In 2026, insurance for the cheapest cars in the UK, especially for new drivers, is something that’s not much different from a challenge. If you are a new driver with no history and aged between 17 and 24, you are considered a high-risk customer by the insurance companies. Consequently, your annual insurance premium ranges anywhere between £1,500 to £3,000+ or more, which is sometimes even more than the price of the car itself! However, choosing the right kind of car and making informed purchase decisions when choosing an insurer will help to significantly reduce your costs.
Here’s a brief guide for you to help you get affordable insurance plans for cheap cars as a new driver in the UK.
Cheapest Car Insurance Groups
In the UK, there are over 50 car insurance groups. Ranging from the cheapest insurance premiums in group 1 to the highest in group 50. These insurance groups for cars are designed keeping in view different insurance factors. Such as;
- Repair costs of the car, i.e. availability of cheaper parts translates to lower premiums
- If the car has high speed and power capabilities, there’s usually an increase in its insurance costs.
- Cars with advanced safety and anti-theft systems significantly reduce the insurance costs.
- Car value also directly affects the insurance costs because they are expensive to replace.
Therefore, if we classify the cheapest car insurance groups for young drivers;
- Groups 1-3 are ideal for teenagers aged 17 to 19.
- Group 4-6 remain a perfect choice for most beginners.
- Group 7 or above start becoming costly.
It’s necessary to move with careful consideration because even a difference of a single group can cost you hundreds of pounds more in premiums.
Top 10 Cheapest Cars to Insure in the UK.
We’ve compiled a list of the top 10 cheapest cars to insure in the UK for new drivers. If you are someone looking to buy a new car as a beginner with affordable insurance costs, here’s what you should consider;
- Hyundai i10 – as a reliable city car, it generally falls between the insurance groups 1-2.
- Volkswagen Up! – also an insurance group 1-2 car with strong build quality and low repairs.
- Skoda Citigo – it’s a good alternative to Volkswagen Up! with the same in the same group and profile but cheaper.
- Kia Picanto – falling between group 1-3 for insurance, it’s known for its compact design and low maintenance.
- Peugeot 108 – ideal for city driving, it has cheap servicing and a car insurance group between 1-4.
- Fiat Panda – also a group 1-4 car, it’s a car with a more practical design and pricing.
- Toyota Aygo X – As an insurance group 2–5 car, it’s slightly expensive but comes with modern design and features.
- Dacia Sandero – it’s a great consideration with insurance group 2-6 because of its popularity as one of the cheapest new cars in the UK as of 2026.
- Vauxhall Corsa (1.2) – offering a perfect blend of comfort and cost, it usually falls between insurance groups 3-7.
- Ford Fiesta (Entry-Level) – a popular choice, but comes with a higher insurance cost as it falls between group 5-10.
There are plenty of other car options available for you in the UK market to consider for cheaper insurance. Always research the market for the latest available options and make an informed purchase decision.
Why Insurance Is Expensive for New Drivers?
Insurance for new drivers is usually accessible across the globe. There are many reasons for it;
Higher risk is involved
People aged 17-24 are considered ‘high risk’ by various insurance companies. They are more likely to make claims within the first year. Plus, young drivers have a higher rate of getting in accidents, drive in a risky way and at risky times. Therefore, raising the insurance premiums for companies.
Beginner level
New drivers have a beginner level and no driving history. For this reason, there’s a higher chance that they will damage their car often. Since insurance companies heavily rely on it along with customers’ claims history and No Claims Bonus (NCB), you will end up paying more in car insurance.
Car selection mistakes
A new and young driver’s car selection will be more focused on design, sportiness and modernity instead of practicality. Therefore, they end up choosing expensive cars with costly repairs, expensive maintenance, and larger engine capacities. All of it adds to the insurance costs.
How to Choose a Cheap-to-Insure Car?
For greater cost savings on your insurance payments, here’s how you can choose the perfect car in the UK as a new driver.
- Stick to vehicles that fall in the insurance groups 1-5 or up to 7 at maximum.
- Consider small engine size, i.e. between 1.0L and 1.2L.
- Look for cars that have higher Euro NCAP ratings, security and anti-theft features.
- Make your purchase decision around a car that is easy to maintain, has affordable parts availability and simple mechanics.
- Avoid luxury car brands, imported vehicles or old-model high-performance cars.
These are some of the ways you can use to choose a cheap-to-insure car.
Tips to Reduce Car Insurance Costs
Here are some of the proven tips and tricks to help you reduce car insurance costs.
- You can opt for black box insurance. It generally tracks your driving habits and rewards safe driving with up to 40% reduction in insurance premiums.
- Add an experienced driver’s name, i.e. a parent/guardian, but avoid fronting.
- Increase your Voluntary Excess. It significantly reduces insurance premiums because of the financial risk you are taking on yourself.
- Prefer annual payments over monthly payments to avoid interest.
- Improve your parking security, i.e. park in designated and safe areas.
- Avoid unnecessary modifications.
- Compare insurance costs from different providers.
Best Insurance Providers for New Drivers UK
There are hundreds of insurance providers in the UK that you can consider as a new driver. However, choosing the right one will help you save costs, make faster claims and ensure after-sales support. Here’s a list of the best insurance providers in the UK that you can look for;
- Marmalade.
- Admiral.
- Direct Line.
- LV=.
- Aviva.
- Hastings Direct.
All of these specialise in car insurance for young drivers with affordable pricing, friendly policies and a wide range of coverage options.
Frequently Asked Questions
What is the cheapest car to insure in the UK?
The cheapest cars to insure in the UK are the ones falling between insurance groups 1 and 2. Some popular choices in this regard include the Hyundai i10, Kia Picanto, and Volkswagen Up!
Which insurance group is best for beginners?
For beginners, insurance Groups 1–5 are best. However, for great cost savings, the ideal option would be group 1-3.
Can I reduce insurance at 17?
You can reduce insurance at 17, but choosing a low insurance group car, telematics, avoiding modifications, paying upfront and adding an experienced driver’s name.