Top 20 Cheapest Cars to Insure in the UK (& Insurance Pricing Chat)
In this one, we’re looking at an article from Wat Car, and it’s about the top 20 cheapest cars to insure in the UK. However, at the end of the article, I’m going to talk more about insurance pricing. While the car is a factor in your insurance price, you and the things around you play a much bigger role than most people realize.
Many are hesitant to get a new car because they assume it will cost a fortune to insure. In reality, it often costs not much more than what they already have. That’s because much of the price is influenced by where you live and factors specific to you and your environment, such as local traffic and other considerations. I’ll discuss that further later, but first, let’s look at this article. I hope you find it useful and interesting.
Top 20 Cheapest Cars to Insure in the UK 2024
We’re looking at a piece today from C.L.A. Evans in What Car, about the top 20 cheapest cars to insure in 2024. According to stats from the ABI (Association of British Insurers), the number one cheapest car to insure is the Fiat Panda, with an average cost of £688. This average is likely swayed by people living in London, so if you’re in the countryside, you might expect to pay a bit less. Additionally, many Fiat Panda drivers are young, which can impact the rate. This is for the 1.0-litre mild hybrid version, which is in insurance group 8 and has a one-star rating from What Car? So, while it might be cheap to insure, it doesn’t impress in other areas.
Toyota Aygo X and Kia Picanto
Next, we have the Toyota Aygo X, with an insurance cost of £716 for the 1.0-litre VVT-i Pure model, priced at £16,000 new. It’s in insurance group 5. Number three is the Kia Picanto, costing £730 to insure for the 1.0-litre 2-spec model, priced at £14,500. It’s in insurance group 3, which is great, and it has a three-star rating from What Car?
Hyundai i10 and Dacia Duster
Moving on to number four, we have the Hyundai i10, which is essentially the same car as the Kia Picanto. The cost to insure the 1.0-litre Advance model is £15,500. Number five is the Dacia Duster, which stands out as the biggest car on the list, costing £768 to insure. The Duster is priced at £19,000 new and is in insurance group 19. Interestingly, this car still manages a five-star rating from What Car? which is impressive considering its price point.
SEAT Ibiza and Dacia Sandero
At number six, we find the SEAT Ibiza, with a 1.0-litre TSI 95 SE model, priced at £17,272. The Ibiza is one of my favourites, as I think it’s a brilliant little car that deserves more recognition. The insurance cost is £772, and it holds a four-star rating from What Car?
Number seven is the Dacia Sandero, which costs £843 to insure. The list price for the 1.0-litre TCE Essential model is nearly £14,000, and it has a four-star rating. Next up, we have the Fiat 500, costing £896 to insure for the 1.0-litre hybrid version, priced at £16,800. It’s in insurance group 10, with a two-star rating from What Car?
Volkswagen Polo and Hyundai i30
The Volkswagen Polo comes in at number nine, with an insurance cost of £929 for the 1.0-litre 80 Life model, priced at £21,000. Unsurprisingly, it holds a four-star rating from What Car? Number ten is the Hyundai i30, which I think is a fantastic car, especially if you’re considering alternatives like the Astra or Focus. The 1.0-litre TGDi SE Connect model costs nearly £23,000 and has a three-star rating.
Other Models Mentioned
Rather than going through all the remaining models in detail, let’s just mention a few: the Skoda Fabia, SEAT Leon, Renault Clio, Skoda Kamiq, Peugeot 2008, SEAT Arona, Kia Stonic, Volkswagen T-Roc, Skoda Scala, and the SEAT Ateca. Each has varying insurance costs and star ratings.
Tips to Lower Your Insurance Premium
There are some steps you can take to lower your premium, particularly when it comes time for renewal. One key factor is your annual mileage. Many people overestimate how many miles they drive per year. For instance, you might say you drive 10,000 or 12,000 miles annually, but in reality, you might only do 5,000 or 6,000. Check your previous MOTs to see what your actual mileage is. Also, if you have the option to park your car on a driveway overnight, make sure that’s reflected in your insurance. Be careful about claiming the car is garaged unless you’re sure you can keep it there at all times—some policies include a clause that only covers theft if the car is in the garage.
Third-Party Damage Costs
Insurance companies don’t just focus on the risk of you having an accident. They also consider the potential damage you could cause to someone else. Even if your car is worth £500, your insurance might cost £600 because of the high cost of covering potential third-party claims. Accident management companies often charge insurers hundreds of pounds a day for hire cars, which drives up overall costs. That’s one reason insurance prices and the fees comparison sites take are rising.
The Role of Your Location in Premium Calculation
Now, some people assume their car is a major factor in their insurance premium, but in reality, a bigger part of the cost comes from the potential damage you could cause to others. For example, I once dealt with a guy who had a £150 policy on a small car. He worked at a boatyard that produced luxury yachts, and one day, he decided to weld his petrol tank. His £150 policy ended up paying out over a quarter of a million pounds in damages.
New Threats: Car Part Theft
There are also newer threats, like the rise in car part theft. Catalytic converters are commonly stolen, but now people are even stripping entire front ends or removing engines from parked cars. All these factors contribute to the rising insurance cost, so I don’t expect prices to drop anytime soon. If you’re considering a new car, don’t be discouraged by fears of high insurance costs—just get a quote to find out the actual price. Keep in mind that where you live plays a major role in your insurance cost. Insurers look at local crime rates, traffic, accident rates, and thefts, among other things. All of this data goes into their algorithms to calculate your premium.
Why Insurance Prices Are Increasing
People who have been driving for decades and haven’t had an accident often wonder why their insurance keeps going up. The reality is that everything is getting more expensive, and insurance is no exception. The costs of providing insurance have risen faster than most other things, partly due to poor regulation of comparison site fees and accident management companies. Compensation payouts have also increased, driving costs up even further. I spent 25 years in the insurance industry, and from my experience, the regulators are focusing on the wrong issues. If they addressed some of these problems, we could see insurance prices drop significantly.
Conclusion
I know I’ve rambled a bit here, but hopefully, this article helps you understand the factors that influence your insurance premium and why certain cars might not be as expensive to insure as you thought. For example, would you have guessed that the Skoda Scala is only £3 a year cheaper to insure than the SEAT Ateca, on average? Thanks for sticking with me, and I hope you found this helpful.
