-size car considering some models fall into group 3. It’s spacious enough for four adults and there’s a practical 355-litre boot behind. However, the stylish exterior is not replicated inside, where it’s all a bit dowdy.
All models get a colour touchscreen infotainment system as standard, along with alloy wheels and a leather steering wheel. The 1.0-litre MPi engine develops just 80hp, though, and as with the Fiesta the nicer, more modern turbocharged 100hp 1.0-litre engine (known as TSI) is costlier to insure.
8. Renault Clio
Insurance group: 3
Sit inside the Renault Clio and you’ll find it hard to believe that it can be classified in group 3 for insurance. The dashboard is smart and minimalist, and the materials all feel classy and well screwed together.
There’s easily enough space for you and a front-seat passenger to be comfy, but anyone tall who you consign to the rear will be less happy with the space on offer.
You’ll need to look out for a Clio with the 73hp SCe 1.0-litre engine for cheap insurance, and Renault no longer offers this from new, so do be sure to do your research before you buy.
9. Skoda Fabia
Insurance group: 4
The Skoda Fabia offers great value for money and is a good alternative to the Volkswagen Polo. It has comparable equipment and engines as the Polo, for a lower price. The interior is a nice place to sit, albeit not quite as well built as the Polo, and it’s comfortable to travel in.
The entry-level 80hp 1.0-litre MPI engine that slots into group 4 feels a little lethargic, so if you plan on using the Fabia on motorways you’ll be better off with the more modern and powerful TSI engine, which bring higher insurance groups. All models are economical though, so no matter which one you choose it’ll be easy on the wallet.
10. Kia Rio
Insurance group: 4
The Kia Rio is affordable to buy but doesn’t feel like a cheap product inside. Equipment is generous across the range, with all cars getting bluetooth and air conditioning. Mid-spec cars and above come with a touchscreen infotainment system as standard, too.
As with the other cars in this rundown, you’ll need to look out for the basic engine to get cheap insurance, which in this case is a 84hp 1.2-litre unit.
11. Toyota Aygo X
Insurance group 6
The standard Toyota Aygo city car may no longer be in production, but the SUV-esque Aygo X that was launched in 2022 takes its place, and brings with it affordable insurance thanks to a group 6 rating if you go for a Pure or Edge version, with the higher-specification Exclusive trim still coming in in group 7.
With light steering and a raised ride height, the Aygo X is a great town companion, while the rugged looks add a dash of visual flair over more conventional city cars.
12. Nissan Micra
Either way, the Micra is stylish, comfortable and easy to drive, while also being good on fuel and cheap to service.
13. Fiat 500
Insurance group 8
True, the Fiat 500 may be in insurance group 8, which is relatively high in this company, but it should also make for relatively affordable cover – though make sure you select the right trim level from the bewildering selection Fiat offers and has offered over the years, as the group ranking may rise otherwise (group 8 is for the Pop model with the 70hp 1.0-litre engine).
Whichever model you choose, though, you’ll be getting a design icon as much as a car, with the 500’s retro-modern looks still feeling fresh despite having been around for a fair few years, while the 500’s driving experience is as fun as its character.
14. MG3
Insurance group 7
It may not be as stylish as the Fiat 500, but the MG3 offers more space inside, while it’s also remarkably affordable to buy and run, and also offers pretty engaging handling.
Opt for the Explore or Excite models (there’s only one engine – a 1.5-litre petrol unit) and you’ll get low group 7 insurance as well.
15. Fiat Panda
Insurance group 6
The Panda may not have the same style as the Fiat 500, but it’s still a characterful car, and one that offers more practicality than its design-conscious cousin.
Opt for the Life model with the 70hp 1.0-litre petrol engine and it’ll be cheap to insure, with this model offering group 7 insurance, together with the low running costs small Fiats tend to bring.
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