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Which Used Cars are the Cheapest to Insure?

Which Used Cars are the Cheapest to Insure?


With over 1,000 used cars for sale, Swansway Group explore which cars are the cheapest to ensure. Contact us for further information on our range.

What used cars are the cheapest to insure?

Insurance is one of the biggest factors to consider when buying a car. In fact, after that initial purchase, it’s one of the most important outgoings that people have in relation to running a car, with various factors all influencing how much you need to pay out. 

Insurance companies take a variety of factors into account when calculating your insurance costs, from where it is parked at night to how many miles you do each year. Plus, the type of car makes a big impact, with vehicles put into one of 50 different insurance groups. The higher the number, the more it’ll cost to insure. 

What cars are in group 1 insurance?

What cars are in group 2 insurance?

What car are in group 3 insurance?

How can I cut down my insurance costs?

How is insurance group worked out?

A variety of factors influence which insurance group your vehicle falls into. These include:

  • The cost of replacement parts. Insurers use a standardised list of 23 car parts which they compare in order to determine which group a car goes into
  • How much the labour will cost to carry out repairs
  • The car’s as-new price
  • How much performance it has. Higher-powered vehicles will always command higher premiums compared with a more regular version
  • How much standard-fit safety equipment is included
  • What type of anti-theft and security features are included. These go right down to identification numbers 
  • How much it’ll cost to replace the car’s bumpers, as these are usually the first to be damaged in a prang
  • Tests carried out by Thatcham Research look at a car’s safety, security and repair costs

Insurance roll of honour 

You’ll notice a big difference between cars when it comes to insurance costs. These variables even go down to different specifications of the same vehicle - there could be big contrasts despite two cars looking quite the same. 

A number of online tools are available which can show you which group a particular car falls into, such as the one offered at carinsurancegroups.co.uk.

Here, we’re going to take a look at some of the cheapest cars to insure. 

Cars in Group 1

Volkswagen Up!The Volkswagen Up! is a car with compact proportions but happens to feel an awful lot bigger on the inside. Frugal and cheap to run, it’s also a great option for those drivers looking to reduce their fuel bills, while its positioning in Group 1 insurance means that premiums won’t be sky-high, either. 

It’s got Volkswagen’s usual strong attention to build quality, with robust materials ensuring that the Up! can stand up to daily life. 


It’s unsurprising to see the Mii following on from the Up! as underneath the two are identical. The SEAT has a slightly different look, mind you, with a more eye-catching design than its Volkswagen sister car. 

But the similarities mean you get the same great build quality and interior space, plus it’s got a surprisingly grown-up driving style for such a compact car. 

Cars in Group 2

Volkswagen Polo 

The Volkswagen Polo is like the Swiss Army Knife of the car world, appealing to all different types of buyers because of its multitude of benefits. It’s spacious, practical and cheap to run - with insurance costs particularly low too. 

It’s also really easy to drive and is one of the go-to options for drivers who have just passed their test as a result. 

Hyundai i10

Hyundai has a strong reputation for creating low-cost cars that are also solidly built and reliable, with the i10 being a good example of this. It’s very well equipped but doesn’t break the bank, while a well-made interior means that it doesn’t feel basic inside either. 

With efficient engines, it won’t cost the earth to run, but being relatively low on power means that the i10 sits in an insurance-friendly Group 2. 

Cars in Group 3

Fiat 500 

Fiat’s 500 has been a real hit, proving popular with all types of buyers. Its style is something that really shines through, drawing inspiration from the classic 500 and transferring it onto a new and well-packaged platform. 

Plus, it’s great to drive, simple to operate and relatively inexpensive to repair too. This is one of the reasons why it sits within Group 3. 

Peugeot 107

Peugeot’s reputation for creating low-cost small cars is well known and the 107 is a prime example of this. It might lack somewhat in terms of outright refinement, but it makes up for this with low running costs and an easy driving style. 

Plus, it sits within Group 3, so it really won’t cost too much to keep insured. 

How else can I cut down my insurance costs?

Opting for a lower-powered car will nearly always cause your premiums to fall, but there are some other things that do affect how much you’ll be paying for cover. These include:

  • How far you drive each year
  • Whether or not you’re using your car for commuting
  • Where you live
  • Other people classed as named drivers on your policy
  • Any non-factory extras that are fitted to the vehicle 
  • Where the car is parked overnight

Because of this, it’s hard to accurately say just how much you’ll save by picking one of these lower-group cars compared with a car in a higher insurance group. 

But while you’re under 25, you’re likely to be expected to pay quite a bit more than the £436 average annual cost of motor insurance in the UK reported by the Association of British Insurers for the first quarter of 2020.

That said, even if you fall within this ‘risky’ age group, there are some things you can do to reduce how much you pay for insurance. On top of purchasing a car in a low insurance group, these include:

  • Consider taking some advanced driving courses after passing your test
  • Keep claim-free to get your no claims bonus going 
  • Shop around for cover to make sure that you’re getting the best price
  • Think about having a ‘black box’ fitted - most insurance companies will require this from new drivers

With these savings in mind, it’s not out of the question to save a few hundred pounds on your next insurance policy. So what would £200 buy you?

  • A Dyson V7 Trigger handheld vacuum to make sure the cabin of your car is kept clean and tidy
  • A Roberts radio to keep your in-car sounds going in the house as well
  • Two pairs of Nike Free Run trainers to keep you on the move