The cheapest new cars to insure 2025
Car insurance is up there with the worst drivers of the cost of living crisis, and finding the cheapest new cars to insure is a must-do, particularly for new drivers.
According to data from comparison site Confused.com, the average premium increased by £284 in 2024, up year on year by 43% to a whopping £941.
But don’t fret. It appears there’s good news on the horizon. Prices have gradually dropped over the past few months, and the average quote is now around £834.
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That’s not exactly cheap, of course, but there is still a good choice of affordable cars in low insurance groups that can help to bring the cost down even further.
This top 10 list features affordable cars ranked in order of the cheapest available car insurance quotes. Each quote is based on a 35-year-old male who lives in Swindon and works as a teacher.
This driver commutes by car, parking it on the street during the day and in a residential space overnight. He drives 8000 miles per year. His licence has no penalty points and a full 18 years of no-claims bonus.
According to our research, the cheapest new car to insure in the UK today is the Toyota Aygo X. Read on to see the rest of the top 10, which consists mostly of superminis and hatchbacks, with the odd SUV here or there…
1. Toyota Aygo X
Pros Mature road manners and long-distance comfortGood safety tech as standard Cons Very slowExpensive list price compared with rivals
Annual insurance premium £309.34
List price £16,515
The cheapest car to insure in the UK according to our research is the Toyota Aygo X, which, when selected with its entry-level Advance trim and 1.0-litre petrol engine, comes in at just over £300 a month.
The Toyota Aygo X is a solid city car with a playful interior, great ergonomics and a sophisticated chassis. Given its small stature, though, it is on the expensive side, and its 71bhp three-pot engine is rather wheezy.
Read our Toyota Aygo X review
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2. Hyundai i10
Pros Neat, more assertive new lookImpressive cabin space and equipmentFour-cylinder performance is strong for the class Cons Handling feels more secure and grown-up but not as much funRide refinement suffers a little for the firmer springing, tooNot the outright bargain it once was, although it’s still good value
Annual insurance premium £316.67
List price £16,380
This is one of the best new city cars you can buy, thanks to assured handling and a roomy interior with more technology than many rivals have. You will have to opt for the underwhelming 66bhp three-pot engine to keep insurance costs down, though.
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3. Skoda Fabia
Pros Rides better than some luxury cars doWell-conceived, roomy and user-friendly interior Cons Uninvolving to driveHard, scratchy interior plastics
Annual insurance premium: £335.23
List price: £21.095
The Skoda Fabia isn't just one of the best small hatchbacks on sale today – it's also one of the cheapest to insure. It comes in at less expensive than the mechanically similar Volkswagen Polo and Seat Ibiza, but only just. It's the best-riding of the three, and its refinement even puts some luxury cars to shame.
Read our Skoda Fabia review
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4. Seat Ibiza
Pros Sharp stylingUp-to-date technologyFun handling Cons Not quite as fun as the Ford Fiesta wasExpensive compared with others on this listFabia is slightly cheaper to insure
Annual insurance premium £336.80
List price £19,795
The Ibiza remains a great choice six years after it was first introduced, thanks to its well-finished interior, responsive turbocharged engine and balanced chassis.
Read our Seat Ibiza review
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5. Kia Picanto
Pros Fun to drive in the best tradition of cheap, light, small carsInterior is reasonably well appointed, and feels grown-up Cons One particular rival is both bigger and cheaperCompromised driving position can get tiring
Annual insurance premium £337.68
List price £18,945
The Picanto's recent facelift addresses its key weaknesses: interior quality and technology. We've yet to drive the new version, but the outgoing car was comfortable and surprisingly good fun on the road, with agility that's seldom found in cars so cheap.
Read our Kia Picanto review
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6. Volkswagen Polo
Pros Spacious, well-equipped, solid-feeling interiorLots of ‘big car’ equipment featuresBalance of comfort and handling agility Cons Rivals are better value‘Progressive’ VW design lacks charismaA little short on dynamic verve
Annual insurance premium £338.71
List price £21,210
If you want big-car refinement and comfort in a more affordable package, the Polo is a great choice. The 1.0-litre MPI petrol engine featured here lacks a turbo, so it can feel a little underpowered at times, but it does at least bring a big saving on insurance costs compared with the boosted TSI units.
Read our Volkswagen Polo review
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7. Hyundai i20
Pros Roomy cabin and bootPlenty of equipment, as well as spaceMultimedia is easy to use Cons Laggy engineLong gearingRide is just about acceptable
Annual insurance premium £344.25
List price £21,265
Hyundai's small hatchback comes in slightly more expensive to buy than the smaller i10 but obviously has much more practical benefit to it. It's a spacious car for its class, with a 352-litre boot and a roomy cabin. It's let down by some uninspiring engines, but can you argue with that insurance cost?
Read our Hyundai i20 review
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8. Volkswagen T-Cross
Pros Roomy, robust-feeling, well-equipped cabinGood refinement and drivabilityDeep, flexible boot Cons Doesn’t cut much of a dash next to more stylish rivalsPricier than someVolkswagen’s smaller Polo is better to drive
Annual insurance premium £345.89
List price £24,895
Volkswagen’s small crossover is one of the larger cars on this list, but it’s remarkably cheap to insure thanks to its tiny 1.0-litre petrol engine selection. It’s a stylish model too, with decent entry-level specification, although the Polo will probably handle your commute just as easily.
Read our Volkswagen T-Cross review
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9. Dacia Sandero
Pros One of the cheapest cars on saleAll the kit you’d needComfortable Cons Poor safety ratingLacking refinement in some areasCan be noisy
Annual insurance premium £348.62
List price £14,200
Starting from just £14,200, the Dacia Sandero is one of the cheapest cars on sale. It's also one of the cheapest to insure and overall represents great value, with most of the equipment you'd ever want in a car, a comfortable ride and reasonable practicality for its size.
Read our Dacia Sandero review
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10. Kia Stonic
Pros Three-cylinder mild-hybrid petrol delivers plenty of punchStandard kit is greatExterior design has appeal in this crowded market Cons Low-speed ride is firmRear passenger space isn’t tailored to adultsInterior is behind rivals in terms of quality and refinement
Annual insurance premium £349.35
List price £21,265
The second Kia on this list, the Stonic is equally good value when seeking an insurance quote. First launched in 2017, the compact SUV is starting to feel its age – but it's still a decent option for couples or small families.
Read our Kia Stonic review
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HOW WE TESTED AND SELECTED
Cars featured in this top 10 list were selected due to their low insurance costs, using quotes received through a popular comparison site. The quote costs detailed in this article are based on a description detailed in the main body of the text, and costs will be different for each driver in the real world.
FAQs
How is car insurance calculated?
Car insurance companies calculate your quotes using several criteria, including your age, your job, what car you drive and where you live. Other factors include whether you use your car for business or personal use, how secure your parking location is, and how many years of no claims bonus you have accrued.
Does my age affect insurance costs?
Your age will affect your insurance costs and is considered one of the biggest factors when calculating your quotes. If you’re a new driver with less experience on the road, your insurance will be more expensive than for older drivers. Younger drivers—those aged between 17 and 25—are also considered more likely to be involved in accidents, with more expensive claims.
What are the different types of car insurance cover?
There are three different types of car insurance cover in the UK. The most important is Third Party insurance, which is a legal requirement for all drivers. It will cover injuries to other drivers and damage to their cars. It will not cover damage to your car or injuries to you. Third Party, Fire and Theft takes all of the above but also offers protection to your vehicle in the case of a fire or if it’s stolen. Comprehensive – the most expensive type of cover – will protect both yourself and your car, plus other drivers in the case of injury.
What is ‘no claims discount’?
A no-claims discount (NCD) will bring lower costs if you avoid making any claims on your car insurance policy. The more years you drive without claiming, the greater the discount you can receive on your premiums, often up to 60-70% after several years.
Does car insurance cover me to drive abroad?
Most UK car insurance policies include a minimum level of cover for driving in the EU and other specified countries. However, you may need to upgrade your policy for comprehensive cover when driving abroad. Always check with your insurer before travelling.
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