There is something very reassuring about owning a brand-new car; the warranty coverage, advanced safety features and (hopefully) free servicing. Plus, a new car means you’re more likely to have the latest technology and creature comforts, even in some of the cheapest models on sale today.
The cheapest cars on sale today usually breach the £10,000 figure (there’s only one new car that’s cheaper) which is a hefty sum of money, especially when you remember that you need to also pay for fuel, road tax, maintenance and often the most expensive cost, insurance.
All cars are placed in insurance groups ranging from 1 to 50, with lower figures usually being cheaper to insure. And while other factors will determine how much your insurance costs like mileage, driving age and driving experience, a lower insurance group will save you some money.
We’ve found eight fantastic cars that fit into either Group 1 or Group 2, making these cars some of the eight cheapest brand-new cars to insure.
Volkswagen Polo
One of the plushest cars you can get in a low insurance group, the VW Polo is a safe bet thanks to its spacious cabin, excellent quality and stylish interior touches, including an 8.0-inch touchscreen display included as standard on all new Polos.
While you’re limited to a 1.0 litre engine if you want Group 1 insurance, there are loads of different trim levels available that offer different extras. The United model for example includes an electric sunroof, heated seats and built-in sat-nav while still being in Group 1.
Related: How to save money on your car insurance
Volkswagen Up
One of the finest city cars currently on sale, the Volkswagen Up offers a surprising amount of space in such a small package. While some Ups are available with more power, only the slightly weak 60hp (horsepower) 1.0-litre model slots into in Group 1.
For this, you can get either a range of trim levels with the High Up offering the most in terms of creature comforts. You get a 5.0-inch infotainment system, heated seats and a sat-nav as standard all in an excellent Group 1 insurance car.
Skoda Fabia
Skoda’s ageing Fabia is still a contender thanks to the fact it is spacious, cheap to run and quite fun to drive. The five-door hatchback may not be the plushest car here, but it can be had with a Group 1 insurance rating.
You can only get the 1.0-litre engine if you want Group 1 insurance but there are various trim levels you can have, including the rather nice SE. Just be warned that air-con is an optional extra on the S model.
Nissan Micra
Another handsome city car, the Nissan Micra is a well-engineered option that is both cheap to buy, cheap to run and cheap to insure too.
To get the coveted Group 1 insurance rating, you’ll need to stick with the basic 71hp 1.0-litre engine but there are several trim levels available and all models come with a 7.0-inch touchscreen display.
Kia Picanto
Easily one of the most stylish city cars on the market, the Kia Picanto is a modern-looking car with cheap running costs and an excellent seven-year warranty.
Only the Picanto 2 trim fits into Group 1 insurance but this one comes with heated seats and air-conditioning even if it does only feature a 3.8-inch monochrome infotainment display. At least it has Bluetooth smartphone connectivity.
Related: Insurance groups explained
Dacia Logan MCV
The humble Dacia Logan MCV is a great choice if you’re wanting a new car on a budget. One of the cheapest new cars to buy in the UK, the Logan is by far the largest car on this list, offering an impressive 1,518 litres of boot space with the rear seats folded flat.
The cheapest Logan MCV trim levels (Access and Ambiance) fit into Insurance Group 2 and the low cost to buy them makes them one of the cheapest cars on this list. While these may be one of the sparest cars here in terms of equipment, the Dacia remains a solid choice if space is a top concern.
Ford Fiesta
The UK’s bestselling car for a reason, the Ford Fiesta is a class-leading supermini because it’s such a good car. Offering a brilliant range of peppy engines, exceptional handling and filled with fancy technology it’s a great choice of car.
The lowest insurance group for a Fiesta is Group 2 for the Style 1.1. This model has 70hp and comes with an 8.0-inch touchscreen, heated door mirrors and air conditioning as standard. The only real downside is that it isn’t the roomiest of cars on the inside.
SEAT Ibiza
A rival for the Ford Fiesta, the SEAT Ibiza is another fun looking supermini that fits into Group 2. While the interior isn’t as modern or refined as other cars, there is plenty of room in the back and the car is comfortable to drive too.
The 1.0 SE technology model is our pick of the range, offering a nice 6.5-inch touchscreen with sat-nav built-in while still being a Group 2 car to insure.
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