Summary: Choosing a car in a low insurance group can save UK drivers hundreds of pounds annually. Cars in Group 1 to 5 cost the least to insure due to small engines, affordable repairs, and good safety features. Top choices include the Hyundai i10, Kia Picanto, and Toyota Aygo X.
Car insurance is a legal requirement for every UK driver, but your car choice significantly affects your premium. According to the Association of British Insurers (ABI), the average car insurance premium in Q3 2025 was £551. Drivers with low-group cars often pay considerably less.
Every car sold in the UK is placed into one of 50 insurance groups, with Group 1 being the cheapest to insure and Group 50 the most expensive. These groups are set by the Group Rating Panel, comprising members from the Association of British Insurers (ABI) and Lloyds Market Association (LMA), with classification data compiled by Thatcham Research.
Young drivers aged 17 to 24 face the highest car insurance costs in the UK, with average premiums of around £3,350 per year according to data from 2025.
Definition: A car insurance group is a classification from 1 to 50 that indicates how expensive a vehicle is to insure. Lower groups mean lower premiums because these cars are cheaper to repair, have smaller engines, and pose less risk to insurers.
How Car Insurance Groups Work
Thatcham Research assesses every car using over 125 data points, including repair costs, parts availability, engine performance, safety features, and security systems. Cars with small engines, low repair costs, and good security end up in lower groups – meaning lower premiums.
Cheapest Cars to Insure in 2025
Based on data from the RAC and Howden Insurance:
Car Model Insurance Group
Hyundai i10 Group 1-2
Kia Picanto Group 4
Toyota Aygo X Group 1-9
Fiat Panda Group 1-5
SEAT Ibiza Group 3-10
Dacia Sandero Group 2-11
Vauxhall Corsa Group 1-14
These cars share common traits: small engines (1.0 to 1.2 litres), affordable parts, solid safety ratings, and low theft risk.
How Much Can You Save?
The gap between a Group 1 and Group 20 car can be substantial. According to Brumble, young drivers aged 17 to 25 could save £500 to £2,000 per year by choosing a low-group car. New drivers may save £300 to £1,500 annually.
Motor insurers paid out a record £11.7 billion in claims in 2024, with the average claim reaching £5,300 according to the ABI. Choosing a car that’s cheaper to repair keeps your premium down.
More Ways to Cut Costs
• Compare quotes – Prices vary widely. Always shop around.
• Add an experienced driver – A parent as named driver can lower risk.
• Consider telematics – Black box insurance rewards safe driving.
• Pay annually – Avoids monthly interest charges.
• Build no-claims – 20 years without claims could mean 56.87% lower premiums.
Final Thoughts
Check the insurance group before buying. A Group 1-5 car will almost always be cheaper to insure than Group 20+. Your age, location, and driving history also matter, so compare car insurance quotes before deciding.
With premiums falling for the first time in two years, now’s a good time to review your options.
Sources 1. Brumble – Young Drivers Insurance Guide – Brumble.co.uk
2. ABI – Motor Insurance Premium Tracker Q3 2025: abi.org.uk
3. Uswitch – UK Car Insurance Statistics 2025: uswitch.com
4. RAC – Cheapest Cars to Insure for New Drivers 2025: rac.co.uk
5. Howden Insurance – Cheapest Cars to Insure 2025: howdeninsurance.co.uk
6. What Car? – Cheapest Cars to Insure 2025: whatcar.com
