Securing cheap car insurance can feel like an uphill battle unless you’re nearing retirement, boast a perfect driving record, and choose a modest, low-powered vehicle.
For those of us in the “real world” — juggling daily responsibilities and managing tight budgets — renewing car insurance often feels like considering drastic measures to cover the cost.
In the quirky world of car insurance, vehicles are assigned to groups numbered 1 through 50. Group 1 represents the most affordable options, while Group 50 is reserved for luxurious, high-performance cars that seem crafted from dreams and starlight.
Without further ado (or dwelling on unfulfilled holiday wish lists), here’s a guide to the most budget-friendly new cars to help you tackle rising insurance costs.
For those who prioritize speed, we’ve included some faster yet still relatively insurable options. Dream responsibly!
1. Volkswagen Polo 1.0 S (Group 1)
The VW Polo, updated in recent years, carries design elements reminiscent of its bigger sibling, the Volkswagen Golf.
Compact dimensions and spirited 1.0-liter turbocharged petrol engines make it a lively choice. Its practical yet comfortable interior seals the deal.
Opting for a lower trim spares you the less-than-ideal touch-button climate control panel, a notorious design flaw.
While it lacks the charm of the Ford Fiesta, the Polo compensates with excellent fuel economy and a Group 1 insurance rating, making it a sensible choice for budget-conscious drivers.
2. Kia Picanto 1.0 ‘1’ (Group 1)
Revitalized in 2011, the Kia Picanto is a chic city car backed by a seven-year warranty.
Its 1.0-liter engine in the entry-level ‘1’ trim offers affordability without sacrificing standard features like electric front windows, USB connectivity, a DAB radio, and Bluetooth.
While features like Apple CarPlay and Android Auto are only available in higher trims, the Picanto’s practicality and compact design make it a solid choice for solo commutes or occasional group outings.
3. Volkswagen ‘Take’ Up 1.0 60PS (Group 1)
The Volkswagen Up surprises with its motorway refinement and spacious interior. Its intuitive tech and high-quality build add to its appeal.
For Group 1 insurance, the entry-level “Take Up” model is the one to choose. Its modest 60bhp 1.0-liter engine may not win races, but its distinctive engine note adds character.
Avoid the less-smooth automatic gearbox, and enjoy low running costs.
4. Hyundai i10 1.0 MPi AMT (Group 1)
Though the older Hyundai i10 wasn’t particularly memorable, its newer version is far more compelling.
The 1.0-liter engine won’t thrill speed enthusiasts, but the car offers a smooth ride, decent equipment levels for an entry-level model, and Hyundai’s reassuring five-year warranty.
5.Ford Fiesta Trend 1.1-Liter Ti-VCT (Group 5)
Renowned for its stylish design, road presence, and strong performance, the Ford Fiesta remains a popular supermini — though its days may be numbered.
While the 1.1-liter three-cylinder EcoBoost engine isn’t as dynamic as the hot hatch ST, it offers affordable insurance in Group 5.
Ford’s reputation for low repair costs, coupled with standard features like an eight-inch touchscreen and smartphone integration, makes this model a winner.
6. Nissan Micra 1.0 Visia (Group 1)
Once infamous for its lackluster design, the Nissan Micra has undergone significant improvements. For Group 1 insurance, the 69bhp non-turbo 1.0-liter engine is the best option.
Its sporty exterior and decent handling offset drawbacks like cramped rear seating and no air conditioning. With CO2 emissions as low as 103g/km, it’s an eco-friendly option for budget-conscious drivers.
7. Skoda Fabia Hatchback (Group 2)
The smallest model in Skoda’s lineup, the Fabia, upholds the brand’s reputation for quality and affordability.
The entry-level ‘S’ trim features a punchy 1.0-liter turbocharged engine and practical touches like an umbrella in the door and an ice-scraper on the fuel cap.
8. VW Up GTI (Group 17)
For those who need speed, the VW Up GTI combines affordability and performance.
Its 1.0-liter TSI engine delivers 113bhp, reaching 0-62mph in 8.8 seconds. Though in Group 17, it remains a standout choice for cost-conscious enthusiasts.
9. Hyundai i30 Fastback (Group 18)
Stylish and practical, the Hyundai i30 Fastback’s 1.5-liter turbocharged engine achieves 0-62mph in 8.6 seconds.
While its automatic transmission is less impressive, the package offers good value and efficiency, with potential fuel economy of 53mpg.
10. Mini Clubman Cooper S JCW (Group 22)
Today’s Mini Clubman blends classic style with modern performance. Its 2.0-liter turbocharged engine delivers 302bhp, reaching 0-62mph in just 4.9 seconds.
While Group 22 insurance is a step up, this model remains competitive for its class.