What cars are the cheapest to insure in 2023?
Insurance (annoyingly!) is one of the most significant motoring expenses for many people. So, it is wise to explore ways to reduce this expense by opting for a smaller car with affordable coverage. If you’re curious about the best cars available to ensure inexpensive insurance, continue reading to discover some excellent options.
Cars are categorised in an insurance group between one and fifty – one is the cheapest tier, and fifty is the most expensive. Your occupation, age, driving history, health, postcode, and location can affect how much you pay on your insurance premium; the car you choose has a significant impact on this too.
So, what impacts a car’s insurance group?
There are a variety of things that can affect a car’s insurance group; see below:
How powerful it is (Higher horsepower)
How much the car is worth.
What safety equipment it’s kitted with.
How expensive repairs are.
Any add-ons or upgrades you have made to the vehicle.
It’s important to note that small changes to a vehicle specification can impact its insurance group significantly. While most new cars have a host of mandatory safety equipment, such as autonomous emergency braking and sensors, these can actually push up your insurance premiums more. As they will require recalibration or replacement following a collision, repair costs are up, and your insurance will increase as a result.
We’ve cherry-picked the below vehicles that are currently on sale. However, it’s important to note that the specific engine size that solidifies the car in a low insurance group may not always be available in some cases. This is especially true because of the global semiconductor shortage, as new car makers rationalise their line-ups.
With this in mind, the best thing to do is to check how much a specific car you’re considering buying costs to insure with a particular provider, or by using price comparison websites if you have access to the vehicle’s registration number, even better – as this will enable you to get more exact quotes.
Typically, insurance premiums on older cars can be cheaper, so purchasing a used vehicle may be a good idea if you’re looking for a bargain. The semiconductor chip shortage is causing issues in the new car market, as car makers are often building vehicles in bulk with popular equipment fitted versus the basic specifications they once did.
Insurance Group 2
Insurance Group: 2
The Volkswagen Up is a timeless champion, maintaining its status as a top performer year after year. While the interior may have a straightforward design, it is packed with standard features, including DAB radio, Bluetooth connectivity, and air conditioning.
Thanks to excellent packaging, the Up offers more interior space than you might expect. Being a Volkswagen, the interior quality is impressive, even for such an affordable car. However, it’s worth noting that the 60hp engine, which falls into insurance Group 2, needs to be revved vigorously to keep up with traffic.
Insurance Group 3
Insurance Group: 3
The Hyundai i10 stands out as a comfortable and elegant option, boasting an interior adorned with carefully selected, soft materials that create a sense of sophistication usually associated with larger vehicles. Furthermore, each Hyundai is equipped with a sleek touchscreen entertainment system, enhancing the overall driving experience.
While these engines adequately serve urban driving needs, if you anticipate frequent motorway trips, consider investing in a higher-powered model despite the accompanying additional cost.
Insurance Group: 3
The Kia Picanto is an excellent choice for city driving, offering eye-catching styling options and impressive standard equipment, excluding the entry-level version. Opting for mid-spec cars grants you alloy wheels, Bluetooth connectivity, and air conditioning. If you desire more advanced features, consider a slightly higher trim level, which includes an easy-to-use touchscreen infotainment system.
While the 1.0-litre engine performs adequately in urban environments, it may feel strained when reaching higher speeds on the motorway, accompanied by some cabin noise. If you prefer more power, there’s an option to upgrade to a turbocharged 100hp unit but do keep in mind that these models typically come with higher insurance costs. Additionally, all Kia Picanto models have a reassuring seven-year warranty, providing peace of mind. Interestingly, the mid-level two trim falls into a slightly lower insurance group than the basic 1 model, further enhancing its appeal.
Insurance Group: 3
Looking for a car with cheap insurance? Look no further than the Volkswagen Polo. With its comfortable and classy design, this vehicle boasts an interior filled with premium materials, providing a luxurious big-car feel. Plus, every VW Polo comes equipped with a slick touchscreen entertainment system, ensuring an enjoyable driving experience.
The Volkswagen Polo’s low insurance group rating sets it apart, making it an ideal choice for those seeking affordable coverage. While the lower-powered 1.0-litre engines may lack some performance, they are perfect for city driving.
With the Volkswagen Polo, you can enjoy the best of both worlds: cheap insurance and a comfortable, stylish ride. Explore this affordable insurance group car today and discover why it’s a smart choice for those seeking a wallet-friendly option.
Insurance Group: 3
Don’t let its size fool you—the SEAT Ibiza packs a punch in terms of spaciousness, especially considering that some models fall into insurance Group 3. It comfortably accommodates four adults, and you’ll find a practical 355-litre boot to meet your storage needs. However, while the exterior boasts stylish looks, the interior design lacks the same level of appeal and feels a bit plain.
Regardless of the trim level, all SEAT Ibiza models have a colour touchscreen infotainment system, alloy wheels, and a leather steering wheel as standard. It’s worth noting that the 1.0-litre MPi engine produces a modest 80hp. Like the Fiesta mentioned earlier, opting for the more modern and enjoyable turbocharged 100hp 1.0-litre engine (TSI) will result in higher insurance costs.
Experience the SEAT Ibiza’s surprising spaciousness and standard features while enjoying the benefits of its insurance-friendly Group 3 classification. Remember the engine options and insurance implications as you explore the Ibiza lineup to find the perfect balance of performance and affordability.
Insurance Group: 3
The Renault Clio may surprise you with its insurance classification in Group 3 when you step inside. The interior boasts a smart and minimalist dashboard design, with materials that exude a classy and well-crafted feel.
In terms of space, both you and your front-seat passenger will find ample room to be comfortable. However, taller individuals seated in the rear may feel less satisfied with the available space.
To secure affordable insurance rates, keep an eye out for a Clio equipped with the 73hp SCe 1.0-litre engine. It’s worth noting that Renault no longer offers this option for new vehicles, so be sure to conduct thorough research before purchasing.
Experience the Renault Clio’s surprising combination of style, comfort, and insurance-friendly classification in Group 3. Take the time to explore the market and find the perfect Clio that meets your needs and budget.
Insurance Group 4
Insurance Group: 4
If you’re in search of an affordable yet high-quality option, the Kia Rio fits the bill perfectly. Despite its affordable price tag, the interior of the Rio exudes a sense of quality that surpasses its budget-friendly nature. Generosity in terms of equipment is a standout feature across the range, with all models boasting Bluetooth connectivity and air conditioning. Additionally, mid-spec cars and above come standard with a touchscreen infotainment system, adding convenience and entertainment to your driving experience.
To secure cheaper insurance rates, similar to the other cars mentioned here, it’s recommended to opt for the base engine. In the case of the Kia Rio, this means choosing the 84hp 1.2-litre unit. By selecting this engine, you can enjoy the benefits of affordable insurance without compromising performance.
Insurance Group: 4
The Skoda Fabia provides excellent value for your money and is a compelling alternative to the Volkswagen Polo. It offers comparable equipment and engine options as the Polo but at a more affordable price. While the interior of the Fabia provides a pleasant seating experience, it may differ from the Polo in terms of build quality. Nevertheless, it remains comfortable for travel purposes.
For insurance purposes, the entry-level 80hp 1.0-litre MPI engine falls into group 4. However, it may feel somewhat sluggish, particularly if you plan on using the Fabia for motorway driving. In such cases, opting for the more modern and powerful TSI engine would be beneficial, albeit resulting in higher insurance groups. Regardless of the engine choice, all models of the Fabia offer good fuel efficiency, ensuring that whichever option you choose, won’t strain your wallet.
Insurance Group 5
Insurance Group: 5
In the past, Micra was available in insurance group 1, but that option is no longer offered. However, you can still secure affordable insurance rates by choosing the 92hp 1.0-litre Acenta model with the CVT automatic gearbox, which falls within insurance group 4. Please note that if you prefer the manual model, the insurance group increases to 8.
Regardless of the chosen model, the Micra impresses with its stylish design, comfortable interior, and easy handling. Additionally, it offers excellent fuel efficiency and affordable servicing costs, making it an economical choice overall.
Insurance Group: 5
Despite its low price, this vehicle proves that affordability doesn’t equate to poor quality. It comes with a generous range of standard features, such as Bluetooth connectivity and air conditioning, ensuring a comfortable driving experience. You also have the option to include a touchscreen infotainment system for added convenience.
While Dacia has discontinued the entry-level Sandero Access, you can still find an economical Essential model that falls within Insurance Group 4. This means you can enjoy cost-effective coverage without compromising on basic necessities.
The Dacia Sandero is a testament that budget-friendly cars can still provide excellent value. Don’t miss out on the opportunity to own the cheapest new car that doesn’t skimp on quality.
Insurance Group 6
Insurance Group: 6
While the Panda may not possess the same level of style as its design-conscious cousin, the Fiat 500, it still exudes character and delivers on practicality.
Consider the Life model equipped with the 70hp 1.0-litre petrol engine if you’re looking for affordable insurance rates. This model falls within insurance Group 7, complementing the Panda’s reputation for low running costs typically associated with small Fiats.
Discover the charm of the Panda, a car that strikes a balance between character and practicality. Its affordable insurance group and cost-effective operation make it a smart choice for those seeking an enjoyable driving experience without breaking the bank.
Toyota Aygo X
Insurance Group: 6
While the standard Toyota Aygo city car may no longer be available, it has been replaced by the Aygo X, an SUV-inspired model introduced in 2022. The Aygo X not only carries on the legacy but also offers affordable insurance rates with its group 6 rating. Opting for the Pure or Edge version ensures this favourable insurance classification, while the higher-specification Exclusive trim falls into group 7.
Featuring light steering and a raised ride height, the Aygo X is an excellent companion for urban driving. Its rugged appearance adds a touch of visual flair that sets it apart from conventional city cars.
Experience the Toyota Aygo X, the successor to the beloved Aygo city car. Benefit from its affordable insurance rates, enjoy its agile handling in town and revel in its distinctive SUV-inspired design that adds a stylish twist to your daily drives.
Insurance Group 7
Insurance Group: 7
Although it may not possess the same level of style as the Fiat 500, the MG3 compensates with its spacious interior, affordability, and engaging handling. It offers a compelling package that is both affordable to purchase and operate.
If you opt for either the Explore or Excite models of the MG3, which come with a 1.5-litre petrol engine, you’ll also benefit from low insurance rates in group 7. This makes it an even more cost-effective choice for insurance coverage.
Discover the MG3, a practical and budget-friendly alternative to the Fiat 500. With its generous interior space, affordable pricing, and enjoyable driving dynamics, it offers a compelling option for those seeking a value-packed car without compromising on fun.
Insurance Group: 7
The Ford Fiesta holds a prominent position among the best-selling cars in the UK, and for good reason—it’s a versatile choice that excels in various aspects. Combining advanced technological features typically found in higher car classes with a small car’s agility and fuel efficiency, the Fiesta offers an impressive package. The only drawback is that it may not provide as much interior space as some of its competitors.
Under the hood, the 1.0-litre three-cylinder engine shines, contributing to the Fiesta’s exhilarating driving experience and excellent fuel economy. However, it’s important to note that ensuring this model may come at a higher cost. The more traditional 1.1-litre petrol engine, available exclusively on the basic Trend model, falls into the lower insurance groups and provides a more affordable option.
Insurance Group 8
Insurance Group: 8
While the Fiat 500 falls into insurance Group 8, which is relatively high within its category, it still offers reasonably affordable coverage. However, it’s crucial to select the appropriate trim level from the extensive range Fiat has offered over the years. This is important because the group ranking may increase for certain configurations. Specifically, Group 8 applies to the Pop model equipped with the 70hp 1.0-litre engine.
Regardless of the chosen model, you can expect the Fiat 500 to be more than just a car—it’s a design icon. The retro-modern aesthetic has stood the test of time, maintaining a fresh appeal despite its existence for several years. Moreover, the driving experience of the Fiat 500 matches its charismatic character, ensuring enjoyable journeys every time.
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Ready to purchase your next car?
We know choosing the perfect car and figuring out the best finance option can feel overwhelming. But it doesn’t have to be that way. At Marsh, we’ve simplified the process.
Whether you’re dreaming of the stylish Volkswagen Polo, the practical Kia Picanto, or perhaps the reliable Ford Fiesta, we can make your dreams come true. With our easy, flexible, and quick car finance options, you can get behind the wheel sooner than you think.
We understand that everyone has unique needs and circumstances, and we tailor our solutions to meet yours. We’ve made our process worry-free, and you don’t need to be concerned about your credit score being affected when applying.
Best of all, there’s no waiting around. You’ll receive a decision on the very same day. This means you can focus on what really matters – enjoying the freedom and excitement of driving your new car. So why wait?
Start your journey to car ownership with Marsh. Apply for car finance today and discover how easy and hassle-free the process can be. After all, you deserve the car you desire without any undue stress. With Marsh, you’re not just getting a car; you’re getting peace of mind.
Representative example: borrowing £10,000 over 60 Months with a representative of 17.9% APR, an annual interest rate of 17.9% (fixed) and a deposit of £0.00, the amount payable would be 59 repayments of £246.25 per month, with one final repayment of £256.25 (which includes the option to purchase fee of £10.00), with a total cost of credit of £4,785.00 and a total amount payable of £14,785.00.