Car insurance can be costly – particularly for those under 25 who tend to have the highest premiums
Many drivers, or even those still in the learning phase, often overlook car insurance when contemplating purchasing a new vehicle. However, car insurance can be quite expensive, with various factors influencing the cost.
The cost of car insurance is a big concern for drivers, particularly those under 25 who tend to have the highest premiums. A recent RAC Report on Motoring said 44% of 17–24-year-old drivers list it as their top concern.
According to RAC, the most effective way of reducing your insurance premiums – particularly as a young driver – is to choose the right car. Insurance groups are decided by the Association of British Insurers (ABI), and cars in the lowest groups are generally the cheapest to insure.
Cars in low insurance groups tend to be small, affordable and have low-powered engines – though that isn’t always the case. RAC recommends factoring in where you live and where you park your can when considering insurance costs.
RAC shared a list of the cheapest new cars to insure in 2025, based on the car’s quoted insurance groups. It points out that it is designed as a guide, and insurance costs can vary depending on your individual circumstances.
Top 10 cheapest cars to insure for new drivers 2025
- Hyundai i10
- Volkswagen Polo
- Skoda Fabia
- Kia Picanto
- Toyota Aygo X
- VW Caddy
- Fiat 500
- Dacia Sandero
- Renault Clio
- Seat Arona
What makes a car cheap to insure?
According to RAC, the biggest factor that makes a car cheap to insure is its performance. They said: “Generally, a car with a large, powerful engine has a higher insurance premium than one with a small engine and more modest performance.
“Insurers deem high performance cars more likely to be involved in a collision at a higher speed, and more expensive to repair or replace alongside that.”
Other factors that make a car cheaper to insure is a good crash safety rating, a low purchase cost and a lack of popularity with thieves.
