Ten cheapest cars to insure in 2026 for people in UK under 25
Young people often pay a premium for the right to drive legally in the UK (Image: Getty)
New drivers in the UK, particularly those aged 17–24, face significant insurance costs after passing their driving test. But making a smart choice about your starter vehicle could cut that hefty bill down by hundreds.
This is not new: generations of people earning their licence have been met with the eye-watering cost of insurance, often worth hundreds of pounds a month. Some can cut costs by agreeing to limits and restrictions, such as installing a black box and following a curfew or monitoring system.
But in most cases, young drivers simply have to ‘wait it out’ until they’re proven to be less of a road risk. Government statistics show that young drivers are much more likely to crash and cause injuries on the road.
Being able to take to the open road in your own car opens up many opportunities, but it also introduces a new level of responsibility that young drivers can take time to grasp – and the cost of insurance reflects that. There are a few vehicles new drivers are recommended to get, as they’re often found to have lower insurance costs, according to a RAC report.
Some of these cars are quite common on UK roads, with the ‘best’ in the ranking being “cheap-to-run” and often brings back “the lowest quotes on average for 17-year-old drivers”, according to the report.
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Car insurance is a strict legal requirement in the UK for driving or parking on public roads. You must have third party cover as a minimum to protect others, with penalties for ignoring this including unlimited fines, points on your licence, or vehicle seizure.
Top 10 cheapest cars to insure for 17 to 25-year olds:
According to the RAC, there are a handful of vehicles that would make a good and economical choice for new drivers
- Fiat 500
- Peugeot 108
- Hyundai i20
- Ford Fiesta
- Vauxhall Corsa
- Renault Clio
- Peugeot 208
- Toyota Aygo
- Skoda Fabia
- Citroen C1
Discussing the top spot on the list, a RAC spokesperson said: “The Fiat 500 is a small car icon, both in classic and modern form. The original model launched in 1957 as a compact, affordable mode of transport for Italy’s vast working-class population.
“Today’s 500 takes the original’s funky design into the modern age, but has proven immensely popular as a cheap-to-run style icon for young drivers. Despite there being small cars in lower insurance groups than the little Fiat, data from RAC Insurance shows it’s the car that receives the lowest quotes on average for 17-year old drivers.”
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Other options include Peugeot 108 and the Hyundai i20 for cheaper than average insurance quotes. Experts suggest the Peugeot option is ” nearly identical under-the-skin” as other pricy options like the Citroen C1 and the Toyota Aygo, it ” has the cheapest insurance quotes for 17-year olds of the three”.
The RAC website claimed: “While the i10 is Hyundai’s smallest, most affordable model with the lowest insurance groups, it’s actually the bigger i20 that averages out with the lowest quotes for new 17-year old drivers.
“While it might not have the most kerb appeal here, the i20 has size, comfort and reliability on its side. It’ll be more suitable for carrying occupants and tackling motorway trips than some cars here, while if you can afford to get a newer model, you’ll have the benefit of Hyundai’s excellent five-year warranty, too.
Read more about the cars listed by the RAC here. The site also mentions how people can try to reduce car insurance premiums with other methods like increasing the excess or adding another responsible driver onto the policy.
