What are the cheapest cars to insure in 2026?
Key takeaways
The car you drive can have a significant impact on how much your car insurance costs
Insurers consider your car’s make and model, its value, age and safety features, as well as personal factors such as your driving history, when setting insurance premiums
Based on our own data from the past three months, we’ve put together a list of the cheapest cars to insure for young drivers, and this should give you an idea of the types of cars that are generally less expensive
What are the cheapest cars to insure for young drivers in 2026?
Vehicle model | Average annual premium |
|---|---|
VOLKSWAGEN UP! MOVE UP | £720 |
FORD KA ZETEC | £782 |
HYUNDAI I10 SE | £812 |
PEUGEOT 108 ACTIVE VTI 68 | £813 |
FIAT 500 LOUNGE | £817 |
HYUNDAI I10 PREMIUM | £821 |
FIAT 500 POP | £850 |
FIAT 500 S | £905 |
FORD KA STUDIO | £945 |
MINI COOPER D | £953 |
Some of the cheapest cars to insure for new and young drivers, according to MoneySuperMarket data, are the Fiat 500, Volkswagen Up! and Peugeot 107. Here’s a look at each car in more detail, and what makes them a great pick for new drivers.
Fiat 500
The Fiat 500 is a stylish and compact city car, which appeals to young drivers thanks to its retro design, low price, nimble handling and fuel efficiency from its mild-hybrid petrol engine.
It’s generally found in insurance groups 3-15, depending which trim level you choose. Among the cheapest to insure are the Lounge, S and Sport trims. If you opt for the electric Fiat 500e you’re likely to pay as it typically falls into insurance groups 13-19.
The Fiat 500 is particularly well suited to city driving, with a small footprint and light steering making parking and manoeuvring effortless.
However, its boot is small and it lacks the latest safety technology, such as autonomous emergency braking and adaptive cruise control (except in the 500e) so you might also want to consider one of its key rivals, the Hyundai i10, which is one of the cheapest cars to insure for young drivers too.
Volkswagen Up!
The Volkswagen Up! is a small and practical hatchback with a surprisingly spacious interior, although there’s no middle seat.
The Up! is known for its strong build quality and efficient 1.0-litre three-cylinder petrol engine, making it great for both city driving and short trips on the motorway, and you can choose between a three- or five-door model.
It’s a good option for young drivers due to a number of its variants, such as the Move Up, falling into the lowest insurance groups (1-4). However, the sporty Up GTi falls into group 17, while the all-electric E-Up is in insurance group 10.
Peugeot 107
The Peugeot 107 is a compact and efficient city car known for low running costs, easy maintenance and manoeuvrability
It’s usually found in insurance group 3, which is one of the lowest groups, making it another great choice for young drivers. Even the top spec Envy sits in groups 3-5.
The 107 Active’s small but peppy 1.0-litre petrol engine, which is also used in sister cars the Citroen C1 and Toyota Aygo, makes it perfect for urban environments where agility and fuel efficiency matter most.
You can choose between a three- and five-door model but expect a fairly basic interior and minimal boot space.
Why are some cars cheaper for me to insure than others?
In the UK, cars are categorised into one of 50 insurance groups, with insurance group 1 being the lowest risk and typically cheapest to insure, and group 50 the highest risk and usually most expensive to cover.
Group ratings are based on things like a car’s performance, safety and security featutes, and repair costs so faster, bigger and more powerful cars with rare parts or modifications will be pricier to cover. On the other hand, cars with smaller engines and lower performance specs are at less risk of being involved in accidents so they’re generally cheaper to insure.
If you’ve bought a brand new car, which was launched in August 2024 or later, it will have a vehicle risk rating, which gives insurers better insight on the risks of insuring a particular vehicle, based on real-world claims data. Find out more in our vehicle risk rating guide.
💡 Top tip: Although the car you drive is a big factor in how much you pay for car insurance, personal factors, such as your age, are important too. Therefore, the cheapest cars to insure for new drivers can differ from what is generally cheaper for everyone.
How does my age affect which car is cheapest for me to insure?
If you’re a young driver (typically under 25): Insurers consider you high risk due to your lack of driving experience and accident stats for this age group so you’ll usually find city cars with small engines, like the Volkswagen UP!, are cheaper for you to insure. These types of cars cost less to repair or write-off if you have an accident so their insurance costs are lower.
If you’re in your 30s and 40s: You typically have more driving experience and have built up a no-claims discount. Your lifestyle is also likely to have changed so family cars, such as the Volkswagen Golf and Honda Civic, are among the cheapest to insure, according to MoneySuperMarket data.
If you’re an older driver (aged 50 and over): You’ll usually have the cheapest premiums as you’re considered lower risk, particularly if you’re doing fewer miles when you reach retirement. Our data shows an increase in classic cars, such as the Austin A35 and Wolseley 16/60, being among the cheapest to insure for older drivers.
What are the cheapest cars to insure in 2026?
Overall, cars from volume manufacturers, as well as sports cars, which are likely to be owned by older, affluent drivers who live in low crime areas and may do fewer miles, are among the cheapest cars to insure, according to MoneySuperMarket data.
These include the:
Porsche Boxster (average insurance price: £258
^ )Ford Fiesta (average insurance price: £563
^ )Skoda Octavia (average insurance price: £423
^ )
What other factors affect my car insurance costs?
As well as the model of your car and your age, insurers will look at a range of risk factors including:
Your location: Your postcode will be taken into account, to assess things like crime rates and traffic that can affect your risk profile
Your occupation: Certain job titles carry higher risks than others
Your driving history: If you have a history of accidents or car insurance claims, insurers will see you as a high risk for claiming again in the future, so they’ll charge more for cover. On the flip side, going without making a claim for at least a year means you start building a no-claims discount
Your annual mileage: If you’re a higher-mileage driver (over 20,000 miles/year) you’re likely to pay more due to your higher accident risk
How can I get cheaper car insurance?
No matter your age or the insurance group of your car, there are ways to reduce your insurance costs:
Improve your security: If your car is parked off the street, such as in a garage or on a driveway, you'll likely pay less for insurance. Installing an alarm or immobiliser can also be beneficial.
Limit your claims: Paying for minor repairs out of pocket can help you maintain your no claims bonus, making you less of a risk in the eyes of insurers.
Use a black box: For younger drivers, telematics insurance can help keep costs down by monitoring driving habits. Safe driving can lead to discounts on premiums.
Pay annually: Opting to pay your insurance in one annual lump sum every year is usually cheaper than monthly instalments
Increase your voluntary excess: Increasing your excess is the fastest, simplest way of reducing your car insurance premiums - just be sure you can afford to pay it if you need to claim
If you're interested in find out more ways to save money on your car insurance, check out our car insurance money saving tips.
How can I find out which insurance group my car is in?
If you’re not sure what group your car is in, you can find out very easily with our car insurance group checker.
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Your car
Your car insurance group
Group 8/50
This car is among the lower insurance groups which should be good news for your premium. Cars in lower groups are typically cheaper to insure.
This car ranks in the middle insurance groups so it isn’t among the cheapest cars to insure, but it won’t be one of the most expensive.
This car is towards the higher end of the scale which means it could be relatively expensive to insure.
Simply enter your registration number, or look up the make and model manually, and we’ll show you how your car’s been ranked.
Author
Mehdi Punjwani
Insurance specialist
Mehdi is a financial writer and editor with over six years of experience in personal finance. He has written for organisations and publications including Equifax, The AA, and USAToday, covering a...
Reviewer
Sarah Tooze
Car & Van Insurance Expert
Sarah Tooze has been a motoring journalist for more than 15 years, specialising in company cars and vans, and has won a number of awards during her career, including the Newspress ‘Automotive...
