Many drivers, including those still learning to drive, often forget to consider the cost of car insurance when thinking about buying a new vehicle. However, car insurance can be quite costly, with various factors contributing to the price.
The expense of car insurance is a significant worry for drivers, especially those under 25 who typically face the highest premiums. A recent RAC Report on Motoring revealed that 44% of drivers aged 17–24 cite it as their primary concern.
According to the RAC, the most effective method to lower your insurance premiums – particularly if you’re a young driver – is to select the right car. Insurance groups are determined by the Association of British Insurers (ABI), and vehicles in the lowest groups are generally the cheapest to insure.
Cars in low insurance groups are usually small, affordable, and equipped with low-powered engines – although this isn’t always the case. The RAC suggests considering where you live and where you park your car when thinking about insurance costs.
The RAC has released a list of the cheapest new cars to insure in 2025, based on the car’s quoted insurance groups. It emphasises that this is intended as a guide, and insurance costs can fluctuate depending on your personal circumstances.
What makes a car cheap to insure?
According to the RAC, a vehicle’s performance represents the most significant factor in determining affordable insurance premiums.
It said: “Generally, a car with a large, powerful engine has a higher insurance premium than one with a small engine and more modest performance.
“Insurers deem high performance cars more likely to be involved in a collision at a higher speed, and more expensive to repair or replace alongside that.”
Additional elements that contribute to lower insurance costs include excellent crash safety ratings, modest purchase prices and reduced appeal to car thieves.
