Just passed your driving test and looking for a new car? These are the cheapest cars to insure for new drivers.
From the high of passing your test to then finding out the cost of car insurance can be a depressing experience. Don't worry though as there are some great cars out there perfect for new drivers looking keep insurance premiums in check.
We've looked through the cars in insurances groups 1, 2 and 3 to not only pick out what we think are the cheapest cars to insure for new drivers, but also some of the best city cars going. If you've just turned 17, you might want to check out our guide to the cheapest cars to insure for 17 year olds.
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Cheapest cars to insure for new drivers 2024
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1. Volkswagen Polo
Insurance group 1
The Volkswagen is one of, if not the absolute best small hatchback on the market, with an nigh-on perfect blend of practicality, comfort, quality and driving finesse. Sure, it's pricier than some of its rivals, but opt for a 1.0-litre model and you could save a bundle on car insurance.
There have been a range of trim levels in recent years that slot into insurance group 1 – the lowest group – so keep an eye out for S, SE, SE Tech, Beats, Match, United and Active.
Not every 1.0-litre model in those trims is group 1 (although none are exactly high up the groupings), so double check the exact model you're looking at. You'll likely be considering cars with 65, 75 or 80PS and with a manual gearbox, which will be enough to zip you around town without any problems.
2. Hyundai i10
Insurance group 3
We're big fans of the little Hyundai i10. It might not rival some of the others here in the looks department, but it's a great little car that's perfect for the new driver.
Aside from the fact that it's great value, there's plenty else to attract those that have recently passed their test. The interior finish is a notch above most cars in this price bracket, with stuff like Apple CarPlay and Android Auto is included on SE Connect models and above. It's not bad for space too, with a good amount of room upfront and a good-sized boot for a city car.
Handling is also on point for a car in this class, making it a really cheerful little car to drive. You'll have to plump for the lower powered 66PS 1.0-litre petrol engine if you want to keep insurance down, but despite it's pretty sedentary acceleration time, it's calm and composed on the motorway.
3. SEAT Arona
Insurance group 8
You might not expect an SUV to fall into a cheap insurance group, but the SEAT Arona shows that it's possible. You can get a great value-for-money compact SUV that sits in an insurance group as low as 8. OK, that's a touch higher than some of the other cars on this list, but if you're sold by the SUV revolution and want that high, commanding view of the road then this a great option.
The get the cheapest insurance, you'll want to look out for a 1.0-litre TSI model in SE or SE Technology trim and with a manual gearbox. Some might trip over into group 9, but the group 8s are out there. For that, you'll get great fuel economy to add to your financial savings, and a car that's great fun to drive.
4. SEAT Ibiza
Insurance group 3
It's no surprise to hear that the SEAT Ibiza is based on one of Volkswagen's platforms, in this case the brilliant Volkswagen Polo.
While the Polo is that bit more polished than its Spanish counterpart, the Ibiza makes our list as it's that bit more affordable and has a little more flare in the styling stakes. Don't think you're going to get a cabin with a load of scratchy plastics either as the Ibiza shares many parts with the Polo. There's also plenty of space for four adults and huge boot (for its class) make it very practical as well.
There's a range of great petrol engines available for the Ibiza, but you'll want the 1.0-litre MPI unit with 80PS for insurance group 3. Track down a used pre-2018 model with 75PS and you drop down an insurance group for even lower premiums. In a nutshell the SEAT Ibiza a cost-effective hatchback with plenty of flair.
5. Skoda Fabia
Insurance group 4
Just like the SEAT Ibiza, the Skoda Fabia is based on the same VW Group platform as the Polo. It might lack the flare of the Ibiza and the brand appeal of the Volkswagen Polo, but the Fabia does a lot things very well indeed.
Comfortable and practical, the Fabia also comes with plenty of clever little touches, including large bottle holders, a parking ticket holder and an ice scraper tucked away in the fuel filler flap. Simple little things, but they all make life a little easier.
Plump for the entry-level SE Comfort spec and you're looking at insurance group 4 with the 80PS, 1.0-litre MPI petrol engine. Look for an older model and you might find one in an even lower insurance group – S and SE models with the slightly less powerful 75PS engine fitted into group 3.
6. Toyota Yaris
Insurance group 3
While the Toyota GR Yaris might have captured the headlines recently, hot hatches and performance cars are unlikely to be on the cards for most newly qualified drivers. The good news though is that the latest Yaris has borrowed elements of the GR Yaris in its design, with a bold grille, purposeful curves and sharp edges to make it a much more appealing car than earlier models.
The interior is also very good, with Apple CarPlay and Android Auto as standard, while a digital dashboard is on the standard spec list on most trim levels. That said, cabin space is a little compromised, with less space in the back and boot compared to rivals.
The latest model though has seen premiums jump up quite a bit, so if you want a Yaris that falls into group 3 or 4 insurance, you'll need to take a look at the Toyota Yaris 2011-2020 with the 1.0-litre petrol engine.
7. Ford Fiesta
Insurance group 2
The Ford Fiesta needs little introduction and has been a first car for many a new motorist. It's easy to see why, too. The Fiesta ticks an awful lot of boxes and makes it a great pick as a cheap car to insure for new drivers.
While it's not the most striking design, the refined and confident looks of the Fiesta are just a hint at this latest (and last) model's more mature approach, feeling more grown up than many rivals. Inside you're welcomed by a comfy, well-made interior that comes with a large infotainment screen. What's really nice to see is that even entry-level models get Apple CarPlay and Android Auto as standard.
It's also great fun to drive, and while there are a range of trim levels and engines to choose from, you'll want to go with the 1.1-litre petrol engine that produces 75PS for the cheapest insurance.
8. Renault Clio
Insurance group 3
The latest Renault Clio has been with us since 2019 but was given a facelift for 2024 and now ranks as one of the smartest hatchbacks on the road. It's available with a range of trims and power options, but sadly for new drivers, the newest model bumps up the insurance prices by quite a bit.
Better then to look for a used model, where cars with Renault's 1.0-litre SCe petrol engine were available with insurance groups as low as 3. Look for cars with either the SCe 65 or SCe 75 engine, in Play or Iconic trims, and you'll reap the rewards in premium savings. Sure, you won't get the latest snazzy look, but the pre-facelift Clio was a very decent-looking car, too. And you still get a comfortable hatchback with plenty of interior space that drives very nicely and is filled with useful tech. Lovely.
9. Dacia Sandero
Insurance group 4
We couldn't have a top 10 of the cheapest cars to insure for new drivers without featuring a Dacia. Compared to rivals like the Ford Fiesta, the Dacia Sandero is incredibly cheap - it starts at just £13,795 new.
So after from being dirt cheap, what else has the Sandero got going for it? Well, it's very practical, with space in the cabin for four tall adults and a decent boot. It's in the cabin that the biggest cost-cutting is visible though, with some pretty hard plastics adorning the interior.
Pick the Essential model, which comes with some advanced tech like a DAB radio and manual air conditioning, with the 1.0-litre SCe engine and you'll get a car that slots into insurance group 4. However, get a used Dacia Sandero 2013-2021 model and you're looking at insurance starting in group 2.
10. Fiat Panda
Insurance group 3
You might be surprised to see the Panda here ahead of its more popular Fiat 500 sibling, but thanks to its lower insurance premiums it nudges out the more stylish 500.
Let's address the elephant in the room first. In the Euro NCAP crash tests the Panda doesn't even score a single star in the five-star rating system. That's not quite the claim to fame a car wants to be known for, so it's certainly something to bear in mind.
Look beyond that though and with its fun-yet-comfortable driving dynamics and a distinctive (yet simple) interior and the Fiat Panda is a great first car for new drivers. Pick one in basic Pop trim with a 1.2-litre petrol engine and you're looking at group 3 insurance.
Cheap Car Insurance FAQs
It unfortunately comes down to experience. Insurers see new and young drivers as a higher risk, raising the chances of them being involved in a road accident. The knock on affect is that this means they're more likely to make a claim on their insurance policy.
Insurance premiums for new drivers can be eye wateringly expensive, but there are some things you can do to reduce costs. These include limiting your mileage, paying annually and finding somewhere safe to park the car overnight.
These black boxes record and monitor how you're driving. By keeping an eye on your driving habits an insurer can reduce your insurance premium as a reward for driving safely.
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