Top 10 cheapest cars to insure and tax in the UK 2025

Cheapest cars to insure and tax – our top 10

As the cost of living continues to rise across the UK, choosing a car with low road tax and insurance is a good way to keep running costs low when you’re on the road.

Of course, many factors can determine the cost of car insurance and road tax – driver age, driving history, insurance group, vehicle cost, performance and much more. It’s important to take all of these factors into consideration before choosing a car.

To help you with your research, we’ve put together a list of the cheapest cars to insure and tax in the UK in 2025.

Please note: we’ve selected, in no particular order, the following cars based on their insurance groups, which insurance providers use to determine how risky a car is to insure or how costly it is to repair.

Most cars will pay the same road tax rates, following the changes made in April this year which determined that all cars registered from 1st April 2017 will pay a standard road tax rate of £195.

If you opt for a brand-new car, the first year of car tax is paid based on emissions before reverting to the standard rate.

Volkswagen Polo

• Insurance group: 1
• Model: EVO SE (1.0-litre)

This ever-popular supermini is a great all-rounder – it’s stylish, cheap to run and comfortable to drive.

With a high-quality interior and a well-equipped cockpit, it’s a great option if you’re looking for a city runaround, while also being a comfortable drive on the motorway when required.

A Volkswagen Polo is available with a variety of trim levels, so models can fall between insurance groups 1 and 23, with some performance models reaching up to group 30.

However, if you opt for one of the entry-level trims, like the S and SE 1.0-litre, these can be found in group 1.

Part of its low insurance rating is also due to its strong safety ratings, while the smaller engines emit less than 100g/km which will affect its first-year tax rate for new models.

Hyundai i10

• Insurance group: 2
• Model: Advance 5dr Auto (1.0-litre)

If you’re on the hunt for the cheapest cars to insure, the Hyundai i10 will likely be near the top of any list.

This well-designed hatchback is surprisingly spacious and comes with a decent amount of kit, as well as a boot big enough for the weekly shop.

Right at home in the city, its petite size and light controls make parking in tight spots a breeze, while its smooth drive makes every journey a pleasure. Usually found somwhere between car insurance groups 2 to 7, you’ll likely find the 1.0 SE 5dr and 1.0 Go SE 5dr models in group 2.

Toyota Aygo

• Insurance group: 5
• Model: VVT-I X-Trend TSS 5dr (1.0-litre)

The Toyota Aygo comes with a super-efficient 1.0-litre, three-cylinder engine that benefits from lightweight and efficient engineering, as well as agile handling.

The VVT-I X-Trend variation delivers less than 100g/km CO2 emissions. If you get an older model from before 2017, when cars were put in bands based on their emissions, it could cost as little as £20 to tax – but any Aygo registered after 2017 will be hit with the £195 flat fee to tax.

Additionally, if you opt for one of the entry-level trims, you’ll be able to insure it for less too.

Latest models can usually be found in groups 5 to 9, while earlier models can fall in groups 2 and 3.

It’s no surprise that the Aygo is a big hit with young and new drivers.

Škoda Fabia

• Insurance group: 3
• Model: SE 5dr (1.0-litre)

When it comes to cars with low tax and insurance, the Škoda Fabia has a reputation for great value for money – it’s both practical and economical, delivering up to 55.5mpg.

Plus, it’s solid and reliable, with a comfortable interior and clever design touches. Depending on the Fabia you choose, insurance groups can range from 1 to 18, with the 1.0 MPI S variation being one of the cheapest cars to insure in the Fabia lineup. Opt for a model produced before 2017 and it could cost as little as £20 to tax – but any Fabia registered after 2017 will be hit with the new £195 road tax flat fee.

Renault Clio

• Insurance group: 3
• Model: SCe 75 Play 5dr (1.0-litre)

The Renault Clio is mechanically very similar to the Dacia Sandero, but while it has a higher price tag, it’s typically not more expensive to insure.

That could be, in part, due to Renault continually improving and prioritising safety across its range of models.

The Clio is kitted out with a range of innovative driver safety tech and protection, even in entry-level variants.

Opting for an entry-level variant of the Clio is the way to go if you want a low-insurance car; you’ll usually find these models fall into insurance group 10.

Kia Picanto

• Insurance group: 4
• Model: 1 5dr (1.0-litre)

The Kia Picanto can be compared to the Hyundai i10, but with a sportier, more youthful appeal.

Kitted out with innovative technology and offering good fuel economy, it’s perfect for nipping around town with its nimble handing and light controls.

Plus, when purchased new, the model comes with Kia’s brilliant seven-year warranty (limited to 100,000 miles), which gives you that added bit of protection – used models could even have some of this left over.

Additionally, if you’re looking for low insurance cars, a Picanto is a great choice, as you’ll find most models fall into the lower insurance groupings.

Volkswagen up!

• Insurance group: 2
• Model: Up 5dr (1.0-litre)

If you’re looking for something smaller and less expensive than the Polo but still want a Volkswagen, the Volkswagen up! is another great option for those looking to pay lower insurance rates.

Popular among young and new drivers, it’s the ideal city car. Genuinely fun to drive, can comfortably seat four people and it offers more boot space than some of its rivals –251L of space with a variable height boot floor.

The best news is that many earlier models fell into insurance group 1, usually those with the 59bhp 1.0-litre three-cylinder engine, while newer versions will usually sit in group 2.

Dacia Sandero

• Insurance group: 4
• Model: SCe Essential 5dr (1.0-litre)

The Dacia Sandero is not only known for being one of the cheapest new cars on the market to buy, but it’s also on our list as one of the cheapest to insure, falling between insurance groups 2 and 12.

Not only that, but it’s a reasonably sized family car that often scores highly on reliability surveys, even outperforming plusher, well-known car marques.

The Sandero line-up starts with the Essential trim, offering a humble yet practical cabin and cockpit and powered by an 89bhp engine.

And while performance may not be its strongest suit, the Sandero is a great all-rounder, which affords motorists rugged personality and exceptional value for money.

SEAT Ibiza

• Insurance group: 3
• Model: MPI SE 5dr (1.0-litre)

If you’re looking for a car with kerb appeal but still want to keep running costs low, then the SEAT Ibiza is definitely a good option.

Bear in mind you’ll need to opt for an entry-level variant, like the SE with the 1.0-litre engine, rather than the performance-focused models to stay within a lower insurance group.

The SE comes with plenty of standard features though – like an 8.0-inch touchscreen, 15-inch alloys, a decent-sized boot and more.

It’s closely related to the Volkswagen Polo, with both models sharing the same underlying MQB-A0 platform. An Ibiza is as fun to drive on country roads as it is comfortable in town.

It’s also known for being affordable when it comes to fuel so you don’t have to worry about breaking the bank when you get to the pumps!

Nissan Micra

• Insurance group: 5
• Model: IG-T Acenta 5dr (0.9-litre)

The Nissan Micra is a reliable hatchback that’s popular among learner drivers. Depending on which trim you choose, you’ll find that most models are cheap to insure too – particularly the Acenta, which usually falls in groups 5 to 10. While the headroom in the rear might be lacking, it’s a comfortable car with useful features like cruise control, air conditioning, digital radio and Bluetooth. And like many cars in this list, it has a one-litre engine, which is more than enough for those who like to stay local and drive in the city. It's also known for being economical, which will lower the running costs even more.