Car insurance premiums continue to increase, with recent stats showing that a typical insurance policy increased by more than 50 per cent in 2023.
It’s made car insurance one of the most expensive motoring bills, with motorists being urged to shop around on comparison websites to get a better deal. Another way of lowering your car insurance premiums is by choosing a more compact car with a smaller engine – it can also reduce your motoring bills in general.
Car insurance premiums are based on a range of factors, but when it comes to the car itself, it’s largely down to what insurance group the vehicle is in. Insurance groups range from 1 to 50, with the lowest number equating to the cheapest insurance and the highest being the most expensive.
If you’re a new driver or just looking for a car that’s cheaper to insure, we’ve picked out some of the best options available that will help to reduce your premium.
Volkswagen Polo
You might expect a more upmarket car like the Volkswagen Polo to have a higher insurance group to go with it, but that’s far from the case as this supermini is actually available in the lowest group of 1.
On the latest Polo, introduced in 2017, it’s an entry-level, non-turbocharged 1.0-litre petrol engine that helps it to be cheaper to insure, with the more popular turbocharged ‘TSI’ unit sitting in higher groups. The Polo is also spacious, refined and has a fantastic interior.
Hyundai i10
If you want to lower your insurance premiums, a general rule is that the smallest cars will help to do this. That’s why we recommend looking at the Hyundai i10, which is another brand-new car available in the lowest insurance group of 1.
As part of a recent 2023 update, Hyundai has kitted its i10 out with even more standard equipment, including more safety features which have helped to lower the insurance groups. You will need the entry-level 1.0-litre petrol engine to take advantage of the lowest premiums.
Skoda Citigo
The Skoda Citigo has proven a popular first car for some time, and a key part of the attraction is its comparatively low insurance groups. That’s because regardless of which version of this city car you choose - with the exception of the electric model - the maximum insurance group it will sit in is 4.
With its small and efficient engines, the Citigo is very cheap to fuel and tax, yet despite its small size, has refined driving manners and has more interior space than you might expect.
Seat Ibiza
If you’re seeking one of the roomiest small cars around, you shouldn’t look much further than the Seat Ibiza. Especially in the case of the latest generation, it offers a big boot and plenty of rear seat space considering its size.
Despite being a more ‘grown-up’ small car, however, it’s still placed in very low insurance groups, starting from just 2. Again, you want to look out for the 1.0-litre naturally-aspirated ‘MPI’ engines and avoid the turbocharged TSI units where the lowest insurance is concerned.
Dacia Sandero
If you want a low-cost car, Dacia has been the brand to turn to for more than a decade, and the latest Sandero supermini is no exception. It’s bigger than before and therefore has a particularly roomy interior while being better to drive as well.
If you choose it with the entry-level 1.0-litre ‘SCe’ engine, it can also be fairly cheap to insure, with a group of just 3. The more popular turbocharged ‘TCe’ engine will be quite a lot more to insure, so don’t confuse the two.
Renault Captur
SUVs and crossovers have grown hugely in popularity, and though generally they are more expensive to run and insure, there are exceptions with cars like the Renault Captur. It’s the French firm’s smallest SUV but punches well above its weight when it comes to quality and spaciousness on the latest generation, which was introduced in 2020.
With the entry-level 1.0-litre turbocharged TCe petrol engine under the bonnet, it can be fairly cheap to insure, with insurance groups starting from 7. All other engines will be quite considerably more to insure.
Toyota Aygo X
The Toyota Aygo X is one of very few new city cars that have launched in recent years, so if you want a showroom-fresh small car, it’s well worth a look. The entry-level Pure model is the model with the lowest insurance group of 5, though still gets plenty of equipment including 17-inch alloy wheels, a reversing camera and various safety assists.
The Aygo X stands out with its funky crossover-like styling, though still comes with small petrol engines that will be frugal to run. This Toyota isn’t the best on the motorway, though, and is better suited to driving around town.
