Cheapest Cars to Insure for New Drivers UK: Insurance Groups 1-5 (2026)

Key takeaway: New drivers pay some of the highest car insurance premiums in the UK. Choosing a car in insurance groups 1 to 5 can cut that by £500 to £1,000 compared to a Group 15 to 20 car. The cheapest options are the Volkswagen Up, Skoda Citigo, Citroen C1 and Toyota Aygo, all in Group 1 to 2.

Insurance is the single biggest running cost for new drivers, often exceeding the purchase price of the car itself. A 17-year-old paying £2,400 per year on a £2,000 car will spend more on insurance than the car is worth in the first year alone. The car you choose has a massive impact on this cost.

This guide covers the cheapest cars to insure for new drivers, explains how insurance groups work for young drivers specifically, and shares strategies that can genuinely save £500+ per year. Every car mentioned can be checked using our free car cost tool to see the full running cost picture.

Why Insurance Is So Expensive for New Drivers

Before looking at cars, it helps to understand why new driver premiums are so high. Insurers price based on risk, and the statistics are not in young drivers' favour:

• Accident rates: Young drivers, especially those aged 17 to 19, are far more likely to be involved in a serious or fatal collision than drivers in their late twenties.
• No claims history: New drivers have zero no-claims bonus (NCB). Five years of NCB can reduce a premium by 60% or more.
• Experience: Newly qualified drivers have passed a test but have limited real-world experience, particularly in challenging conditions like motorways at night or heavy rain.
• Claim costs: Young drivers tend to have more expensive claims because they are more likely to write off the vehicle entirely.

The insurance group of your car is the one factor you can control before you buy. Everything else (age, experience, no-claims) takes time.

Insurance Groups 1 to 5: The Best Cars for New Drivers

Group 2

Car	Engine	Real MPG	Used Price (2019-2022)	New Driver Premium Est.
Toyota Aygo 1.0	1.0L 72PS	55-62	£5,500-£9,000	£1,500-£2,000
Peugeot 108 1.0	1.0L 68PS	54-60	£4,500-£7,500	£1,500-£2,000
Hyundai i10 1.0	1.0L 67PS	52-58	£5,000-£8,500	£1,500-£2,100

Groups 3 to 5

Car	Group	Engine	Real MPG	Used Price	New Driver Premium Est.
Ford Ka+ 1.2	3	1.2L 70PS	46-54	£4,000-£6,500	£1,600-£2,200
Kia Picanto 1.0	3	1.0L 67PS	53-60	£5,500-£8,000	£1,600-£2,200
Suzuki Celerio 1.0	3	1.0L 68PS	58-65	£4,500-£7,000	£1,600-£2,200
Vauxhall Corsa 1.2 (pre-2020)	3-4	1.2L 75PS	44-52	£5,000-£8,500	£1,700-£2,300
Dacia Sandero 1.0 SCe	4	1.0L 73PS	42-48	£5,000-£7,500	£1,700-£2,300
SEAT Ibiza 1.0 MPI	5	1.0L 80PS	48-55	£6,000-£9,000	£1,800-£2,400
Renault Clio 0.9 TCe	5	0.9L 90PS	48-56	£5,500-£8,500	£1,800-£2,400
Nissan Micra 1.0 IG-T	5	1.0L 92PS	46-54	£6,000-£9,500	£1,800-£2,500

Before buying any of these cars, enter the registration number to check the specific car's MOT history, mileage, and running costs. Two identical models can have very different histories.

Cars New Drivers Should Avoid

Some cars look affordable but have insurance groups that will destroy your budget:

Car	Ins. Group	New Driver Premium Est.	Why It Costs More
Volkswagen Polo 1.4 TSI	12-15	£2,600-£3,500	Turbocharged, higher performance
Ford Fiesta 1.0 EcoBoost 140PS	13-16	£2,700-£3,600	High power output for engine size
BMW 1 Series 118i	14-18	£3,000-£4,000	Premium brand, expensive parts
Audi A1 1.4 TFSI	15-19	£3,200-£4,200	Premium brand, turbocharged
Mini Cooper 1.5	11-15	£2,500-£3,400	Expensive parts, theft target

The difference between a Group 1 car and a Group 15 car can be £1,000 to £1,500 per year for a new driver. Over three years, that is £3,000 to £4,500, which is often more than the car itself costs.

10 Ways to Cut Your Insurance as a New Driver

1. Choose a Group 1 to 5 car. This is the single most impactful decision. It is worth buying a slightly less exciting car to save £1,000+ per year.
2. Get a black box (telematics) policy. Telematics policies can reduce premiums by 20% to 40% for safe drivers. You agree to have your driving monitored via a device or app, and good driving habits are rewarded.
3. Add a named driver. Adding an experienced parent or partner as a named driver (not the main driver) can reduce your premium by 10% to 20%. This is legal and different from "fronting."
4. Pay annually. Monthly payments add 15% to 30% in interest charges. If you can save up and pay the full year upfront, you will save £200 to £500.
5. Increase your voluntary excess. Raising your voluntary excess from £0 to £400 can cut your premium by 10% to 15%. Only do this if you could genuinely afford to pay it in a claim.
6. Park off-street. A private driveway or locked garage is safer than on-street parking. Insurers reflect this in the price.
7. Limit your mileage. Declaring 5,000 miles per year instead of 10,000 can save 5% to 10%. Be honest with your estimate.
8. Consider Pass Plus. Some insurers offer discounts for Pass Plus certification, though the benefit has reduced in recent years. Check with your insurer before paying for the course.
9. Compare at least 5 providers. Use comparison sites, but also get quotes direct from insurers, as not every insurer or policy appears on every comparison site.
10. Check the full costs before buying. Insurance is just one piece. Use our free car check tool to see road tax, fuel costs, MOT history and predicted repairs for any specific car. Our £2.99 valuation adds our estimated insurance group.

Black Box Insurance: Is It Worth It?

For most new drivers, the answer is yes. Telematics policies from providers like Marmalade, ingenie, and Veygo can save 20% to 40% on your premium, which for a new driver means £400 to £900 in savings. The trade-offs:

• Driving is monitored: Speed, braking, cornering, and time of driving are all tracked. Driving between 11pm and 5am typically counts against you.
• Penalties for bad driving: Some policies will increase your premium or even cancel your policy if you consistently score poorly.
• Privacy: Your location and driving habits are recorded. Some people are uncomfortable with this.

If you are a careful driver who does not regularly drive late at night, a black box policy is one of the most effective ways to keep costs down in your first few years of driving.

First Year vs Second Year: How Premiums Change

The good news is that insurance costs drop significantly after your first year, provided you do not make a claim. Here is a typical trajectory for a Group 1 car:

Year	NCB	Estimated Premium (Group 1)
Year 1 (age 17-18)	0 years	£1,400-£2,000
Year 2 (age 18-19)	1 year	£1,100-£1,600
Year 3 (age 19-20)	2 years	£800-£1,200
Year 4 (age 20-21)	3 years	£600-£900
Year 5 (age 21-22)	4 years	£450-£700

After four to five claim-free years, premiums typically drop to a level comparable to the average UK driver. The first two years are the expensive ones, which is why keeping costs low during that period matters so much.

The Bottom Line

If you are a new driver, choose a car in insurance groups 1 to 5 with a 1.0L or 1.2L engine. The VW Up, Skoda Citigo, Citroen C1 and Toyota Aygo are the best options for combining low insurance with low overall running costs. Add a black box policy, a named driver, and pay annually to maximise your savings.

Before committing to any car, check it with our free tool. Enter the registration number to see the MOT history, mileage verification, and predicted annual running costs. It takes 10 seconds and can save you hundreds per year.