The cheapest new cars to insure in 2016 – revealed

March 8, 2016

You must have been living under a stone for the past few months (or alternatively in self-imposed winter hibernation) if you weren’t aware that car insurance premiums are back on the rise due to a number of contributing factors.

Factors such as the knock-on effect of the recent Insurance Premium Tax increase, burgeoning whiplash claims and dropping fuel prices (the latter equating to the insurance industry’s dubious mathematical formula which goes a little something like this: cheaper fuel + motorists driving further because of cheap fuel = more likelihood of being involved in an accident).

Anyway, you’ll probably be keen to know how to beat the motor insurance providers at their own game in 2016, at least in terms of the steps YOU can take to minimise the car insurance policy premium you’re paying. And no, we’re not talking about shopping around for insurance quotes, ensuring that you add an experienced driver to your existing policy or adopting telematics gadgetry to help alleviate the pain of parting with astronomical sums of money monthly in return for the pleasure of being behind the wheel of your car.

No instead we’re focusing our minds on the car itself; and moreover the types of new cars out there which will cost you almost nothing to run this year.

Although not quite ‘nothing’, as we still have to pay for fuel and road tax and various other things related to car ownership (not least the purchase price of the vehicle in the first place), so this was really a manner of speaking.

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We have compiled a list of what we believe to be the cheapest new cars to insure out there right now, in a bid to do our bit for your personal finances. There’s no great science to it (the research and findings) aside from perusing the car insurance groups, which we’ve already done to save you the time.

Plus we feel we’ve put together a good cross-section of new cars to tickle all tastebuds and cater for all driving needs. Admittedly there’s not too many Ferraris included in this compilation (zero, actually), and if you’re hoping to find the surprise inclusion of a Jaguar you’ll also be sorely disappointed.

However, if one of your primary concerns is keeping your motor insurance within acceptable financial perimeters and you’re not that fussed on what transports you from A to B (providing it has an engine, a couple of comfy seats, a roof over your head and offers affordable insurance premiums) then we might just have what you are looking for.

Of course, individual premium quotes will vary according to your personal circumstances (and accepted car insurance practice), typically along the lines of age, driving experience, postcode, where the car is kept, how many miles you drive annually, etc… yet aside from this we reckon we’ve suggested a few feasible possibilities below.

The cheapest new cars to insure in 2016…



VW Up red

If you can overlook the fact that this is the only new car (to the best of our knowledge) which contains a punctuation mark in its name – except perhaps the Kia Cee’d – then you’ll quickly understand why this perky little Vee-dub makes absolute sense.

The entry level city car is amongst the cheapest new vehicles (on paper) to insure right now, courtesy of its group 1 insurance band rating. For anyone worried about space, the Up! is like a Tardis and deceptively accommodating once inside, however the one down side is that due to Volkswagen’s premium build quality and reputation for reliability, prices might be slightly prohibitive to some interested parties. But just think of ALL that insurance you can save.


Hyundai i10 1.0-litre

Hyundai i10 1 litre silver

Ahh, the automotive meeting place for affordability, quality and practicality, we give you the smallest, most compactest vehicle in the current Hyundai family.

Slotting well within the appealing domain of group 1 insurance, the i10 has come on in leaps and bounds compared to the previous model this replaced. Longer, wider and lower than its predecessor the baby Hyundai will wilfully make you believe that you’re piloting something much more grown up. A fantastic little city car which has bagged a number of motor industry accolades since it burst back on the scene.


Skoda Citigo

Skoda Citigo green

You’re not going to get an awful lot of creature comforts in the more poverty-spec versions of this urban runabout (but having said that there is a range of options available to appease any detractors). But what the driver/owner might feel they lack in on-board toys, they will quickly acknowledge is made up for by running costs; with insurance premiums the star attraction here.

What’s more, this insurance group 1 supermini offers a rewarding driving experience too, according to the motoring press, so it really is a win-win situation.


Seat Mii

SEAT Mii yellow

Sharing its underpinnings with its aforementioned VW and Skoda brethren the little Mii (daft name, but owners will be having the last laugh when it comes to insurance premiums) is nevertheless jam-packed with its own unique sophistication and personality to boot. And measuring a mere 3.5-metres in length is ideal for negotiating tricky inner city spaces.

The Mii handles with agility and is an adept performer in its own rights as well as being a quiet and comforting place to find yourself.


Dacia Sandero 1.2-litre

Dacia Sandero blue

Something of a curveball we’re throwing in here, but bear with us.

Although James May’s favourite car in the world might fall into the Group 2 insurance band, that’s no reason to write it off as a low premium pretender. And for a start, you will certainly be able to afford to buy it, given that it’s officially the UK’s cheapest new car at £5,995. The entry-level Access model is the one we’re concentrating on in this instance, and as a capacious and renowned 5-door supermini, versatility is also high on its personal agenda. As well as that eye-popping affordable insurance premium.

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