Car insurance can be one of the most significant additional costs when buying a new car, especially for young drivers who have yet to build up a no-claims bonus.
Shopping around for insurance is vital, as the price varies dramatically between companies. Most providers now offer telematics deals - commonly known as black boxes - which are designed to monitor your driving habits. Provided you don’t break the terms of the agreement, such as driving at night or going over the speed limit, you could save a significant amount on your insurance.
But choosing the right car is arguably the simplest way to cheaper insurance. Entry-level vehicles from high-volume manufacturers will be the most affordable cars to insure, as new parts and service options are easier to come by compared with high-end models.
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Insurance is measured on a scale of one to 50, with the smaller number indicating a car is cheaper to cover. Many cars that fall into the lower categories are city cars, hatchbacks and small family vehicles.
With that in mind, here are some of the best-value cars on the market that are also cheap to insure:
It may not be the most glamorous car on sale, but the Dacia Sandero is by far the cheapest new car on offer in the UK.
Dacia, a subsidiary of Renault, is one of the market’s leading budget car brands, with its Sandero hatchback proving to be a popular model among young drivers and bargain-hunting motorists.
The Sandero sits in insurance group 2, with prices ranging from £7,000 to £9,000, says comparison website Confused.com. Top-spec models come with a range of features, including satellite navigation and rear-parking sensors, that would otherwise be listed as optional extras on its more expensive rivals.
Courtesy of a thorough redesign in 2016, the latest Ka is a completely different vehicle to the car that came before it.
Now called the Ka+, Ford’s entry-level model ditched its “funky” looks and “diminutive” three-door design for a “dumpy” five-door layout that “prioritises practicality and a cheap purchase price over fashionable looks”, says Autocar.
Despite being shorter than the Fiesta, the Ka+ offers enough room for a six-foot-tall passenger to sit behind another occupant of a similar height “without any issues”, the magazine says, making it a viable option as an everyday family runabout.
The Ka+ drops into insurance group 1, with entry-level models costing £11,050.
Not all cars that are cheap to insure are compact city runabouts. Take the Kia Rio, for instance, which offers five-door family hatchback practicality for as little as £12,495.
“It's a competent all-rounder”, says CarBuyer, boasting “generous standard equipment” and strong fuel economy figures compared to rivals such as the Ford Fiesta and Toyota Yaris. Kia also offers a seven-year warranty as standard, which makes the Rio a “trouble-free ownership proposition”.
Base-spec cars fall into insurance group 2, though the reviews site says that more expensive models can go all the way up to group 9.
Volkswagen broke into the city car market with the Up! back in 2011. Eight years on and the city car continues to be one of the most appealing budget compact hatchbacks available.
Auto Express says the Up! “is more sophisticated than its size and looks suggest”. It’s perfectly suited to running around tight and narrow city streets, yet is “enjoyable to drive” on an open country lane.
Crucially, though, the Up! is as cheap to insure as it is to buy. Entry-level models start at just £9,260 and sit in insurance group 1.
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