The cheapest new cars to insure 2025

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4 mins read

10 June 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, because it appears there’s good news on the horizon. Prices have gradually dropped over the past twelve months, and the average quote is now around £834.

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, all using the same criteria. To see how we calculated these figures, navigate down to the 'How we selected and tested' section.

According to our research, the Skoda Fabia is the cheapest new car to insure in the UK today. 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. Skoda Fabia

9

Design9
Interior8
Performance8
Ride & Handling9
Costs8

Pros

Rides better than some luxury cars do

Well-conceived, roomy and user-friendly interior

Cons

Uninvolving to drive

Hard, scratchy interior plastics

Annual insurance premium: £237.94
List price: £19,410

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, if 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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Toyota bZ4X

7

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Audi Q6 E-tron

7

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Audi A5

7

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2. Seat Ibiza

9

Design8
Interior8
Performance8
Ride & Handling9
Costs8

Pros

Sharp styling

Up-to-date technology

Fun handling

Cons

Not quite as fun as the Ford Fiesta was

Expensive compared with others on this list

Fabia is slightly cheaper to insure

Annual insurance premium £240.84
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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3. Dacia Sandero

8

Design8
Interior7
Performance7
Ride & Handling7
Costs9

Pros

One of the cheapest cars on sale

All the kit you'd need

Comfortable

Cons

Poor safety rating

Lacking refinement in some areas

Can be noisy

Annual insurance premium £240.36
List price £13,250

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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4. Volkswagen Polo

9

Design8
Interior8
Performance8
Ride & Handling8
Costs8

Pros

Spacious, well-equipped, solid-feeling interior

Lots of ‘big car’ equipment features

Balance of comfort and handling agility

Cons

Rivals are better value

‘Progressive’ VW design lacks charisma

A little short on dynamic verve

Annual insurance premium £247.44
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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5. Volkswagen T-Cross

8

Design6
Interior7
Performance8
Ride & Handling7
Costs7

Pros

Roomy, robust-feeling, well-equipped cabin

Good refinement and drivability

Deep, flexible boot

Cons

Doesn't cut much of a dash next to more stylish rivals

Pricier than some

Volkswagen's smaller Polo is better to drive

Annual insurance premium £248.24
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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6. Hyundai i10

8

Design8
Interior7
Performance7
Ride & Handling8
Costs8

Pros

Neat, more assertive new look

Impressive cabin space and equipment

Four-cylinder performance is strong for the class

Cons

Handling feels more secure and grown-up but not as much fun

Ride refinement suffers a little for the firmer springing, too

Not the outright bargain it once was, although it’s still good value

Annual insurance premium £259.91
List price £16,380

The cheapest car to insure in the UK, according to our research, is the Hyundai i10.

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.

Read our Hyundai i10 review

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7. Kia Picanto

7

Design7
Interior7
Performance6
Ride & Handling7
Costs8

Pros

Fun to drive in the best tradition of cheap, light, small cars

Interior is reasonably well appointed, and feels grown-up

Cons

One particular rival is both bigger and cheaper

Compromised driving position can get tiring

Annual insurance premium £250.35
List price £18,945

The Picanto's recent facelift addresses its key weaknesses: interior quality and technology. It's 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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8. Kia Stonic

7

Design7
Interior7
Performance7
Ride & Handling7
Costs7

Pros

Three-cylinder mild-hybrid petrol delivers plenty of punch

Standard kit is great

Exterior design has appeal in this crowded market

Cons

Low-speed ride is firm

Rear passenger space isn't tailored to adults

Interior is behind rivals in terms of quality and refinement

Annual insurance premium £260.56
List price £20,265

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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9. Hyundai i20

8

Design7
Interior8
Performance6
Ride & Handling6
Costs7

Pros

Roomy cabin and boot

Plenty of equipment, as well as space

Multimedia is easy to use

Cons

Laggy engine

Long gearing

Ride is just about acceptable

Annual insurance premium £282.61
List price £20,880

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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10. Toyota Aygo X

6

Design8
Interior7
Performance5
Ride & Handling8
Costs8

Pros

Mature road manners and long-distance comfort

Good safety tech as standard

Cons

Very slow

Expensive list price compared with rivals

Annual insurance premium £307.13
List price £16,515

When selected with its entry-level Advance trim and 1.0-litre petrol engine, the Toyota Aygo X 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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HOW WE CHOSE THE CHEAPEST CAR TO INSURE

If you're looking at this list, you're likely after a car with low insurance costs. These are generally smaller models such as hatchbacks and superminis. Our pick is the Skoda Fabia. Associated VW Group models, the Volkswagen Polo and Seat Ibiza, are similarly inexpensive to insure.

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.

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 he has a full 18 years of no-claims bonus.

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.