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Top 5 Tuesdays: Cheapest Cars to Insure

April 14, 2015

We’re back with another edition of Top 5 Tuesdays – and this week, we’re giving you the full scoop on the cheapest cars to insure. We’ll show you how you could climb inside in a sexy city car without breaking the bank trying to run it. And if you’re looking for help financing your new wheels, we can help there, too!

Fiat Panda

The funky Fiat Panda rolls in at £9,375, which is slighter higher than most of its rivals – but falling into insurance groups 2-7 means running costs will remain low. The cheapest model available is the standard 68bhp 1.2 litre petrol, costing £30 a year to tax and returning 54.3mpg. If you’re looking for the best fuel economy, opt for the 1.3 litre Multijet diesel. Returning 72.4mpg, the CO2 emissions on this model mean road tax will cost just £20 a year. For money-conscious buyers, the Fiat Panda combines practicality with cheap running costs, putting it up there with the cheapest cars to insure.

Skoda Citigo

If you’re on the prowl for a city car that’s reliable and fun, the Skoda Citigo is a perfect fit. While the exterior makes the car look boxy, don’t be fooled by its appearance – inside the cabin, the Citigo is surprisingly spacious and practical. The two 1.0 litre petrol engines produce 59 and 74bhp, with the 59bhp engine reaching 0-62mph in 14.4 secs. If you’re after the best economy, the 59bhp GreenTech engine – returning 68.9mpg and with CO2 emissions of just 95g/km – is the way to go.

In terms of insurance costs, the Citigo is impressive. The 59bhp engine starts in the lowest insurance group possible (1) with the more powerful 74bhp engine falling into insurance group 2. Coming in at £8,210, this low-cost motor is a hot contender for a cheap to run, cheap to insure city car.

Volkswagen up!

The Volkswagen up! comes with similar returns to the Skoda Citigo, with its two 1.0 litre petrol engines producing 59 or 74bhp. Fuel economy on the standard 59bhp engine is 62.8mpg, while 105g/km of CO2 emissions will keep road tax at just £20 a year. If you opt for BlueMotion technology, this model is exempt from road tax and returns 68.9mpg. In the standard model, 0-62mph takes 14.4 secs and this car performs well in the city or out on the open road. Insurance groups for the up! range from 1-4, with the less powerful 59bhp engine starting in low-cost group 1. Cruising in at a cool £8,765, the Volkswagen up! is a high quality city car that will allow you to keep costs low.

Vauxhall Corsa

While its £9,175 price tag makes it slightly more expensive than other city cars, the Vauxhall Corsa is a cheap motor to run. If you’re looking for efficiency, the best option is the 1.3 litre CDTi diesel engine. Returning 85.6mpg and emitting just 87g/km of CO2, this model is completely free from road tax. In terms of insuring this car, the least powerful standard model sits in group 2 – making it one of the cheapest cars to insure for drivers.

Toyota Aygo

At £8,695, the Toyota Aygo is a little pricier than most of its rivals – and while running costs are low, they don’t quite compete with other city cars. With fuel economy of 69mpg and road tax exemption, the Toyota Aygo returns the same fuel economy as the Volkswagen up! BlueMotion. Every model comes with a 1.0 litre petrol engine and reaches 0-62mph in 14.2 secs. In terms of insurance, the Toyota is slightly less impressive than the Citigo or VW’s up! – with the entry-level Aygo starting in insurance group 6 and higher-end models sitting in group 7.

When it comes to finding the cheapest car to insure, the initial cost will always be a major factor. Whether you’ve got your eye on the tiny Toyota Aygo or it’s the Skoda Citigo that gets your vote, our range of flexible finance options can get you one step closer to the model of your choice. Apply now or check out our car finance calculator for an instant quote.

About The Author

Jon Le Roux is co-founder and company director of The Car Loan Warehouse. Being a mad engineering and motorsport enthusiast, I spend more hours than is healthy, watching, reading or talking about cars, boats, motorbikes…..basically anything with an engine.