Cheapest New Cars to Insure 2026

Financing a new car is one thing but running costs – especially insurance – can also play a major part in determining which model you should choose, especially if you’re a first-time buyer.

Every car in the UK is categorised into an insurance group that has been determined independently by the Association of British Insurers with a rating from 1 (the lowest), all the way to 50 (the highest).

The cost of insurance takes in myriad factors, including the car itself and the person taking out the policy. Young people and first-time buyers will typically pay more insurance, so sourcing a car that can help negate those premiums by being cheaper to insure can result in major savings.

It should be noted that a single insurance group applies to a particular make and model – different trim levels and engines can affect the group it features.

Nevertheless, Vertu has done the legwork for you to ensure you can insure with confidence and get those pesky premiums down…

* Insurance groups correct as of January 2026

Hyundai i10

Model: Hyundai i10 1.0 MPi (67) Auto Advance

Insurance Group: 1

Not only is the Hyundai i10 one of just two models on the UK market* that features a trim level classified in the lowest band of car insurance, it’s also one of the cheapest cars you can buy too.

And that’s an encouraging thing because while the i10 is an absolute bargain, you’d regard this accomplished small car as anything but basic.

Ideal for those seeking a nippy runabout that can dart between traffic and return low running costs, most i10 trim levels return over 50mpg and low emissions figures.

It also looks sophisticated with an external look that contains many of Hyundai’s signature design cues that can be found on more expensive models.

Better yet, its lofty roofline ensures there is decent space for passengers in the back, while even the Advance trim level gets cruise control, an 8-inch touchscreen, Apple CarPlay and Android Auto.

Volkswagen Polo

Model: Volkswagen Polo 1.0 (80) Life

Insurance Group: 1

Arguably the small car many aspire to owning – especially first-time buyers – it is therefore encouraging that the Volkswagen Polo is particularly cheap to insure.

To clarify, this applies only to the entry-level model in the Polo range – the 1.0-litre (80bhp) Life trim - but even so you’re still getting one of the most mature and solidly-built models in the compact hatchback class.

Indeed, the appeal of the Polo lies in the fact it gets the basics spot on – it’s a handsome looker, the interior features good quality materials, it can seat five people comfortably and there is a decently-sized 351-litre boot.

It’s also comfortable to drive, while it comes with the kudos of that ‘VW’ badge on the bonnet – a feeling only accentuated by the knowledge that you’ve paid the absolute minimum to insure it too.

Skoda Fabia

Model: Skoda Fabia 1.0 MPI (80) SE Edition

Insurance Group: 4

If the Volkswagen Polo is one of the UK’s cheapest cars to insure, it should stand to reason that its sister model – the Skoda Fabia – should also join it on this ranking.

And so it proves, the Skoda Fabia 1.0-litre MPI (80) SE Edition – the model’s equivalent to the Polo 1.0 Life – coming in nice and low with a Group 4 for insurance.

By sharing the same underpinnings, the Fabia gets all the benefits of the Polo on the road, which is no bad thing, so expect mature driving manners and a level of refinement not experienced by other models in the compact hatchback class.

However, there are some clear differences that make the Fabia stand out against its sibling, namely its arguably more interesting exterior styling, while the well-built interior is attractive too.

The Fabia has also been reprofiled to offer more interior space than the Polo, while the boot is largest in its class at 380-litres.

Kia Picanto

Model: Kia Picanto 1.0 Dpi (62) 2

Insurance Group: 4

While the Kia Picanto isn’t quite the cheapest car to insure in the UK outright, overall its range arguably represents the best value for insurance with no trim level exceeding insurance Group 8.

Based on the same running gear as the Hyundai i10, the Picanto therefore gets the same mature and refined feeling out on the open road that belies its otherwise pint-size dimensions.

Many will also find favour with the Picanto’s funky looks, which incorporate Kia’s distinctive new ‘Opposite United’ design philosophy to great effect.

Beyond the sporty exterior, the Picanto gets a solid and logically laid out interior, while the light steering and responsive 1.0-litre or 1.2-litre engines make light work of city driving.

While the lowest insurance group refers to the entry-level 2 trim line, it still gets an 8-inch touchscreen, air-conditioning, electric windows and phone mirroring capability.

Moreover, even if you choose the flagship GT-Line trim – complete with a sporty exterior makeover – you’re still only looking at an insurance group of 5.

Volkswagen Caddy

Model: Volkswagen Caddy 1.5 TSI (116) SWB

Insurance Group: 8

Proof cheap insurance needn’t exclude larger cars, the Volkswagen Caddy represents remarkable value-for-money with its base insurance group of 8.

The passenger version of the VW Caddy – which is based on the van of the same name - is aimed at those who have a need for lots of interior space (both occupant and luggage) or have mobility requirements.

The penny-pinching insurance group applies to two versions of the Caddy – the 1.5-litre TSI (116) SWB and SWB California trim.

Even in SWB trim, the Caddy can be specified with seven seats, while boot space with five seats in place is a vast 1213-litres.

Better still, despite its van origins, the Golf-derived underpinnings make it an assured car to drive on the open road.

Kia Stonic

Model: Kia Stonic 1.0 T-GDi (98) 2 & GT-Line

Insurance Group: 8

Cost-effective small SUVs are all the rage, which is what makes the Kia Stonic – with its low insurance group of 8 – all that more appealing.

Indeed, the Stonic proves you can get a trendy, raised hatchback-style model with all the accoutrements of an SUV – beefier bumpers and chunkier bodywork – and not spend the earth to insure one.

In fact, the Stonic makes a great alternative to a standard compact hatchback like a Volkswagen Polo with its youth-orientated looks, well-designed interior and easy-going driving experience.

Better yet, the low insurance group is available on two trim levels of Stonic – 2 and GT-Line – while its seven-year warranty is one of the most generous out there.

NOTE: This insurance group refers to the pre-facelift model [pictured]. The updated Stonic is set to go on sale later this Spring

Volkswagen T-Cross

Model: Volkswagen T-Cross 1.0 TSI (95) Life

Insurance Group: 9

If the Volkswagen Polo is just a little bit too humdrum for you, it’s reassuring to know that you wouldn’t need to fork out much more of an insurance premium from the model’s SUV equivalent, the Volkswagen T-Cross.

The entry-level 1.0-litre TSI (95) Life trim is categorised in insurance group 9 and it presents excellent value-for-money as a more grown-up hatchback with the kudos of a VW badge.

Inside, the T-Cross gets a well-laid out, well-built dashboard that feels premium, while the raised ride height is a particular boon in urban environments.

Best of all is while the T-Cross makes an ideal first car with its modest dimensions, it ultimately feels remarkably grown up – which just makes the low insurance group even more of a winner.

Renault Clio

Model: Renault Clio 1.0 TCe (90) Evolution

Insurance Group: 10

The Renault Clio has been through myriad eras since the nameplate first graced these roads in the 1990s, but the current generation is undoubtedly the best yet.

Whatever the year, however, the Clio has been a byword for value-for-money, so the low insurance group (10) of the entry-level 1.0 TCe (90) Evolution should come as no surprise.

For one, it has never looked chicer with the well-judged styling updates that put it in line with the likes of the Captur and Scenic giving it a mature appearance.

It’s even better behind the wheel where the Clio feels spirited and sprightly whether it’s navigating the urban jungle or tackling open roads.

Coupled with generous kit levels, plus a decidedly contemporary interior and the Clio feels like the ideal first-time buyer’s car, especially with this low insurance grouping.