Cheapest cars to insure 2026

Although the Hyundai i10 is one of the best city cars on sale, combining sophisticated looks with the driving experience of a larger car, the sad news is that it won't be available for much longer. Production is ceasing, meaning the firm's small car offering will be the electric Hyundai Inster, which is in insurance group 23 – ouch!

Despite its diminutive dimensions, the i10 can accommodate four adults with ease, largely at the expense of boot space which is restricted to 252 litres of capacity when the rear bench is in use. Hyundai's equipment levels are generous, with all i10s featuring digital instrumentation, an 8.0-inch multimedia touchscreen complete with Apple CarPlay and  Android Auto compatibility, plus a host of driver assistance and safety systems all included as standard.

There are two petrol engines to choose from that qualify for the group 2 insurance banding: a 63PS 1.0-litre and a 79PS 1.2-litre. If you opt for entry-level Advance trim, you can choose either engine – as long as it’s paired with a five-speed automated gearbox – and get group 2 insurance, with the more expensive Premium version it's just the smaller one.

The Hyundai i10's combination of modest performance, excellent Euro NCAP safety credentials and relatively inexpensive repair costs all help keep insurance premiums low. It's one of the few new cars that still sits close to the very bottom of the insurance group rankings, making it an excellent choice for new drivers.

Since its mid-life facelift in 2025, bringing its styling more into line with its larger model ranges, prices of the Kia Picanto have crept up a little since the Kia gave it a mid-life facelift in 2025. The latest look is eye-catching if, perhaps, a tad aggressive for a small car. There's little sense of the Picanto being cute and cuddly.

Despite its tininess, the Picanto drives engagingly well and – as is the case with its Hyundai i10 close cousin – gives you the impression you're at the wheel of something much larger, requiring a glance in the rear-view mirror to remind you of how close the back of the car really is. Its tiny 1.0 petrol engine, also shared with the i10, doesn’t cost much to run, plus there's the long-term reassurance of Kia’s seven-year/100,000-mile warranty package.

Only one version of the Kia Picanto falls into Group 3 insurance – the entry-level Pure version with the automated gearbox. Despite that being the lowest of the specifications available equipment still includes 14-inch alloy wheels, an 8.0-inch multimedia touchscreen and a reversing camera.

Also like the Hyundai i10, the Kia Picanto benefits from simple mechanicals, affordable replacement parts and a strong safety package. Those factors all work in its favour when insurers calculate premiums.

Today’s Volkswagen Polo is now similar in size to the original Volkswagen Golf. The trade-off for taking up more space on the road is that the Polo is also the closest small hatchback you can buy to a car from the class above.

In terms of its comfortable driving experience, interior quality and tech features available, a Polo feels more like a Golf than ever. It just seems quieter and more refined on the road than its rivals, while even entry-level Life versions have LED headlights and wireless phone connectivity for Apple CarPlay and Android Auto.

The downside is perhaps obvious: you pay a premium for driving perhaps the most grown-up small hatchback on the market, with new prices among the highest in the class starting a shade over £22k. However, thanks to an excellent Euro NCAP safety rating and solid build quality, if you opt for an entry-level VW Polo Life with the least powerful 1.0-litre MPI 80PS engine, it's graded in insurance group 3, while running costs should be low.

Although the Polo costs more to buy than its rivals, insurers tend to view it favourably thanks to its excellent crash protection, solid build quality and sensible engine options. It proves that you don't always need to sacrifice refinement to keep insurance costs under control.

The Skoda Fabia remains one of the best small hatchbacks on sale and has become very popular thanks to the fact it’s a really solid all-rounder, despite its small size. The Fabia has a slightly bland but spacious interior, with plenty of room for four adults while its 380-litre is one of the biggest you can get for this type of car.

The Fabia drives well, too, with smooth engines and a soft, supple ride that makes longer journeys slip by comfortably, although performance is no more than adequate for the 80PS 1.0-litre engine that's fitted to the two versions in insurance group 4. 

As ever, Skoda likes to prove the lengths it has gone to to think about the small things you might need on your journey. Its ‘Simply Clever’ features on the Fabia include an ice scraper behind the fuel filler flap and an umbrella hidden in the driver’s door.

The Skoda Fabia also shares much of its engineering with the Volkswagen Polo, meaning parts are widely available and repair costs remain competitive, while its five-star Euro NCAP safety rating was regarded as the best performance for a small hatchback when it was tested in 2021, further helping to keep insurance premiums on the low side.

Freshly facelifted to bring its design into line with its larger models, the Kia Stonic is a car that’s designed to be very easy to live with. Although Kia calls it an SUV, it’s not one that's capable of any serious off-roading, so think upon it more as a small hatchback with a height advanytage.

Not only does the Stonic look fresher outside, you can tell that a significant amount of work has gone into making its interior feel more modern and of a higher quality since the upgrade. New technology features heavily, centred around a 12.3-inch multimedia touchscreen, even on entry-level Pure models. Space is good for front-seat passengers, but a bit tighter in the rear, while a 352-litre boot offers a good amount of luggage space for the car’s size.

All models are powered by a 1.0 engine paired with a six-speed manual gearbox or seven-speed dual clutch automatic. If you’re looking for the cheapest Stonic to insure, you’ll need to opt for the entry-level Pure model with the automatic, which comes in insurance group 10E.

For buyers wanting rugged styling without the higher insurance costs that often accompany larger SUVs, the Kia Stonic is a sensible alternative. It offers the elevated driving position many buyers want while remaining low-powered, relatively inexpensive to repair and popular with older motorists who typically make fewer insurance claims.

The latest Dacia Sandero may not have the ultra-simplistic sense of personal transportation of its predecessor, as evidence by its higher pricing, but it is still a fundamentally cheap car to buy and run, with its low insurance group 10 rating being part and parcel of that.

While the Sandero isn’t the last word in performance motoring, that's in its favour when it comes to its insurance rating. Statistically, it's not the kind of car which is likely to be involved in a high-speed accident, so its modest speeds are a positive in this regard.

Because the Sandero has been built to a low price in the first place, the knock-on effect that its parts are similarly inexpensive, significantly reducing the cost of accident reparations. Neither is it a car with a particularly covetable brand image, further lowering its appeal to car thieves.

When its safety was assessed by the experts at Euro NCAP back in 2021, the Dacia Sandero was given a low two-star rating out of five, in large part due to its modest suite of driver assistance technologies. While their absence helps keep the Sandero's pricing on the low side, they don't help reduce insurance premiums – Dacia has scope to move the needle there as the tech become more mature and less costly.

The Volkswagen Caddy might be an unexpected entry in this group, as it’s much larger and more expensive than the other cars featured. However, entry-level Caddy Life models with a 116PS 1.5 TSI petrol engine and seven-speed dual clutch automatic gearbox start in insurance group 10.

The latest Caddy is an interesting combination. It looks like a van because it's based on one, offering much of the practicality benefits that entails. There’s lots of space for passengers, a huge boot and handy features such as overhead storage which could never fit in a conventional car. Vans tend to be tough and resilient, helping reduce the Caddy's insurance costs, while retained features such as the sliding rear side doors not only make access easier, they reduce the chances of denting other vehicles in the process.

Beneath the Caddy's functional bodywork is a platform which is essentially the same as the Volkswagen Golf. Not only does this make it very car-like to drive, handling well, albeit leaning more through corners, that commonality is another feature in its cap when it comes to keeping insurance premiums affordable.

Add in all manner of the latest driver assistance technologies, such as adaptive cruise control and a reversing camera and the VW Caddy helps mitigate the chances of bending its bodywork in the first place.

The current Renault Clio will soon be replaced by an all-new model – as a result, the two versions of the line-up which fall into insurance group 11 are now stock-only purchases, meaning you have to buy what's already been made with no factory orders being taken. Renault has recently cut the Clio's prices, enhancing its value for money, with both of the inexpensive to insure cars powered by the TCe 90 petrol engine weighing in at under £21,000.

The Clio has quite a firm ride but the payoff is sharp handling, while the petrol engine is reasonably smooth and economical, with an official claim of 53.3mpg. It also features plenty of desirable equipment, with entry-level Techno+ models including heated front seats, a 7.0-inch multimedia touchscreen and wireless smartphone charging as standard.

Space is decent up front, although rear-seat passengers might not be so comfortable as a greater proportion of the Clio's length has been given to its 284-litre boot.

Impressive levels of driver assistance equipment as standard and a strong five-star Euro NCAP safety rating – albeit one to non-current levels of stringency, together with relatively inexpensive repair costs all combine to ensure the Renault Clio's low-cost insurance levels.

This generation of SEAT Ibiza has been with us since 2017, but to help it maintain its appeal against a tide of much newer rivals, the small hatchback has just received its second facelift. In fairness, the overall shape still feels modern as well as being more lithe-looking than the Skoda Fabia and Volkswagen Polo it shares its platform and engines with.

That commonality is one of the reasons why the Ibiza is in relatively low insurance group 11, but it is significantly higher than its corporate cousins. Exactly why hasn't been made publicly clear, but we suspect it's in large part due to the fact SEAT has a sportier image overall, even if that's been diluted over the years since Cupra was separated away as a standalone brand.

Being targeted at a younger audience tends to elevate a car's perceived risk factor, even if the majority of Ibiza driver's aren't that youthful. It's also worth noting that only one version of the SEAT is in group 11, that being the entry-level SE specification powered by a slightly punchier and turbocharged 1.0-litre engine producing 95PS. That's only 15PS more than those premium-friendly Fabias and Polos, but mention of 'turbo' still makes insurance companies think 'speed'.

Another possibility is that the Ibiza's body panels are more intricate, with a greater number substantial creases stamped into it. This might make repairing damaged bodywork more time-consuming, thus increasing the cost, while replacement parts could also be more expensive.

Its strong five-star Euro NCAP safety rating was undertaken as recently as 2022, which will count in its favour, as will the associated driver assistance systems. While insurance premiums shouldn't be eye-wateringly expensive for the SEAT Ibiza in group 11, we would encourage you to get quotes for the comparable Fabias and Polos before making a purchase.

The Toyota Yaris is a great example of automotive downsizing. Despite its relatively small size, the Yaris packs in a lot of technolgy, comfort and safety features as standard.

All models are smooth and efficient petrol hybrids, which make driving around down very quiet and comfortable, as most of the time the engine is switched off.

Even the basic Icon trim is well equipped, too, with plenty of physical buttons as well as a central touchscreen, making everything easy to use. Despite everything it offers, insurance for a Yaris shouldn’t prove too expensive to run, with insurance rated as group 13 for the entry-level Icon specification.

Why so low? Well, for one the Yaris's decent Euro NCAP safety rating will be in its favour, despite dropping from five stars to four when it was re-tested in 2025. Its other key advantages are that it's popular with an older demographic of buyers who are treated as lower risk, plus it's also a car that people favour who wish to maximise their fuel economy, lessening perceptions of it being in any way a performance car. As a comparison, the specialist Toyota GR Yaris hot hatchback can be as high as insurance group 44.