Guides | Cheapest Cars To Insure in 2021

Cheapest Cars To Insure in 2021

On this page, we list the ten cheapest cars for UK drivers based on insurance costs and include their other key expenses, such as the price of buying them second-hand.

Save on your vehicle costs by finding the cheapest car to insure for yourself or your business

Car insurance prices vary wildly between cars and picking the right motor can save you hundreds of pounds a year. 

We list the cheapest cars to insure right now, along with some of the important associated financial considerations, such as MPG, average used price and the Benefit in Kind (BIK) rate. 

We also tell you where you can get the best fleet insurance quote for your business, so you can manage all the key costs of operating a company car.

Please note that real-life car insurance costs are dependent on a range of factors, such as your typical mileage, personal claims history and the address your motor is registered at. To insure cars for business use, insurance costs will also take into account  your job and how the car will be used. 

With this in mind, we advise that the insurance cost figures we’ve given below are based on a 30-year-old driver who lives in an average (based on house prices) postcode. 

This means you personally may pay less or more than the figures quoted to insure these cars for your own use, but the ranking in our list will be the same for you.

Hyundai i10

The Hyundai logo is displayed but you should look beyond the brand when you buy a motor and think about how it fares with car insurance groups

Credit: Flickr

Average insurance cost: £556

Average used car price: £2,455

The Hyundai i10 beats off seriously strong competition (three other motors can be insured for the same price) to be crowned our winner of the cheapest car to insure at the moment. 

With so many great motors available to insure for £556, we had to find a way of separating the very best from the rest. We looked beyond the features available (like rear parking sensors) to consider which car has the full package of cheap running costs for you. 

The Hyundai i10 1.0 S Air 5d is cheap to buy, costs almost nothing to tax and has a very low BIK rate. It’s the total package and a car that’s perfect for anyone who wants to cut insurance costs without sacrificing any of the quality they expect in their car. 

Fuel economy by MPG: 60

BIK rate: £37 – £40 per month (basic rate); £75 – £80 per month (basic rate) 

Annual cost of road tax: £20 

Insurance group: 1

Volkswagen Polo

The Volkswagen logo is displayed but you should look beyond the brand when you buy a motor and see if you can get cheap car insurance for the model you like

Credit: Pikrepo

Average insurance cost: £556

Average used price: From £7,435

The iconic Volkswagen Polo is the joint-cheapest car to insure right now, making it the perfect choice for professionals or private owners. We’ve used the Polo S 1.0 65PS 5d to get our figures. 

The Polo is also renowned for its durability, with its VW engine one of the most resilient you can buy.

Fuel economy by MPG: 60

BIK rate: £59 – £61 per month (basic rate); £118 – £122 per month (basic rate) 

Annual cost of road tax: £155

Insurance group: 1

Volkswagen Up

The Volkswagen logo is displayed but you should look beyond the brand when you buy a motor and compare car insurance quotes for the model you like

Credit: Pixabay

Average insurance cost: £556

Average used price: From £1,835

Volkswagen shows it’s the brand to buy if you want to control costs, with its Up 1.0 Take Up 3d model tying with the Polo for the lowest annual car insurance premium you can get. 

Roominess is another great reason to invest in a Volkswagen Up, with the 1.0 Take Up 3d providing enough room for people well over 6 feet tall to sit comfortably. 

Fuel economy by MPG: 48

BIK rate: £33 – £37 per month (basic rate); £66 – £74 per month (basic rate) 

Annual cost of road tax: £20

Insurance group: 1

Skoda Citigo

The Skoda logo is displayed but you should look beyond the brand when you buy a car and also look for a low insurance group to cover it

Credit: Pixabay

Average insurance cost: £556

Average used price: From £1,815

It’s been a long time since Skoda overcame its reputation for making second-rate motors that you’d never drive during work or personal time. 

Now Skoda is one of the best brands for people seeking value for money and the Citigo 1.0 MPI SE 3d is the perfect example of this, with its average annual insurance charge of £556 an absolute bargain. 

Fuel economy by MPG: 41

BIK rate: £34 – £37 per month (basic rate); £68 – £75 per month (basic rate) 

Annual cost of road tax: £20 – £155

Insurance group: 1

Kia Rio

A Kia logo

Credit: Flickr

Average insurance cost: £582

Average used price: £6,570

If you’re a cash conscious driver who just wants a car that gets the basics right then you’ll adore the Kia Rio 2 1.4 CRDi 76bhp ISG 5d. 

The Kia Rio 2 1.4 CRDi 76bhp ISG 5d isn’t flashy but it’s a solid drive with a practical interior and can be insured for less than £600 a year. 

Fuel economy by MPG: 42

BIK rate: £66 – £67 per month (basic rate); £132 – £135 per month (basic rate) 

Annual cost of road tax: £0 – £155

Insurance group: 2

Ford Fiesta

A Ford logo

Credit: Pexels

Average insurance cost: £582

Average used price: £6,515

There’s a good reason you know at least one person who drives a Ford Fiesta. The UK’s best selling motor is fantastic value for money, including its insurance premiums. 

You should hope to pay a little over £580 a year for a Ford Fiesta Style 1.1 Ti-VCT 70PS 5d if you are an average driver. When you consider its competitive price and how easy it is to purchase parts (such as for the air conditioning), you have a car that’s a superb investment throughout your ownership. 

Fuel economy by MPG: 49

BIK rate: £59 – £65 per month (basic rate); £119 – £130 per month (basic rate) 

Annual cost of road tax: £155

Insurance group: 2

Renault Clio

A Renault logo

Credit: PXHere

Average insurance cost: £607

Average used price: £4,135

The Renault Clio has been one of the most popular cars with UK drivers for over 30 years. It has an understated style, offers a smooth drive and can be insured very cheaply. 

We’ve highlighted the Renault Clio Play 1.2 16V 75 5d because its small size makes it ideal for professionals who do a lot of city driving and struggle for parking spaces. 

Fuel economy by MPG: 51

BIK rate: £61 – £61 per month (basic rate); £122 – £122 per month (basic rate) 

Annual cost of road tax: £130

Insurance group: 4

Skoda Fabia

A Skoda logo

Credit: Pixnio

Average insurance cost: £607

Average used price: £3,950

The second Skoda to feature in our list of cheapest cars to insure is the well-known Fabia. It’s a supermini whose fourth generation was released in 2021 and that receives a four-star adult safety rating from Euro NCAP. 

We think the Skoda Fabia 1.0 MPI SE 5d offers the best insurance value, as you can cover this car for around £607 a year. 

Fuel economy by MPG: 53

BIK rate: £55 – £58 per month (basic rate); £110 – £116 per month (basic rate) 

Annual cost of road tax: £20 – £155

Insurance group: 3

SEAT Ibiza

A SEAT logo

Credit: Wallpaper Flare

Average insurance cost: £653

Average used price: £11,410

An automotive veteran, the SEAT Ibiza has been a great choice for families, professionals and single driver households since 1984. 

While there are many great models available, the Seat Ibiza FR Sport 1.0 MPI 80PS 5d has the dual benefit of being both sporty and economical — you get an impressively nippy motor and it has cheaper car insurance premiums than most superminis. 

Fuel economy by MPG: 47.1

BIK rate: £75 – £80 (basic rate); £150 – £161 per month (basic rate) 

Annual cost of road tax: £155

Insurance group: 4

Citroen C1

A Citroen logo

Credit: PXHere

Average insurance cost: £2,335

Average used price: £672

Looking for a car that’s reasonably priced, has great handling and won’t break the bank when it comes to insurance? Then the Citroën C1 1.0 VTi Touch 3d is the ideal car for you. 

While there are cheaper motors out there, not many of the options in our list of the cheapest cars to insure offer you the possibility of paying £0 a year in road tax. This means the Citroën C1 1.0 VTi Touch 3d is ideal for cost-conscious businesses and private owners alike. 

Fuel economy by MPG: 

BIK rate: £31 – £34 per month (basic rate); £63 – £69 per month (basic rate) 

Annual cost of road tax: £0 – £155

Insurance group: 6

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iCompario is the free online marketplace for business products and services, where managers and owners can research and rapidly compare fuel cards, vehicle tracking systems, insurance, telecoms and other essentials. The team follows up online queries by telephone so every site visitor finds their ideal, future-proof product at the best price possible.

Get a quote for fleet motor insurance from a trusted UK insurer today and find out how much money your company can save on its vehicle costs.

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