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Cheap Cars To Insure

When choosing a new car, the initial cash outlay will be a big factor in your decision. What you may neglect to consider is the subsequent costs that petrol, tax and insurance incurs. So if purchasing a cost effective car is high on your agenda, you’ll need to tailor your search towards cheap car insurance as well.

Cars are categorised into insurance groups by the Association of British Insurers. These categories range from one to fifty, with fifty being the most expensive car category to insure and the lower categories at the cheaper end of the continuum.

Cars in categories one, two and three are often sold as ideal cars for young and new drivers who suffer expensive insurance premiums. But they’re not exclusive to this demographic. So if you’re looking to save on your car expenses, purchasing a car in a low insurance category is a wise move; there are a large number of cars to choose from. Take a look at just a selection of the cheapest cars to insure**:

Category 1
Citroën C1 (from 2005 onwards)
Vauxhall Corsa Hatchback (from 2006 onwards)
Fiat Panda (from 2004 onwards)

Category 2
Toyota Yaris Hatchback (from 2006 onwards)
Ford Fiesta (from 2008 onwards)
Nissan Pixo (from 2009 onwards)

Category 3
Volvo C70 Coupé Convertible (from 2006 onwards)
Toyota Aygo (from 2005 onwards)
Peugeot 107 (from 2005 onwards)

Category 4
Chevrolet Spark (from 2010 onwards)
Fiat Grande Punto (from 2006 to 2010)
Skoda Fabia Estate (from 2001 to 2007)

Category 5
Renault Megane Sport Tourer (from 2009 onwards)
Volkswagen Lupo (from 1999 to 05)
SEAT Ibiza Hatchback (from 2008 onwards)

Clearly, there are certain salient features about these cars that make them cheap to insure. Initially, it is apparent that the cheapest cars to insure are those that are relatively cheap to purchase in the beginning. It follows that cars that are cheaper to purchase are cheaper to replace should the car be written off or stolen.

Cars in the lower insurance categories are also relatively common cars. Therefore replacement parts are easier to come by. This means that cars are unlikely to be in the garage for very long and so the associated costs, such as hire car, will be reduced. These cars are also relatively new, between 3 and 4 years old on average, and so carry less risk of requiring repairs. Notably, the power behind such cars is quite low. This is seen as a good thing by insurers when applying for car insurance as it is assumed that greater acceleration speeds carry more risk.

So cars in the lower insurance categories are likely to save you money in the long run, particularly if you have previously been driving a car in a higher insurance category. If this money saving gets your engine going, you may be interested in some further tips: Compare insurers. Price comparison sites do the hard work for you, comparing a large number of quotes in one search. Simply input your details once and compare the policies and premiums on offer across the car insurance market.

Set your voluntary excess higher
Increasing your voluntary excess (the excess you agree to pay in addition to the compulsory excess) may reduce your premium. For example, by increasing the voluntary excess from £250 to £500, an experienced driver could pay £364.90* for their policy rather than £419.93*. Whilst this potential saving is attractive, it is important to consider the amount you could afford to pay out if you did need to make a claim.

Pay in one lump sum
Those who pay for their car insurance monthly usually pay more. For example, a policy may cost £419.93* on a one off payment but £461.93* in a series of ten monthly payments. So with a saving of £42.00, it’s worth paying the outright cost if you have the cash to hand, the saving could cover your petrol for the week!

Avoid small claims
If you’ve had a small prang, and the damage to your wallet is minimal, it may not be worth making a claim. Why? Well your renewal quote will only increase and if you have a high excess set up, the difference may not be massive anyway.

Avoid customisations
It may be tempting to add spoilers and wheel trims but they come at a cost to your insurance as customised parts are more expensive to replace. For instance, a car with a rear roof spoiler and alloy wheels could cost £563.76* to insure compared to £419.93* for the same car without such modifications. So perhaps avoid glitzing up your wheels until you’ve a few years no claims under your bonnet.

Be honest
All drivers will benefit from being honest. If you lie about any of your details in your application, or fail to update any details that change, the insurer will be unlikely to pay out if you make a claim. This would be costly insurance!

* Prices provided by, correct on 25.1.2011. Prices based on a 30 year old male driving a Ford Fiesta 1.6 engine having held a full licence for 12 years with 7 years no claims bonus.
** Car data taken from