Insurance for a Fiat Panda is now £137 cheaper than it was in November 2023Car 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 confused.com, 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 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's also fallen behind the standard set by newer rivals such as the Hyundai i10.
2. Toyota Aygo X 1.0 VVT-i Pure (manual)
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 given its small stature, though, and the 71bhp three-pot engine is almost rather wheezy.
3. Hyundai i10 1.0 Advance (automatic)
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’ll have to opt for the underwhelming 66bhp three-pot engine to keep insurance costs down, though.
4. Kia Stonic 1.0 T-GDi 2
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'.
5. Seat Arona 1.0 TSI 95 SE (manual)
Annual insurance premium £449.18 Saving vs November 2023 £80.73 List price £22,460
This 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, given it ups the screen size to 9.0in and adds a sat-nav system plus rear parking sensors – without increasing the cost of insurance.
6. Fiat 500 1.0 Mild Hybrid (manual)
Annual insurance premium £460.78 Saving vs November 2023 £60.46 List price £16,800
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’s also got a lumpy ride and 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.
7. Seat Ateca 1.0 TSI 115 SE Technology
Annual insurance premium £466.07 Saving vs November 2023 £47.64 List price £29,260
This family SUV was a gamechanger when it launched, but it's 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.
8. Seat Ibiza 1.0 TSI 95 SE (manual)
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 the Ibiza’s only major failing.
9. Kia Picanto 1.0 2 (automatic)
Annual insurance premium £476.87 Saving vs November 2023 £50.64 List price £16,295
The Picanto's recent facelift addresses its key weakness, 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'd 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.
10. Volkswagen Polo 1.0 MPI Life
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's a great choice. The 1.0-litre 'MPI' engine featured here lacks a turbo so 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.
