The ten cheapest cars to insure revealed

When you think of the cheapest cars to insure, you will likely picture a small runabout with an under-powered engine that’s about as exciting to drive as filling out a self-assessment tax return.

But the motor with the cheapest average annual insurance premiums has two seats, a convertible roof and a legacy of being one of the best driver’s cars on the planet, according to a review of hundreds of thousands of UK policies.

The model in question is the Mazda MX-5 – the best-selling affordable sports car of all time. Insurer, Admiral, says the average premium paid by owners over the age of 25 is a mere £334.

The cheapest car to insure on average – or is it? The Mazda MX-5 (seen here in all four generations since launching in 1989) has the most affordable premiums for drivers over 25, says Admiral. But this has more to do with the owners than the car, we say

It listed the 10 top cheapest motors to insure on average after analysing more than 200,000 policies for drivers over 25 years old between January and March 2020.

The MX-5 was the shock vehicle to top the list.

First launched in 1989, the sporty little two seater has been the pick of the affordable convertible cars for three decades.

The drop-top model has generated a cult following, winning fans over with its brilliant driving characteristics through four generations of the MX-5, combining sublime road holding, a raspy engine noise, slick-shifting gearbox and fun rear-wheel drive performance.

The MX-5 Mk1 has become a modern classic and values are starting to grow at a record pace as collectors snap up the best examples of the original model. 

The latest example, launched in 2015, is just as impressive to drive. And with starting prices from £23,800, it’s one of the cheapest new sports cars on the market. 

While this explains why demand is so high and Mazda exceeded one million sales of the sportster in 2016, these traits don’t always add up to cheap premiums.

In fact, you would assume it would be the complete opposite, with enthusiastic drivers of exciting machines likely to culminate in pricey policies. 

But Admiral says that the fact the MX-5 was top of its list of cheapest cars to ensure is more to do with its owners than the vehicle itself. 

Insurers calculate premium based on their claims data and the risk that someone is going to make a claim. 

The MX-5 has cultivated a strong following, winning fans over with its brilliant driving characteristics through four generations

The MX-5 has cultivated a strong following, winning fans over with its brilliant driving characteristics through four generations 

The Mk1 Mazda MX-5, which went on sale some 31 years ago, is now one of the fastest appreciated modern classic cars

The Mk1 Mazda MX-5, which went on sale some 31 years ago, is now one of the fastest appreciated modern classic cars

The current MX-5 launched in 2015. With starting prices from £23,800, it's one of the cheapest new sports cars on the market

The current MX-5 launched in 2015. With starting prices from £23,800, it’s one of the cheapest new sports cars on the market

With MX-5 owners generally older, having few accidents and likely to keep their soft-top cars secure in a garage, it becomes less surprising that it topped Admiral’s charts.

The bonus is that they have a bulletproof reliability rating and are easy to repair with lots of spares available also help to keep premiums low.

‘The Mazda MX-5 isn’t going to be the cheapest car to insure for everyone, but based on the Admiral data, MX-5 drivers aged over 25 paid the lowest average premium at the beginning of 2020,’ a spokesperson told This is Money.

Clare Egan, head of motor product at the insurer, said: ‘To help people who may be looking at buying a new car to get around now that lockdown has been eased, we’ve calculated the ten cars which are, on average, the cheapest to insure based on Admiral data from the first quarter of this year.

‘The good news is they vary in styles and size so some of the cars may suit a single person or couple, whereas others will be ideal for a family of five who need more space.’

The 10 cheapest cars to insure for motorists over 25 

1. Mazda MX-5

Average premium: £334.12

2. Fiat 500C

Average premium: £346.37

3. Volkswagen California

Average premium: £356.85

4. Dacia Logan

Average premium: £357.63

5. Volkswagen Up!

Average premium: £365.14

6. Seat Mii

Average premium: £368.75

7. Seat Arona

Average premium: £383.62

8. Skoda CitiGo

Average premium: £385.65

9. Skoda Yeti

Average premium: £388.67

10. Land Rover Defender 90

Average premium: £389.53

Source: Admiral, following analysis of more than 200,000 customer policies between Jan-Mar 2020 for drivers over 25

Fiat's 500C was listed as the car with the second most affordable premiums for drivers over the age of 25, averaging £346.37 to cover for a year

Fiat’s 500C was listed as the car with the second most affordable premiums for drivers over the age of 25, averaging £346.37 to cover for a year

The VW California campervan is predominantly owned by retirees and older motors who want to travel the country. Average premiums are just £356.85, despite its high value

The VW California campervan is predominantly owned by retirees and older motors who want to travel the country. Average premiums are just £356.85, despite its high value

The Dacia Logan estate is one of the cars you would expect to see on this list. It's cheap to buy - priced from £10,745

The Dacia Logan estate is one of the cars you would expect to see on this list. It’s cheap to buy – priced from £10,745

The previous generation Land Rover Defender 90, which went out of production in January 2016, also makes it into the list with average annual premiums of £389.53, says Admiral

The previous generation Land Rover Defender 90, which went out of production in January 2016, also makes it into the list with average annual premiums of £389.53, says Admiral 

Second in Admiral’s list is the Fiat 500C – the open-top version of the Italian firm’s popular city car that costs just £346 on average to insure.

It is followed by an entirely different vehicle, the VW California – which is Volkswagen’s answer to a home on wheels. 

The in-demand camper – which is commonly owned by retirees and older drivers who like to travel around the country, costs on average £357 –  made it into our list of the best five new campervans, revealed last month.

Daica’s affordable Logan estate, priced from £10,745, was next in the list with average premiums of £358, which also includes the VW Up!, Seat Mii and Skoda CitiGo, which are mechanically identical city cars with average insurance premiums of between £365 and £386.

Seat’s Arona (£383) and Skoda’s now defunct Yeti (£389) SUVs also made it into Admirals standings, ahead of the previous generation Land Rover Defender 90, which went out of production in January 2016.

The agricultural vehicle, which is commonly used by farmers, is cheap to repair and commonly fixed by its owners, rounded out the top 10, with average premiums of  £390.

This is possibly the most surprising inclusion in Admiral’s list. given that the Defender has become an easy target for thieves who have been stripping them of their panels to sell on the black market now that production has ceased and a new modern-era Defender is being sold by Land Rover dealers. 

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