Cheapest cars to insure for new drivers 2026

The cost of car insurance is a real worry for many drivers – and it hits under-25s the hardest, with young drivers typically facing the highest premiums. Let’s take a look at the cheapest cars to insure for new drivers.

It’s a concern highlighted in the latest RAC Report on Motoring, where 44% of drivers aged 17–24 say insurance costs are their number one issue. On top of that, figures from the Association of British Insurers (ABI) show that nine in ten drivers have seen their premiums increase over the past year.

So, what can you actually do about it?

One of the most effective ways to bring your insurance costs down – especially if you’re a young driver – is choosing the right car. Insurance groups are set by the ABI, and cars in the lowest groups are generally much cheaper to insure. It’s worth finding the cheapest cars to insure for new drivers to avoid costly premiums.

Vehicles in these lower insurance groups are often smaller, more affordable, and fitted with lower-powered engines. That said, it’s not always that simple – and there are a few surprising models that still manage to keep insurance costs down.

It’s also worth remembering that your insurance price isn’t just about the car itself. Where you live, how you use your car, and even where you park it can make a difference. Parking in a garage rather than on the street can help reduce your premium, and adding extra security features can also lower the risk of theft in the eyes of insurers.

Our shortlist of the cheapest cars to insure in 2026 is based on insurance group data. It’s designed as a guide only, as your actual price will depend on your individual circumstances. If you want to see what you could pay, you can get a quote directly in the Rooster app – we’ll even search over 100 providers to help find you the cheapest deal, whether it’s with Rooster or not.

Cheapest cars to insure for new drivers in 2026:

• Hyundai i10
• Volkswagen Polo
• Škoda Fabia
• Kia Picanto
• Toyota Aygo X
• Volkswagen Caddy
• Fiat 500
• Dacia Sandero
• Renault Clio
• SEAT Arona

With the right car – and the right insurance – cutting your costs could be easier than you think.

1. Hyundai i10

Insurance group 1 (1.0 auto)
The Hyundai i10 is one of the last true city cars still on sale, outliving rivals like the Volkswagen Up and Citroën C1. Despite its compact footprint, it’s surprisingly roomy inside and comes well equipped in Advance or Premium trim. It’s also genuinely enjoyable to drive – though not quite in the version that unlocks the cheapest insurance.

Only the 63hp 1.0-litre three-cylinder with the automated manual gearbox sits in insurance group 1. Performance is relaxed to say the least, with a 0–62mph time of 18.4 seconds, and the gearbox isn’t the smoothest. If budget allows, the manual version is noticeably quicker and still keeps insurance costs low in group 2.

2. Volkswagen Polo

Insurance group 3 (1.0 Life)
With the Ford Fiesta discontinued, the Volkswagen Polo has stepped into the role of the definitive small car. After nearly 50 years on sale, the current model feels impressively grown-up, with a high-quality interior and refined driving manners.

In entry-level Life trim with the 1.0-litre three-cylinder engine, it’s one of the cheapest cars here to insure. Performance is modest, but perfectly adequate for everyday driving, and it holds its own on faster roads. Strong safety credentials, including a five-star Euro NCAP rating, help keep insurance costs down.

3. Skoda Fabia

Insurance group 4 (1.0 MPI)
If the Polo stretches the budget too far, the Skoda Fabia offers much of the same appeal. Sharing engines and underpinnings with Volkswagen models, it combines solid build quality with generous interior space and Skoda’s trademark ‘Simply Clever’ features.

The lowest insurance grouping sits slightly higher than the Polo’s, despite a five-star Euro NCAP score. Even so, SE Edition and Design Edition trims sit in the same group, giving you flexibility without pushing costs up.

4. Kia Picanto

Insurance group 4 (1.0 DPi 2)
Think of the Kia Picanto as the Hyundai i10’s sportier sibling. Its sharper styling seems to nudge it into a higher insurance group, even though the two cars share much of their mechanical DNA.

The good news is that both manual and automatic versions qualify for the lowest insurance group in base ‘2’ trim. You also get strong value, plenty of tech and Kia’s excellent seven-year warranty, though its three-star Euro NCAP rating isn’t class-leading.

5. Toyota Aygo X

Insurance group 5 (1.0 Pure)
The Aygo has long been a favourite with new and young drivers, and the latest Aygo X adds a rugged, mini-SUV twist to the formula. Despite the makeover, it remains a city car at heart – affordable, compact and cheap to run.

It’s well equipped even in entry-level Pure trim, with features like adaptive cruise control and a reversing camera. It drives well and offers good safety tech, though rear-seat space is limited.

6. Volkswagen Caddy MPV

Insurance group 8 (1.5 TSI, standard trim)
This is the wildcard of the list. The Volkswagen Caddy proves that cheap insurance doesn’t always mean small cars. Its van-based roots may make it less appealing to riskier drivers, which likely helps keep insurance groups down.

In return, you get a comfortable drive, a five-star Euro NCAP rating and loads of space for passengers and luggage. The most basic trim with the 115hp petrol engine is the cheapest to insure, with the diesel only one group higher.

7. Fiat 500

Insurance group 10 (standard version)
The Fiat 500 is a genuine design icon, and its retro looks have kept it popular for years. While its age is starting to show inside and on the road, it remains a stylish and economical choice.

Powered by a 1.0-litre mild-hybrid engine, it’s more about efficiency than performance. Limited rear space and an outdated safety rating push it into a higher insurance group than newer city car rivals.

8. Dacia Sandero

Insurance group 10 (0.9 TCe Essential)
Once the UK’s cheapest new car, the Sandero has grown up – and slightly upmarket. Prices have risen, but it still offers excellent value and far more interior space than most cars at this insurance level.

Even entry-level versions get a punchy turbocharged engine that’s comfortable on the motorway. Earlier safety scores held it back, but newer models now include improved safety tech as standard.

9. Renault Clio

Insurance group 10 (0.9 TCe Evolution)
Although it shares its platform and engine with the Sandero, the Renault Clio feels far more upmarket. Its stylish design suggests higher insurance costs, but it sits in the same group.

A five-star Euro NCAP rating, strong safety tech and enjoyable handling make it one of the most well-rounded cars on the list.

10. SEAT Arona

Insurance group 10 (1.0 TSI SE Edition)
The SEAT Arona is the only small SUV on this list and, unusually, it’s cheaper to insure than the smaller Ibiza. Despite its size and higher price, it sits in a lower insurance group.

It’s well equipped, spacious and good to drive, with the entry-level SE Edition offering the lowest insurance costs and stronger performance than many city cars.

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