Cheapest Insurance Group Cars: 7 Budget-Friendly Picks
Looking to cut your annual premium without driving something dull? Good news: low insurance group cars (Groups 1–10) can keep costs in check while still giving you style, tech, and everyday comfort. In the UK, Thatcham Research sorts cars into 50 insurance groups. The lower the group, the lower the likely premium. If you want cheap car insurance, affordable cars with smaller engines, strong safety ratings, and sensible repair costs.
In this guide, we’ll spotlight 7 low insurance group cars, share their group rating, and explain why each one is a clever pick for cost-conscious drivers. Expect practical tips, real-world benefits, and a dash of fun.
Here’s what you need to know: Low insurance group cars, specifically in groups 1 to 7, can meaningfully lower premiums. Cars with smaller engines, good safety tech, and easy-to-source parts make this possible. The best part? You don’t have to sacrifice comfort or tech to keep costs down.
How Insurance Groups Work (Quick and Useful)
Insurers consider several factors, including purchase price and repair costs, performance and engine size, safety features and security systems, as well as parts availability and theft risk. Thatcham’s insurance groups run from 1 (cheapest to insure) to 50 (most expensive). If you’re hunting for cheap car insurance, start your search in groups 1 to 7 and always check the exact trim and engine, as one model can span multiple groups.
1–7 Stars: Our Top Picks
Below you’ll find cars in groups 1 to 7, with a spotlight on key features, recommended trim or engine, and reasons why each shines for drivers after affordable cars and low running costs.
Volkswagen Polo (Group 1)
Perfect for urban drivers who want quality and comfort on a budget, especially with the 1.0-litre EVO SE specification. The Polo blends small-car agility with big-car polish. It’s light, efficient, easy to drive and park, and gives you the safety and comfort Volkswagen is known for. These attributes help secure it a very low insurance group and support its popularity among budget-conscious drivers. If you want a low insurance group car that doesn’t feel basic, the Polo is an excellent option.
Hyundai i10 (Group 4, some 1.0 MPi versions group 3)
An excellent choice for city living, with more space than it appears from the outside. The 1.0 MPi SE Connect trim often falls into group 3. The i10 shows that small doesn’t mean cramped—you can bring four friends along and still easily park anywhere. Its great visibility and light controls make it ideal for new drivers. Certain trims are in very low insurance groups, making this a smart way to secure cheap car insurance and keep practicality high.
SEAT Ibiza (Group 2)
One of the best superminis for those who want fun without high insurance expenses. The 1.0 TSI 95 SE trim offers the lowest insurance cost. With excellent handling, strong grip, and great body control, the Ibiza remains comfortable across bumpy roads. Inside, you get an 8.25-inch colour touchscreen to keep things modern. This is an ideal option for affordable car insurance without giving up driving enjoyment.
Skoda Fabia (Group 8)
The Fabia is perfect if you want space and refinement at a keen price. The 1.0 TSI SE version pairs a smooth, quiet engine with spacious interiors. It’s the VW Polo’s roomier cousin, offering a grown-up feel on longer journeys. Lower-spec trims ensure low insurance group placement and affordable running costs, all while delivering big-car calm in a compact package.
Vauxhall Corsa (Group 3)
A staple for both new and experienced UK drivers, particularly with the 1.2 Turbo SRi Premium trim. The Corsa keeps costs low by offering practical kit such as cruise control, parking sensors, and air conditioning. It’s a mainstream favourite, and abundant spare parts and reasonable repair costs help keep insurance quotes low. This is a well-rounded choice for those who value affordability in every aspect.
Fiat 500 (Group 6)
A stylish city car with the 1.0 Hybrid model standing out for affordability. The Fiat 500 is popular among young drivers for its iconic retro looks and cheap running costs. The mild-hybrid system boosts fuel economy, while the compact size makes city driving and parking a breeze. The interior keeps its funky appeal, making this a city-friendly, affordable insurance pick. Tall drivers may find the cabin a bit tight, so be sure to try it first.
Renault Clio (Group 3)
A favourite starter car and an excellent value choice, especially with the 1.0 SCe 65 Play variant. The Clio keeps premiums low thanks to its modest engine and ample safety features, including Hill Start Assist and cruise control. The base model also provides a 7-inch touchscreen, making it comfortable and user-friendly for drivers seeking low insurance.
How to Keep Your Insurance Costs Low (Beyond the Car You Choose)
Selecting a low insurance group car is just the first step. There are extra strategies to help keep your premium low. Compare quotes regularly by checking multiple comparison sites and direct insurers. Choosing the right trim with a smaller engine and fewer sporty extras often results in more affordable premiums. Additional factory security like alarms, immobilisers, and parking safely (in a garage or on a driveway) can lower your risk profile. You can sometimes get better rates by adding an experienced named driver, keeping annual mileage reasonable, and building your no-claims discount. Paying your premium annually helps avoid finance charges. For new drivers, a telematics or “black box” policy can reward careful driving with even lower rates.
Who Should Pick a Low Insurance Group Car?
Low insurance group cars are especially useful for new drivers, since lower groups reduce those pricey first-year premiums. City commuters benefit from small, efficient cars that cut fuel, parking, and insurance costs. Budget-conscious families will find compact SUVs in the lower groups offer plenty of space without big bills, and those who lease cars can make their monthly costs much more predictable by picking wisely.
Frequently Asked Questions
How much can you save with a low insurance group car? While exact numbers vary depending on age, location, driving history, and annual mileage, you’ll nearly always see lower premiums compared to similar cars in higher groups.
Are all versions of a model in the same group? No—items like engine size, wheels, and safety equipment all play a part. Always double-check your exact trim level and engine code before making a choice.
Does safety technology really bring premiums down? Generally, yes. Features like autonomous emergency braking, lane assist, and robust crash protection typically help insurers view a car as lower risk.
Is it ever possible that a higher group could result in a cheaper quote for you? Rarely, but occasionally your personal factors and the insurer’s criteria can override the usual rankings—so always shop around and get your numbers in writing.
The Bottom Line
If you want cheap car insurance without giving up comfort, tech, or personality, start your search with these low insurance group cars. For the tightest budgets, models in groups 1 to 4 like the Volkswagen Polo, SEAT Ibiza, Vauxhall Corsa, Renault Clio, Kia Picanto, and Hyundai i10 should top your list. For more space, look at affordable low group models such as the Renault Captur, Skoda Fabia, and Ford Fiesta. And if style is at the top of your list, the Fiat 500 is a city icon with good insurance credentials.
Pick the right trim, choose an engine that isn’t too powerful, and use common sense insurance savings tips. You’ll enjoy an affordable car that’s cheap to insure and easy to love.
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