Currently reading: Top 10 cheapest new cars to insure 2024
From Dacia to Toyota, this is our guide to the most affordable new cars to insure in the UK

Car insurance is as expensive as it’s ever been, with premiums surging to an average of £924 per year, according to data from comparison site Thankfully, there is still a wide variety of cars that come in substantially below that – as our guide to the 10 cheapest new cars to insure in 2024 shows.

Each quote is based on a 35-year-old male who lives in Swindon and works as a teacher. He commutes by car, parking it on the street during the day and in residential space overnight, and he drives 8000 miles per year. He has no points on his licence and a full 18 years of no-claims bonus.

Top 10 cheapest new cars to insure in the UK

1. Fiat Panda 1.0 Mild Hybrid (manual)

Blue 2012 Fiat Panda front quarter tracking

Annual insurance premium £474.77 Insurance group 8 List price £14,740

The cheapest new car to insure in the UK is the venerable Fiat Panda. The current model has been on sale for more than a decade, so isn’t quite up to the standard set by rivals like the Hyundai i10. Its analogue nature might appeal to some, however, and the low list price makes it a tad more compelling. If you do want a new Panda, you’ll have to move quickly. Production is set to end in the coming months, to make room for an all-new electric model.

Fiat Panda review

2. Toyota Aygo X 1.0 VVT-i Pure (manual)

Red 2022 Toyota Aygo X front quarter tracking

Annual insurance premium £480.32 Insurance group 5 List price £15,990

The Toyota Aygo X is a solid city car, offering a playful interior, great ergonomics and a sophisticated chassis. It is on the expensive side given its small stature, though, and the 71bhp three-pot engine is almost rather wheezy. We found it dispatched 0-62mph in a ponderous 16.7sec, for instance. 

Toyota Aygo X review

3. Hyundai i10 1.0 Premium [Nav] (automatic)

Silver 2022 Hyundai i10 front quarter cornering

Annual insurance premium £510.18 Insurance group 1 List price £18,170

One of the best new city cars you can buy, thanks to assured handling and a roomy interior with more technology than many rivals. You’ll have to opt for the underwhelming 66bhp three-pot engine to keep insurance costs down, though. 

Hyundai i10 review

4. Fiat 500 1.0 Mild Hybrid (manual)

Blue 2017 Fiat 500 front cornering

Annual insurance premium £521.18 Insurance group 10 List price £16,790

Effectively a Panda in a fashionable dress, offered with the same four-seat layout and 1.0-litre mild-hybrid petrol engine. It’s good fun to drive around town thanks to light steering and the rev-happy nature of its engine. That said, it’s also got a lumpy ride and cramped cabin, and it isn’t as refined as alternatives like the Volkswagen Up, so it isn’t the best long-distance option. As with the Panda, you’ll need to move quickly if you want a new petrol 500.


Read our review

Car review

A very fine multi-use little car that offers an enticing ownership proposition

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Fiat 500 review

5. Kia Picanto 1.0 2 (automatic)

Red 2021 Kia Picanto front cornering

Annual insurance premium £527.51 Insurance group 1 List price £15,120

The Picanto feels slightly more dated inside than its Hyundai i10 sibling, but it’s also significantly cheaper to buy. It’s both comfortable and surprisingly good to drive, with a sense of agility seldom found in cars so cheap. Although the automatic gearbox brings insurance down, it does make the Picanto’s acceleration lethargic, so we’d recommend the manual instead. Besides, the £705 you save by opting for the manual more than offsets the cost it adds to the insurance premium.

Kia Picanto review

6. Dacia Sandero 1.0 TCe 90 Essential (manual)

Blue 2023 Dacia Sandero front cornering

Annual insurance premium £528.11 Insurance group 10 List price £13,795

Our favourite budget-friendly car for 2024 isn’t just the best-value car on sale right now, but also one of the best superminis outright. It’s as well built as any of its rivals, and it’s also a comfortable, fuel-efficient cruiser as well. That insurance is incredibly cheap only reinforces the case for the Sandero.

Dacia Sandero review

7. Seat Arona 1.0 TSI 95 SE (manual)

Black 2022 Seat Arona front quarter tracking

Annual insurance premium £529.91 Insurance group 8 List price £22,450

A former class leader and still a solid option if you’re in the market for a trendy crossover. Its interior looks and feels modern, although entry-level SE cars get only an 8.25in infotainment touchscreen. You might want to consider the step up to SE Technology, given it ups the screen size to 9.0in and adds a sat-nav system plus rear parking sensors – without increasing the cost of insurance.

Seat Arona review

8. MG 3 Excite 1.5 VTI-Tech (manual)

Red 2020 MG3 front quarter tracking

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Annual insurance premium £529.38 Insurance group 7 List price £13,820

The MG 3 offers plenty of kit for the money asked, but that’s because it’s a decade-old supermini – and one that’s well off the pace dynamically. Its hard ride means you pogo your way down the road, and lots of wind and road roar make it into the interior. Unless the tech or seven-year warranty are must-haves, you can do much better by spending a little more cash. A next-generation model is set to arrive next year, bringing with it a hybrid powertrain.

MG 3 review

9. Dacia Sandero Stepway 1.0 TCe 90 Essential (manual)

Orange Dacia Sandero Stepway side tracking

Annual insurance premium £547.36 Insurance group 10 List price £15,295

A Sandero on stilts. The only real differences compared with the regular model are the boost in ride height and more rugged styling. That extra height does bring easier access and a slightly more commanding driving position, but whether that is worth an extra £1500 over the regular version will ultimately depend on your priorities.

Dacia Sandero Stepway review

10. Seat Ibiza 1.0 TSI 95 SE (manual)

Red 2022 Seat Ibiza front quarter cornering

Annual insurance premium £565.17 Insurance group 8 List price £19,715

The Ibiza remains a great choice six years after it was first introduced, thanks to its well-finished interior, responsive turbocharged engine and balanced chassis. The steering is overly light, but that’s the Ibiza’s only major failing.

Seat Ibiza review

Charlie Martin

Charlie Martin Autocar
Title: Editorial Assistant, Autocar

As a reporter, Charlie plays a key role in setting the news agenda for the automotive industry. He joined Autocar in July 2022 after a nine-month stint as an apprentice with sister publication, What Car?. He's previously contributed to The Intercooler, and placed second in Hagerty’s 2019 Young Writer competition with a feature on the MG Metro 6R4

He is the proud owner of a Fiat Panda 100HP, and hopes to one day add a lightweight sports car like an Alpine A110 or a Lotus Elise S1 to his collection.

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Add a comment…
LP in Brighton 1 November 2023

Agreed, this makes no sense. Surely all things being equal there should be a direct correlation between the Group Rating and cost to insure? Otherwise why bother with the rating. This "guide effectively tells us there is no significant difference between any of the cars listed,

si73 1 November 2023
Your job, if you can find it from the limited list on insurance company website drop down menus, makes a big difference for quotes, I have before had at least two choices that were close to my job, if not exact, so I chose the cheaper one.
Also looking at the insurance groups shows what a nonsense the whole thing is, the picanto is a lower group and cheaper to buy than the 500 yet costs more, surely the lower value and insurance group should make it cheaper, same for the MG, a lower group and cost than the 500 and panda, yet more expensive to insure. What's the point of the groupings? They serve no purpose when a group 1 car is more expensive than a group 10.