3rd February 2025
It’s an issue highlighted in the latest RAC Report on Motoring, where 44% of 17–24-year-old drivers list it as their top concern. Figures from the Association of British Insurers (ABI) show that nine-in-10 drivers have seen their premiums rise in the past year.
Well, 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 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 as a couple of surprises in this list reveal.
Also consider where you live as a factor for insurance costs, and where you park your car - parking it in a garage instead of on the street can lower your premium - while you can also fit extra car security equipment to help prevent or deter thefts.
Our list of the cheapest new cars to insure in 2025 is based on the car’s quoted insurance groups. There are designed as a guide, and insurance costs can vary depending on your individual circumstances. So what are the top 10 cheapest cars for young drivers to insure in 2025?
- Insurance group 1
The excellent Hyundai i10 is one of the last city cars on sale, surviving the exodus of the last few years that’s seen rivals such as the Volkswagen Up and Citroen C1 sent to retirement. It’s compact but surprisingly spacious and gets a decent amount of standard kit in Advance or Premium trim. The i10 is also quite good fun to drive in most forms, although perhaps not with the version you’ll need to get the cheapest insurance. Only the 63hp 1.0-litre three-cylinder model with the five-speed automated manual gearbox sits in insurance group 1 – it’s not the smoothest gearbox around and 0-62mph takes a glacial 18.4 seconds. We’d recommend stepping up to the noticeably quicker manual model if you can, which still sits in a lowly group 2.
