These are the cheapest cars to insure in the UK in 2022

Average car insurance premiums across the UK have risen £51 year-on-year to £704 in the second quarter of 2022, reaching the highest three-month average since hitting £724 in the last quarter of 2020, a recent analysis by Compare the Market has revealed.

According to the comparison website’s latest premium drivers report, the spike can be attributed to “increased cost pressures to insurers,” which include the rise in the value of second-hand cars and higher repair costs. The research added that the lifting of COVID-19 restrictions has likewise contributed to the rate hike as this has resulted in more traffic, heightening the likelihood of accidents and subsequent claims.

The study also found that the cheapest motor premiums have jumped to £582 from April to June – a £34 year-on-year ascent.

“This widening gap between the cheapest and average premium means larger savings are available to motorists who switch insurers when their policy ends,” the report noted. “Drivers could now typically save £122 by shopping around for the cheapest deal, which could help offset the rising cost of living for some households.”

The same holds true for young and inexperienced motorists, the research added.

“The average premium for drivers aged between 17 and 24 stands at £1,247 – £135 more than in the same three months in 2021,” according to the analysis. “However, if young drivers shop around for the cheapest deal when their policies come up for renewal, they could save an average of £259. Switching to a telematics policy could also help young drivers save money on their insurance.”

Read more: These are the 10 cheapest cars to insure for first-time drivers in the UK

What factors impact the price of car insurance premiums?

Some cars are more expensive to insure than others – and it all boils down to risk, according to consumer financial website Forbes Advisor.

“Car insurance premiums are priced according to risk,” the site explained. “That means the greater your risk of being involved in an accident, or your car being stolen, the more you’ll pay for cover.”

Auto insurance companies use a range of factors to determine the level of risk. Personal details such as age, gender, residence, occupation, and driving and claims history all help paint a picture of a motorist’s likelihood of getting involved in an accident.

Read more: Why are automatic cars more expensive to insure?

The car’s make and model are also major considerations as these indicate how much the vehicle is worth, how fast it accelerates and travels, and what security and safety features are incorporated. The vehicle type also tells insurance companies how appealing it is to thieves and how well it would fare in an event of an accident.

“Expensive vehicles cost insurers more in pay-outs when they’re damaged and in need of repair or are written-off following an accident, and so they attract higher premiums,” Forbes Advisor noted. “Cars with advanced security features are harder to steal, which makes theft claims less likely – and so they benefit from lower premiums.”

Read more: Which are the safest new cars in the UK?

What is an insurance group and how does it work?

Every vehicle on sale in the UK is categorised into an insurance group, which helps insurance providers determine how much premiums they will charge. The groups are numbered anywhere from 1 to 50. As a general rule, the lower the insurance group, the cheaper it will be to have the car insured.

A group rating panel (GRP) consisting of representatives from the insurance industry and members of the Association of British Insurers (ABI) and Lloyd’s Market Association (LMA) are tasked to determine in which category each car will fall. Research for the GRP is conducted by the Motor Insurance Repair Research Centre (Thatcham).

Several factors are considered when determining an insurance group, including the cost to repair or replace damaged parts, the value of the car, and how it performs on the road. Because of these parameters, the same car model can vary between groups, depending on the trim level and features. Once set, a vehicle’s insurance group cannot be changed.

Read more: Revealed - the 10 cheapest family cars to insure in the UK

What are the least expensive cars to insure in the UK in 2022?

Car comparison website Carwow recently released a list of the vehicles in the country with the cheapest premiums based on insurance groups. To find the exact groupings for each vehicle trim, Insurance Business referred to the car review website Parkers’ insurance group checker.

Here are the least expensive cars to insure in the UK based on these groupings. The list is arranged alphabetically.

1. Dacia Sandero Hatchback (2021 onwards)

2. Fiat 500 Hatchback (2008 onwards)

3. Fiat Panda (2012 onwards)

4. Ford Fiesta Hatchback (2017 onwards)

5. Hyundai i10 Hatchback (2020 onwards)

6. Kia Picanto Hatchback (2017 onwards)

7. Kia Rio Hatchback (2017 onwards)

8. MG3 (2013 onwards)

9. Nissan Micra Hatchback (2017 onwards)

10. Renault Clio Hatchback (2019 onwards)

11. SEAT Ibiza Hatchback (2017 onwards)

12. Škoda Fabia Hatchback (2021 onwards)

13. Toyota Aygo X (2021 onwards)

14. Volkswagen Polo Hatchback (2017 onwards)

15. Volkswagen Up (2012 onwards)