Low insurance group cars

Low insurance group cars are known for offering some of the cheapest insurance rates available. These cars typically have smaller engines, excellent safety features, and lower repair costs, making them less risky and more affordable to insure. Choosing a vehicle in a low insurance group can significantly reduce your premiums.

What are low insurance group cars?

Low insurance group cars belong to groups 1-10 of the 50 car insurance groups used in the UK. Cars in these groups are considered less risky by insurers due to their lower repair costs, smaller engine sizes, and better safety features.

Lowest car insurance groups and average cost by driver’s age

In the table below, you can find examples of the lowest insurance group cars (1-10) and how much you’re likely to pay for insurance based on your car model.

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• How we got these rates

  The insurance rates for these cars are based on average costs for different age groups, with a Newcastle (NE1) postcode, which represents average UK rates. Updated: June 2024 (source: Confused).

Lowest car insurance group categories

• 1-10E: Surpasses the security requirements for this type of car, leading to a lower insurance group rating.
• 1-10A: Meets the standard security requirements for this type of car.
• 1-10D: Falls short of security requirements for this type of car, resulting in a higher insurance group rating.
• 1-10U: Security standard is unacceptable. The insurer might require upgraded aftermarket security before providing coverage.
• 1-10P: Provisional status. Insufficient data is available at launch for classification. This will likely be updated once Thatcham can evaluate the new car.
• 1-10G: Grey import. Thatcham tests only officially sold UK cars, so imports are evaluated based on the insurer’s pricing.

Why are low insurance group cars cheaper to insure?

Low insurance group cars typically cost less to insure due to several factors:

• Smaller, less powerful engines: Vehicles with smaller engines generally produce less power and are less likely to be involved in high-speed accidents. This reduced performance capability typically results in lower insurance premiums, as insurers view these cars as less risky to cover. Smaller engines also often lead to lower repair and maintenance costs.
• Low repair costs: Cars in low insurance groups often feature straightforward, cost-effective designs that make repairs more affordable. These vehicles are usually constructed with readily available parts and require less specialised labor, which keeps repair costs down and helps reduce overall insurance premiums.
• Excellent safety and security features: Many cars in low insurance groups come equipped with advanced safety and security features, such as anti-lock braking systems (ABS), electronic stability control (ESC), and advanced airbags. Enhanced security measures like immobilisers and alarm systems also help deter theft, which is a key factor in reducing insurance costs.
• Affordable parts: Vehicles in lower insurance groups often use parts that are inexpensive and readily available. This is due to their simpler design and commonality in the market. The affordability of parts contributes to lower repair costs, which insurers factor into the overall insurance premium.
• Low theft rates: Cars in low insurance groups tend to have lower theft rates, thanks to their security features and less attractive profile to thieves. Lower theft rates reduce the risk for insurers, leading to lower premiums. Additionally, many of these vehicles are less likely to be targeted by thieves due to their value and the effectiveness of their security systems.

Which other factors affect your car insurance premium?

Along with your car’s insurance group, these three factors have the biggest impact on the cost of your insurance:

• Engine size and performance. You’re more likely to pay more for your insurance if your vehicle has a bigger engine. With a smaller engine, you’re likely to be seen as less risk to an insurer and this is usually reflected with a lower premium.
• Driver location. Insurers factor in the likelihood that your car will be stolen or involved in an accident when calculating your insurance, and your location has a big impact on this. As an example, a 30-year-old in central London will pay £848 for insurance for a Dacia Sandero Ambiance SCe 75 5d, while the same 30-year-old in Newcastle may only pay £564.
• Driver age. The age of the driver also plays a huge role in determining the cost of your insurance premium. The average 20-year-old driver in London could pay £2,790 for the Toyota Yaris 1.0 VVT-i TR 5d, while the average 40-year-old Londoner will only pay £779.

However, there are a lot of other factors that can also impact the price of your premiums. These include:

• Your marital status
• Your credit history and job
• Your car’s safety rating, security and anti-theft precautions
• Likelihood of theft
• The model and age of your car
• Your driving activity
• Your driving history
• No claim discount

How can I save on my low car insurance group premiums?

Choosing a car in insurance group 1-4 is a great way to reduce the price of your premium. Thankfully, there are a few other things you can do to reduce your car insurance premium, and we’ve listed them below:

• Drive safely and avoid convictions. Although it may sound obvious, but having convictions on your record will make the cost of your car insurance skyrocket.
• Opt for public transport (where possible). You could save money on your insurance by being more sparing with your car usage. Opting for public transport or taking fewer trips will help keep your mileage, and premium, lower.
• Pay annually. Paying for your car insurance in one lump sum is a big financial outlay, but you will be thanking yourself in the long run. By paying annually, you could miss out on paying monthly interest on your instalments!
• Install extra safety features. The safer you make your car, the better your premium will be. By investing in extra safety features, your vehicle will be more secure and less of a risk to insure.
• Shop around when it’s time for renewal. When it’s time for renewal, make sure you compare your options – you’ll be surprised at how much you could save.

Bottom line

Low insurance group cars are a great option for drivers looking to save on insurance. With their smaller engines, lower repair costs, and enhanced safety features, these vehicles typically come with more affordable premiums. If you’re aiming to reduce your insurance expenses, opting for a car in a lower insurance group is a smart and cost-effective choice.

Frequently asked questions

• Are low insurance group cars good for young drivers?

  Yes, low insurance group cars are ideal for younger drivers as they help keep insurance costs down. However, always compare quotes to ensure you’re getting the best deal.

• What does the insurance group number indicate?

  The insurance group number indicates the relative cost of insuring a car. Lower insurance group numbers, such as 1 or 2, represent vehicles that are cheaper to insure. These cars usually have smaller engines, lower repair costs, and better safety features, all of which contribute to reduced insurance premiums.

• How does Thatcham Research impact low insurance group ratings?

  Thatcham Research plays a crucial role in determining insurance group ratings by evaluating factors like safety, security, repair costs, and vehicle performance. For cars in low insurance groups, Thatcham’s assessments ensure that these vehicles meet high safety standards and have low repair costs, which helps keep their insurance premiums lower. Their evaluations help insurers determine the risk level associated with each car, influencing its insurance group rating.

The offers compared on this page are chosen from a range of products we can track; we don't cover every product on the market...yet. Unless we've indicated otherwise, products are shown in no particular order or ranking. The terms "best", "top", "cheap" (and variations), aren't product ratings, although we always explain what's great about a product when we highlight it; this is subject to our terms of use. When making a big financial decision, it's wise to consider getting independent financial advice, and always consider your own financial circumstances when comparing products so you get what's right for you. Most of the data in Finder's comparison tables has the source: Moneyfacts Group PLC. In other cases, Finder has sourced data directly from providers.

*Based on data provided by Consumer Intelligence Ltd, www.consumerintelligence.com (July ’24). 51% of car insurance customers could save £523.17