As a younger driver in the pursuit of affordable car insurance, the car you drive is one of the few factors you can control. These 10 cars are among the cheapest to insure in the UK.
Aside from the cost of buying a vehicle, for drivers aged 17 to 25, the most expensive aspect of motoring is insurance. This is because age - or lack of - is a big determining factor in how insurers calculate their car insurance premiums; younger drivers are simply more likely to have an accident.
In calculating your premium, insurers also take a keen interest in your driving history (accidents, points, claims etc), as well as experience (how long you’ve been licensed).
But the make and model of the car being insured also play a significant role in how much you’ll pay for cover. In general, smaller cars with lower-powered engines will land in the lower insurance groups (more on these later) and therefore attract a more modest premium. Bigger, sportier, quicker cars will, conversely, see your insurance direct debits soar.
Cheapest cars to insure for younger drivers: At-a-glance
The following list is based on data from Admiral.
- Volkswagen T-Roc – average annual premium: £974.53
- Ford Puma – average annual premium: £975.60
- Seat MII – average annual premium: £986.93
- Skoda Citigo – average annual premium: £987.63
- Volkswagen Up! – average annual premium: £987.63
- Renault Captur – average annual premium: £1,028.02
- Peugeot 108 – average annual premium: £1,050.28
- Fiat 500 – average annual premium: £1,067.84
- SEAT Arona – average annual premium: £1,073.12
- MG Motor UK, MG3 – average annual premium: £1,085.53
Top 10 cheapest cars to insure for younger drivers: In-depth
Many of the following cars are feature-rich - but won’t make you feel poor when the insurance is due.
1. Volkswagen T-Roc – average annual premium: £974.53
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VW’s T-Roc is cheap to insure because it combines low-risk (i.e. inexpensive) engines, strong safety features, and decent security with a lower insurance group (many T-Roc trims fall into insurance groups 8 - 15). It makes a good first car because it’s easy to drive (and park!), practical, safe, and affordable to run. And crucially, it's not boring.
2. Ford Puma – average annual premium: £975.60
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The rather sporty Ford Puma balances style and affordability, making it a popular choice among younger drivers. With average annual insurance premiums of around £975.60, it ranks among the more budget-friendly options in its class. Insurance groups for the Puma range from 12 to 20, depending on the model and engine spec.
Opting for lower-spec base versions with smaller engines can help keep premiums sensible. Its compact size, combined with features like hybrid technology and good fuel economy, contribute to lower running costs - and crucially, lower insurer risk. Additionally, the Puma's strong safety features, including multiple airbags and stability control, all help keep insurance premiums down.
3. Seat Mii – average annual premium: £986.93
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The SEAT Mii is a small city car with a modest 1.0-litre engine - which helps place it in insurance group 1. Little wonder it’s one of the cheapest cars to insure in the UK. Its low repair costs and basic performance reduce perceived insurer risk. Compact and easy to park, it’s ideal for city driving. Efficient fuel economy and simple maintenance make it a practical, budget-friendly first car.
4. Skoda Citigo – average annual premium: £987.63
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The Škoda Citigo topped this list in 2022, and remains one of the most affordable cars to insure for younger drivers. Its small 1.0-litre engine and low insurance group placement (Group 1–3) make it extremely cheap compared with larger or sportier models. Despite its diminutive dimensions, the Citigo comes with essential safety features like airbags and stability control. Its light, manoeuvrable design makes it ideal as a city runabout, while fuel efficiency and low road tax add to its affordability. For a first-time driver, it combines extremely low insurance costs with practicality and reliability.
5. Volkswagen Up! – average annual premium: £987.63
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The Volkswagen Up! is another city-friendly car that’s inexpensive to insure. Low-powered 1.0-litre engines and placement in low insurance groups keep premiums down. Its simple design, easy maintenance, and solid build reduce repair costs and critically, insurer risk. Safety features such as electronic stability control, airbags, and immobilisers further help to lower premiums. The compact dimensions make it easy to drive and park, so it’s ideal for beginners. With excellent fuel economy, low running costs, and strong reliability, the Up! is a popular choice for young drivers seeking low-cost insurance.
6. Renault Captur – average annual premium: £1,028.02
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The Renault Captur is a small crossover with insurance-friendly qualities, particularly when it comes to entry-level trims. Lower-spec versions with smaller engines fall into lower insurance groups, which keeps premiums acceptable for those on a budget. The Captur benefits from a strong safety record, including airbags, stability control, and driver-assist features like lane departure warning.
Repairs and parts are relatively affordable compared with higher-end SUVs, and the compact size reduces accident risk in city driving. It also offers practicality, with a comfortable cabin and decent boot space. For young drivers looking for a crossover without the high insurance costs, the Captur is a solid option.
7. Peugeot 108 – average annual premium: £1,050.28
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The Peugeot 108 is a small city car that’s naturally cheap to insure due to its tiny 1.0-litre engines and low insurance group ranking. Its lightweight design and compact size reduce accident risk, and repairs are inexpensive thanks to widely available parts. Standard safety features such as airbags and stability control further reduce insurance premiums.
Economical to run, with excellent fuel efficiency and low road tax, the 108 is ideal for short commutes and as an urban runabout. It’s a practical choice for new drivers who want an easy-to-drive, reliable, and low-cost car.
8. Fiat 500 – average annual premium: £1,067.84
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The Fiat 500 combines retro styling with insurance-friendly characteristics, particularly in smaller engine variants. Base models are placed in lower insurance groups, helping young drivers keep premiums down. The car’s compact size reduces the likelihood of expensive collisions, while repairs and maintenance remain affordable. Safety features like multiple airbags, stability control, and immobilisers make it a low-risk option for insurers. Fuel-efficient engines and low running costs add to its appeal among newer drivers.
9. SEAT Arona – average annual premium: £1,073.12
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The SEAT Arona is a small SUV that’s relatively cheap to insure, especially in entry-level trims with their smaller engines. Insurance groups are moderate, and the car’s compact size reduces collision risk, while repairs are usually reasonably priced. Safety equipment such as multiple airbags, stability control, and advanced driver-assist features further lower premiums.
Economical to run, with good fuel efficiency and low road tax, it’s practical for city and suburban driving. For a young driver looking for an SUV experience without the high cost of insurance typically associated with larger crossovers, the Arona ticks a lot of boxes.
10. MG Motor UK, MG3 – average annual premium: £1,085.53
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The MG3 is a small hatchback that’s likely to appeal to budget-conscious young drivers - mainly because of its low insurance costs. Smaller engines in base models keep it in lower insurance groups, keeping a lid on premiums. Its simple, easy-to-repair design also helps insurers limit risk. Standard safety features like airbags, stability control, and modern security systems further contribute to lower insurance costs.
The car is economical to run, with good fuel efficiency and affordable maintenance. It’s a sensible choice for first-time drivers who want a reliable car without paying high insurance premiums.
Car insurance has increased faster than inflation
When we compiled this list back in 2022, car insurance costs were significantly lower than they are now. For example, insuring a base model Skoda Citigo cost around £512 three years ago. Today, insuring a comparable Citigo model will cost you about £987 per annum - equating to an eye-watering 92.8%.
Similar increases were seen across the insurance industry. As an article on Parliament.uk notes:
“Between May 2021 and June 2024, the price of consumer goods and services in general rose 21%. By comparison, the quoted price of car insurance rose 82%.”
How to cut the cost of car insurance?
With across-the-board insurance increases, it’s little wonder younger drivers place a heavy focus on ways to cut their premiums. One of the most effective approaches is to buy a smaller car - ideally of the used variety.
Sign up for black box insurance and fit a Thatcham-approved alarm, and your insurance costs could come down further.
What makes a car cheap to insure?
Several factors contribute to making a car cheaper to insure, especially for new drivers:
- Insurance groups: Cars are ranked from group 1 to 50 based on performance, repair costs, and safety. Vehicles in insurance group 1–3 are the cheapest to insure and are ideal for young drivers.
- Small engine size: Lower-powered cars are less likely to encourage risky driving and are cheaper to repair.
- Basic specifications: Entry-level trims often have fewer expensive gadgets, helping reduce the cost of replacement parts.
- Modern safety features: Vehicles with good crash ratings and advanced safety tech can lead to cheaper premiums.
- Security: Factory-fitted or Thatcham-approved alarms and immobilisers make the vehicle harder to steal and cheaper to cover.
- Build quality and repair costs: Reliable brands with easy-to-source parts help keep claims and premiums low.
Car insurance groups explained
Insurance providers use insurance groups to help work out what premiums to charge.
There are 50 insurance groups in total, with the lowest insurance group - insurance group 1 - offering the cheapest premiums.
Cars within Insurance group 1, insurance group 2 and insurance group 3 tend to be popular with younger drivers as these are the cheapest to insure.
Cheapest cars to insure for new drivers over 25
Thankfully, insurance costs come down as you get a little older (assuming you maintain a clean driving record). Insurers view those aged over 25 as less likely to be involved in a collision - which is backed up by the statistics.
According to data from insurer Admiral, 10 of the cheapest cars to insure for new drivers over 25 are:
- Ford Puma – average annual premium: £538.63
- Fiat 500 – average annual premium: £618.57
- Volkswagen T-Roc – average annual premium: £627.82
- MINI Cooper – average annual premium: £662.57
- Peugeot 2008 – average annual premium: £676.48
- Hyundai Tucson – average annual premium: £676.96
- Hyundai i10 – average annual premium: £677.02
- Kia Sportage – average annual premium: £680.40
- Audi Q2 – average annual premium: £688.04
- Vauxhall Mokka – average annual premium: £690.80
More insurance saving tips for young drivers:
- Choose a cheaper car
- Choose a car insurance policy with telematics or “black box insurance”
- Add an experienced driver with a clean record to your policy
- Ensure your car is safe and secure, ideally with an alarm approved by Thatcham (The motor insurers’ automotive research centre)
- Whether looking to buy a second-hand car or a brand new car, it is worth first off it’s worth checking which checking which insurance group it falls into so you have an idea how much it may cost you to insure
- If you can afford to, paying your insurance annually rather than monthly usually works out cheaper
- If you're yet to take your driving test, research insurance-friendly models early to avoid surprises later
- Don’t presume older models are always cheaper to insure: Newer vehicles have better security and technology, making them safer to drive and harder to steal, so can be cheaper to insure than an older version of the same model of car.
Sources: Admiral, Experian
