Cheapest cars to insure in the UK in 2020

Date Posted 13th February 2020
Read Time 6 min read

When it comes to finding your next car, it’s important you think about everything, not just the monthly payment. 

Although here at Hippo Leasing we analyse the market daily and make sure our offers are some of the best across the UK, you should still consider the costs of road tax, its fuel economy and, of course, insurance. 

The cheapest cars to insure in the UK in 2020

Data from


You have to insure your vehicle before taking it on the road; it’s the law. But hunting around for the best price isn’t always easy. 

Points on your licence, previous claims and even your postcode can drastically affect your insurance premium – as well as, of course, the vehicle itself. And it can sometimes put the car you want out of reach. 

However, you can still get behind the wheel of a great new car and not face huge insurance costs. 

So, with that in mind, let’s take a closer look at the cheapest cars to insure on the roads of Great Britain and Northern Ireland in 2020. 

Volkswagen Up! | Insurance Group 1

VW Up! Lease from £113/Month

Lease from £113/Month

The Up! Is VW’s contribution to the very popular world of city cars. Although it’s small in size, there’s still ample room for four. 

With DAB radio as standard and smartphone integration on the higher-spec models, there’s plenty to keep you entertained behind the wheel, too. 

In terms of driving, VW is known for incredible balance and smooth drives. And although the Up! Is the baby of the manufacturer’s range, it hasn’t missed out on any special treatment. 

A tight chassis and responsive accelerator make it a pleasure to drive, while just delivering 105g/km in carbon dioxide and a huge 62.8 mpg mean it’s kinder on both the environment and your bank balance. 

Nissan Micra | Insurance Group 1

Nissan Micra Lease from £155/Month

Lease from £155/Month

The fifth and latest reincarnation of the famous Nissan Micra is undoubtedly the best yet. Sleek in design and well kitted out, the Micra is a brilliantly well-rounded car. 

Bluetooth, cruise control, lane departure warning, smartphone integration and a rear parking camera as standard make it one of the best spec cars in its class. Add to that it’s also one of the cheapest cars to insure in the UK, and you’re pretty close to the perfect hatchback. 

Recording just under 63 mpg and Nissan’s start/stop system, you’ll also see the savings at the fuel station, giving you even more time to enjoy your great value Micra. 

Smart EQ ForFour | Insurance Group 11

Smart EQ ForFour Lease from £236/Month

Lease from £236/Month

As Mercedes-Benz; part-owner of Smart, has developed over the years, as has the Smart Car. 

When it first hit the roads, its styling and size split opinion; and that’s being kind. But today, its quirky design, incredible use of space and dynamic range make it a highly desirable car. 

With plenty of kit inside, including Smart cruise control, smartphone MirrorLink, rear park assist and crosswind assist, the ForFour EQ is up there with the best of its class, too. 

Add to that it;s is fully electric and one of the cheapest cars to insure in the UK, and owning one may be one of the most economical decisions you could make. 

Ford Fiesta | Insurance Group 2

Ford Fiesta Lease from £148/Month

Lease from £148/Month

When it comes to smaller hatchbacks, the Fiesta is held by many as the best money can buy.

A superb chassis, modern design, ample equipment and a flawless driving experience all combine to create a genuinely brilliant car. 

Inside, you’ll have access to Ford’s highly regarded SYNC system, including Bluetooth and Apple CarPlay or Andriod Auto, a simple but nicely finished cockpit and room for four passengers. 

It really is a special little hatchback. 

SEAT Ibiza | Insurance Group 2

SEAT Ibiza Lease from £132/Month

Lease from £132/Month

Often a favourite with younger drivers, the SEAT Ibiza gives you everything you need behind the wheel, and more. 

A clutter-free interior which houses five seats, Bluetooth, a touchscreen display on the higher specs and plenty of boot space make it a brilliantly, all-rounded hatchback. 

With low monthly payments, more than 54 mpg and lower insurance costs compared to most on the road, you really can save and still enjoy a great new car. 

Hyundai i10 | Insurance Group 1

Hyundai i10 Lease from £118/Month

Lease from £118/Month

The Hyundai is genuinely a staggering car. It’s actually pretty tough to work out why it’s so inexpensive. 

It looks great, seats five, has some incredible tech, including Apple CarPlay, Andriod Auto, Bluetooth, cruise control and DAB radio, records over 55 mpg and comes with Hyundai’s five-year warranty.  

Add to that it’s in this list, and it’s arguably one of the best deals going. Spend less, drive a great car; who doesn’t like the sound of that?

Fiat Panda | Insurance Group 3

Fiat Panda Lease from £97/Month

Lease from £97/Month

For simple, no-frills driving, the Fiat Panda is your answer. Uncomplicated in design, the Panda is a practical, comfortable and reliable spacious hatchback. 

With loads of room in the boot and for your passengers, Isofix attachments on the rear seats, and recording north of 50 mpg, the Fiat is a great basic car – and its price reflects that. 

Toyota Yaris Y20 | Insurance Group 8

Toyota Yaris Y20 Lease from £214/Month

Lease from £214/Month

Its eye-catching design, sleek interior and incredible hybrid engine make the Yaris truly one of a kind on this list. 

The Toyota’s auto-speed limiter, cruise control and reversing camera make it a really enjoyable and practical place to be. 

Add to that its jaw-dropping 85mpg thanks to the Yaris’ superb 1.5-litre hybrid engine, SatNav and panoramic roof and you have one of the hottest cars on the market today. 

Kia Rio | Insurance Group 2

Kia Rio Lease from £152/Month

Lease from £152/Month

And finally, we come to the Kia Rio. Well-sized, simple in design; the Rio is a great family car. 

But that doesn’t mean it’s bare. Even with the entry model you still have access to Bluetooth, audio streaming, a USB charging port and vehicle efficiency prompts to make sure you’re getting as much out of your fuel as possible. 

Pumping out more than 50 mpg, low monthly payments, economical insurance costs and Kia’s famous seven-year warranty make this car a genuinely great buy. 

READ MORE: Advantages & Disadvantages of Car Leasing

Please note: The insurance group is based on the lowest spec model and correct at time of publication.

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