Currently reading: Top 10 cheapest new cars to insure 2024
Car insurance can put a real sting in your wallet, but there are a few models out there with substantially lower premiums

Car insurance is up there with the worst drivers of the cost of living crisis. According to data from comparison site, the average premium has increased by £284 – or 43% – over the past 12 months, to a whopping £941. 

Thankfully, there is still a wide variety of cars that are substantially less costly, as our guide to the cheapest new cars to insure shows.

Each quote is based on a 35-year-old male who lives in Swindon and works as a teacher. He commutes by car, parking it on the street during the day and in residential space overnight, and he drives 8000 miles per year. He has no penalty points on his licence and a full 18 years of no-claims bonus.

Although premiums on the whole have risen significantly over the past year, there is good news on the horizon. The cost of insuring each car in our data set has fallen since we last adjusted our rankings in November 2023, and there are some big savings to be made: if you own a new Fiat Panda, Toyota Aygo X, Hyundai i10 or Volkswagen Polo, insurance is now more than £100 cheaper than it would have been eight months ago.

Top 10 cheapest new cars to insure in the UK

1. Fiat Panda 1.0 Mild Hybrid

Annual insurance premium £337.66 Saving vs November 2023 £137.11 List price £14,775

The cheapest new car to insure in the UK is the venerable Fiat Panda. It's a great option if all you want is a simple car that's cheap to buy and run, but it has fallen behind the standard set by newer rivals such as the Hyundai i10.

Fiat Panda review

2. Toyota Aygo X 1.0 VVT-i Pure manual

Red 2022 Toyota Aygo X front quarter tracking

Annual insurance premium £366.24 Saving vs November 2023 £114.08 List price £16,140

The Toyota Aygo X is a solid city car, offering a playful interior, great ergonomics and a sophisticated chassis. It is on the expensive side, though, given its small stature, and its 71bhp three-pot engine is almost rather wheezy.

Toyota Aygo X review

3. Hyundai i10 1.0 Advance automatic

Silver 2022 Hyundai i10 front quarter cornering

Annual insurance premium £387.78 Saving vs November 2023 £122.40 List price £16,030

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. You will have to opt for the underwhelming 66bhp three-pot engine to keep insurance costs down, though. 

Hyundai i10 review

4. Kia Stonic 1.0 T-GDi 2

Kia Stonic front quarter tracking

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Annual insurance premium £436.64 Saving vs November 2023 £147.64 List price £21,265

The Kia Stonic stands out in a crowded class for its strong kit provision and good handling, and it's a fair bit cheaper than many of its rivals too. It doesn't ride very well at low speeds, though, and the quality of its interior materials can't compete with rivals'.

Read our Kia Stonic review

5. Seat Arona 1.0 TSI 95 SE manual

Black 2022 Seat Arona front quarter tracking

Annual insurance premium £449.18 Saving vs November 2023 £80.73 List price £22,460

The Arona is a former class-leader and still a solid option if you’re in the market for a trendy crossover. Its interior looks and feels modern, although entry-level SE cars get only an 8.25in infotainment touchscreen. You might want to consider the step up to SE Technology trim, given that it ups the screen size to 9.0in and adds a sat-nav system plus rear parking sensors without increasing the cost of insurance.

Seat Arona review

6. Fiat 500 1.0 Mild Hybrid manual

Annual insurance premium £460.78 Saving vs November 2023 £60.46 List price £16,800

The 500 is effectively a Panda in a fashionable dress, offered with the same four-seat layout and 1.0-litre mild-hybrid petrol engine. It’s good fun to drive around town, thanks to light steering and the rev-happy nature of its engine. That said, it also has a lumpy ride and a cramped cabin, and it isn’t too refined either, so it isn’t the best long-distance option. It's due to be replaced by a new model based on the 500e in 2026. 

Fiat 500 review

7. Seat Ateca 1.0 TSI 115 SE Technology

Seat Ateca front quarter tracking

Annual insurance premium £466.07 Saving vs November 2023 £47.64 List price £29,260

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This family SUV was a gamechanger when it was launched, but it has lost its lustre over the years. Its engines can be a little coarse and the ride isn't very good on the 19in wheels fitted to range-topping cars. Better to stick with one of the smaller-wheeled entry-level versions instead, saving both on the car's price and on the cost of getting it insured.

Read our Seat Ateca review

8. Seat Ibiza 1.0 TSI 95 SE manual

Red 2022 Seat Ibiza front quarter cornering

Annual insurance premium £473.86 Saving vs November 2023 £91.31 List price £19,275

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. The steering is overly light, but that’s its only major failing.

Seat Ibiza review

9. Kia Picanto 1.0 2 automatic

Kia Picanto front quarter tracking

Annual insurance premium £476.87 Saving vs November 2023 £50.64 List price £16,295

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. We would advise against the automatic gearbox chosen here for its lower insurance group, though. It's lethargic when shifting gears and can spoil the drive. Only time will tell whether the new one is an improvement.

Kia Picanto review

10. Volkswagen Polo 1.0 MPI Life

VW Polo front quarter tracking

Annual insurance premium £497.21 Saving vs November 2023 £115.32 List price £20,975

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.

Charlie Martin

Charlie Martin Autocar
Title: Editorial Assistant, Autocar

As a reporter, Charlie plays a key role in setting the news agenda for the automotive industry. He joined Autocar in July 2022 after a nine-month stint as an apprentice with sister publication, What Car?. He's previously contributed to The Intercooler, and placed second in Hagerty’s 2019 Young Writer competition with a feature on the MG Metro 6R4

He is the proud owner of a Fiat Panda 100HP, and hopes to one day add a lightweight sports car like an Alpine A110 or a Lotus Elise S1 to his collection.

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Add a comment…
LP in Brighton 1 November 2023

Agreed, this makes no sense. Surely all things being equal there should be a direct correlation between the Group Rating and cost to insure? Otherwise why bother with the rating. This "guide effectively tells us there is no significant difference between any of the cars listed,

si73 1 November 2023
Your job, if you can find it from the limited list on insurance company website drop down menus, makes a big difference for quotes, I have before had at least two choices that were close to my job, if not exact, so I chose the cheaper one.
Also looking at the insurance groups shows what a nonsense the whole thing is, the picanto is a lower group and cheaper to buy than the 500 yet costs more, surely the lower value and insurance group should make it cheaper, same for the MG, a lower group and cost than the 500 and panda, yet more expensive to insure. What's the point of the groupings? They serve no purpose when a group 1 car is more expensive than a group 10.