Articles

Looking for the cheapest cars to insure in 2021? Look no further...

8 minute read

All of our content is approved by our in-house advisory board of experts

We all know that a Rolls Royce will cost more to insure than a Ford Focus, but there’s a bit more to it than that… 

  • Is cheap car insurance the best car insurance?
  • What factors affect the price of car insurance?
  • Which cars are the cheapest to insure in 2021?

Car insurance: We all need it, but does it have to be expensive?

The cheapest cars to insure in 2021 are...

...drumroll please!

(Cheapest cars to insure research by AutoTrader)

Cheaper isn’t always better

Look, there’s definitely a time and a place for cheap and cheerful, but car insurance isn’t one of them. Cheap car insurance can sometimes mean that you don’t have a good level of cover, or that there are a whole load of exceptions to what is covered. When it comes to car cover, the most important thing is that you're fully protected when you need it. That said, there are some cars which are cheaper to insure than others… have we peaked your interest? Let’s take a look.

What affects the price of car insurance?

In a nutshell, here are the main factors taken into account when working out how much you’ll pay for your car insurance...

 

Your age and experience behind the wheel
The car make and model (more on that later)
Whether you keep your car on a drive, carpark or road parking
When and how far you drive
What you use your car for
Your no claim discount
Cost of parts and labour
Cost of replacement
Rising cost of claims
We’ve gone into the details a little more on our car insurance premiums explained page.

 

Why does the car make and model affect premium price?

The type of car you drive does, of course, affect what you’ll pay for your car insurance. From the engine size, to safety features and even the cost of repairs or replacement. We have to take it all into account when working out your premium. For example, a car with a large, powerful engine and expensive extras may cost more to replace or repair than a car built for safety and reliability. So, to sum it up, your average A to B school run or food shop car will be cheaper to insure than a show stopping, jaw dropping batmobile. So, when choosing a car, if cheap car insurance is a priority to you, take a look at the built-in safety features and average cost of repairs… because insurers will! That’s not all though, cars also fall into ‘car insurance groups’, so the group in which your car is in, will affect your premium price too.

How do car insurance groups affect price?

There are 50 different car insurance groups, with Group 1 usually encompassing the cheapest to insure, while Group 50 will hold the most expensive. There’s a direct correlation between the group a car falls in to, and the amount you’ll pay to insure it. Thatcham Research says that over half of all money paid out on motor insurance claims goes on repairing cars, so it is unsurprising that the cost of repairing a car plays a huge part in the car insurance group a car is in, and the subsequent calculation of its insurance premium.

So, what other factors decipher which group a car is in? 

 

The time it would take to repair
The cost of replacing the car
The price of replacing parts
The performance of the car 
The safety features of the car
The type of bumpers on the car
The security features of the car
Want to know more about insurance groups and how they affect your premium? We’ve gone into a little more detail in our Car Insurance Groups Explained article.

 

Where do LV= stand on the cheapest cars to insure?

As we’ve discussed in this article so far, there are a whole host of factors affecting the cost of your car insurance premium, a key one being the car make and model. So, we took a look at AutoTrader's list of the cheapest cars to insure in 2021, and a fair few of our customers have insured theirs with us...

Vauxhall Corsa

The new Corsa is slightly bigger than the previous model, has all the latest tech on board, and even has an all electric option available. 49,745 customers insure a Vauxhall Corsa with LV=

Toyota Yaris

The new Yaris combines Toyota’s small car expertise and SUV heritage to create a perfect hybrid to suit all lifestyles. 37,437 customers insure a Toyota Yaris with LV=

Nissan Micra

The Micra has been updated for 2021 with a few modernisations, while still living up to it's low emission name. 21,425 customers insure a Nissan Micra with LV=

Hyundai i10

A compact city car with all the latest safety gear as standard.18,841 customers insure a Hyundai i10 with LV=

Seat Ibiza

With its digital touchscreen cockpit, the Ibiza looks good and features all of the mod cons you'd expect in 2021.11,922 customers insure a Seat Ibiza with LV=

Toyota Aygo

Major changes have been made to the Aygo, since its launch, with the 1.0-litre engine being improved to become more frugal.11,749 customers insure a Toyota Aygo with LV=

Volkswagen Up

The UP has had a little facelift with a new design, new technology on board, plus the addition of a turbocharger to its 1.0-litre engine. 8,504 customers insure a Volkswagen Up with LV=

Fiat Panda

The Panda, known as Fiat's 'essential car' boasts multiple large storage spaces on board - perfect for family life. 6,778 customers insure a Fiat Panda with LV=

Skoda CitiGo

With a fuss-free dashboard and simplistic design, the CitiGo is on hand to get you from A to B safely - no fuss, no frills. 3,631 customers insure a Skoda CitiGo with LV=

Dacia Duster

Simple, functional and reliable. The Duster is a great value car to get you where you need to go with simplicity and style. 4,987 customers insure a Dacia Duster with LV=

This information is correct as of February 2021.

If you want to join our existing customers above by insuring one of these cars, take a look at our car insurance page to find out more about what we can offer you. You can also get an online quote from us in minutes…

So, how can you get cheap car insurance?

Overall there are a whole host of things an insurer looks at when working out the cost of your car insurance premium. From the make and model of your car, to your address and occupation - a lot goes into working out how much you pay to protect your car. There’s no one size fits all approach, nor is there a perfect recipe for cheap insurance, but there are appropriate ways of getting cheaper insurance.

So, if price is top of your list when it comes to choosing your car and insurer, you may want to have a read of our 7 top tips to get cheaper car insurance
Remember, cheaper isn’t always better, especially when it comes to something as important as car insurance. You want to know you’re covered when you need it, so as well as making sure the price is right for you, double check the cover is right for you too.  
 
This article contains links to other sites, and we're not responsible for the contents of any of these websites.

Have we got you thinking about car insurance?

Get a car quote