One of the biggest outlays for a young driver, especially those below 25 years, is car insurance. Based on the most recent RAC Report on Motoring, insurance costs are one of the largest concerns for 44% of drivers aged 17–24. ABI statistics indicate that 9 in every 10 drivers recorded a rise in their premiums during the last year.
A very recommended step towards lowering down the insurance price is by picking up a car in a lower insurance group. The ABI determines these groups, which favour smaller, more affordable cars with lower-powered engines. However, some surprising models also make the list. Where you live, where you park, and all other security measures can also contribute to your premium.
To understand the insurance group of any vehicle, you can find out with a vehicle check. This report will reveal various factors about the car’s past and determine if it has any historical issues.
Check out below to know more about the top 10 cheapest cars to insure if you’re a new driver in 2025 based on the insurance group rating:
1. Hyundai i10
One of the last city cars available, the Hyundai i10 remains a strong choice. The most affordable model for insurance is the 63hp 1.0-liter three-cylinder with an automated manual gearbox, placing it in insurance group 1. However, the manual version, which sits in group 2, offers better performance.
2. Volkswagen Polo
The small car segment, currently dominated by Volkswagen Polo is another one without a Ford offering since the end of the Fiesta. The three-cylinder, 1.0-liter, entry-level engine is in low insurance group under the Life trim, and so does the Polo with its five-star Euro NCAP safety rating.
3. Skoda Fabia
For those who are a bit too high on their means, Skoda has its Fabia on offer, the same 80hp unit with similar driving manners. Inside and out, Fabia is in group 4 for insurance. Practical and roomy inside.
4. Kia Picanto
The Kia Picanto is another fashion alternative to the Hyundai i10, and relatively inexpensive to insure as well. In its base ‘2’ trim, manual and auto versions fall into group 4. Kia’s industry-leading seven-year warranty is another plus.
5. Toyota Aygo X
The Toyota Aygo X maintains its city car practicality despite looking like an SUV. The most affordable model to insure is the entry Pure trim, which still carries adaptive cruise control and a reversing camera.
6. Volkswagen Caddy MPV
Astonishingly, the van-based MPV makes this list. Featuring a roomy interior, good ride comfort, and a top rating for safety, the Caddy is the ideal choice. A low insurance group is available on the standard version with a 115hp 1.5 TSI petrol engine.
7. Fiat 500
It’s popular in the retro-styled 500 guise. It might not be the newest when it comes to styling or safety, but a mild-hybrid 1.0-litre engine is low on running costs.
8. Dacia Sandero
Although no longer the cheapest new car, the Dacia Sandero offers tremendous value and comes with a 90hp turbocharged engine, giving it a two-star Euro NCAP rating affecting its insurance group.
9. Renault Clio
Despite sitting on the same stage as the Sandero, the Clio enjoys a five-star safety rating. It is very well-equipped, stylish, and has low insurance costs.
10. SEAT Arona
This is a rare SUV on this list, and surprisingly, it’s cheaper to insure than the related Ibiza hatchback. A good balance between performance and affordability is offered by the entry-level SE Edition with a 1.0 TSI engine.
Providing the right vehicle can actually bring down the insurance quotes of young drivers significantly, while ensuring they get a reliable and secure ride.
