In the UK, owning a car means more than just paying for the car itself. You have to consider the road tax and car insurance, both of which can be expensive, especially for newer or high-performance vehicles.
If you’re on a budget, finding a used car that’s cheap to insure and has low road tax can make a big difference.
In this guide, we’ll explore the best used cars for those looking for affordable road tax and cheap insurance in the UK. Whether you’re a first-time buyer or just looking for a budget-friendly option, we’ve got you covered with practical tips and recommendations.
What Affects Road Tax and Car Insurance Costs?
Before we dive into the list of cars, let’s take a quick look at the two key factors that affect the cost of road tax and car insurance in the UK:
1. Road Tax (Vehicle Excise Duty – VED)
Road tax, officially known as Vehicle Excise Duty (VED), is based on your car’s CO2 emissions. The more pollution your car produces, the higher your road tax will be. In the UK, road tax rates vary depending on:
- Engine size
- Fuel type (Petrol, Diesel, Hybrid, Electric)
- CO2 emissions
For example, electric cars pay zero road tax, while cars with high CO2 emissions will have a higher tax rate.
2. Car Insurance
Car insurance costs depend on several factors, including:
- Age of the car: Newer cars tend to cost more to insure.
- Car type: High-performance or luxury cars are more expensive to insure.
- Driver’s age and experience: Younger drivers often face higher premiums.
- Car safety features: Cars with better safety ratings may have cheaper insurance.
How to Find a Car with Low Road Tax and Insurance
When searching for a used car with cheap road tax and low insurance, look for vehicles with:
- Small engines (1.0L – 1.4L) – Cars with smaller engines tend to have lower emissions and lower tax rates.
- Low emissions – Cars with low CO2 emissions generally have lower road tax.
- Cheap to repair and maintain – Cars that are inexpensive to repair often have cheaper insurance premiums.
- High safety ratings – Cars with good safety features (e.g., airbags, anti-lock braking systems) are cheaper to insure.
Now that you know what to look for, let’s dive into the best used cars in the UK for cheap road tax and affordable insurance.
Top Used Cars with Cheap Road Tax and Insurance in the UK
1. Ford Fiesta (1.0L)
The Ford Fiesta is a perennial favourite in the UK, and for good reason. It’s reliable, efficient, and cheap to run. The 1.0L EcoBoost engine is particularly economical, producing low CO2 emissions, which means low road tax.
- Road Tax: Around £20-£30 per year (for the 1.0L EcoBoost model)
- Insurance: Cheap, especially for younger drivers, starting from around group 5-8.
Why it’s Great: The Fiesta has great fuel economy, low running costs, and is affordable to insure, making it a perfect first car or a budget-friendly choice for anyone.
2. Toyota Aygo
The Toyota Aygo is another excellent choice for those seeking a cheap-to-run, used car. Its small size, low emissions, and excellent fuel economy make it perfect for urban driving.
- Road Tax: Typically £0 per year for the lowest-emission models.
- Insurance: Very low, starting from group 1 for the 1.0L model.
Why it’s Great: The Aygo is small, nimble, and very cheap to maintain. It’s a fantastic choice for city drivers looking to save on insurance and road tax.
3. Honda Jazz (1.2L)
The Honda Jazz is well-known for being reliable and efficient. Its small engine size (typically 1.2L or 1.4L) keeps the CO2 emissions low, which results in low road tax.
- Road Tax: Around £20 per year for the 1.2L model.
- Insurance: Affordable, especially for drivers with a clean driving record, starting from group 5-7.
Why it’s Great: The Honda Jazz is extremely practical and reliable. It’s a great choice if you want a car that’s easy to park, inexpensive to run, and durable over time.
4. Volkswagen Up!
The Volkswagen Up! is a city car with a compact design and low emissions, making it an excellent choice for anyone looking to keep road tax and insurance costs down.
- Road Tax: £0 per year for the low-emission models.
- Insurance: Very cheap, with groups starting from 1.
Why it’s Great: The Up! is small, stylish, and efficient, with an easy-to-drive nature that makes it perfect for young drivers and urban commuters.
5. Skoda Citigo
The Skoda Citigo is another small city car, closely related to the VW Up! It offers similar benefits, such as low CO2 emissions, excellent fuel economy, and very affordable running costs.
- Road Tax: Typically £0 per year for models with low emissions.
- Insurance: Cheap, especially for the 1.0L engine, starting from group 1.
Why it’s Great: The Citigo is practical, budget-friendly, and perfect for city driving. Plus, it shares much of its technology with the VW Up! but usually comes at a lower price.
6. Hyundai i10
The Hyundai i10 is a compact city car that offers great value for money. With its small engine and low emissions, it qualifies for cheap road tax and low insurance premiums.
- Road Tax: Around £20-£30 per year.
- Insurance: Starts from group 1-4, making it affordable for most drivers.
Why it’s Great: The i10 is a well-rounded car with great reliability, decent equipment levels, and excellent fuel efficiency.
7. Citroën C1
The Citroën C1 is a small car that’s perfect for tight budgets. With its efficient engine and compact size, it’s very easy on your wallet when it comes to both road tax and insurance.
- Road Tax: £0 per year for low-emission models.
- Insurance: Starting from group 1-2.
Why it’s Great: The C1 is a simple, no-frills car that gets you from A to B with minimal running costs. It’s a good option for new drivers or anyone looking to keep costs down.
Other Factors That Affect Road Tax and Insurance Costs
When choosing a used car with cheap road tax and insurance, don’t forget to consider the following:
Fuel Type
- Petrol cars generally have lower road tax rates than diesel cars.
- Hybrid and electric cars often qualify for zero road tax, making them ideal if you’re looking to save on both insurance and tax.
Car Age
Older cars are often cheaper to insure because they have a lower market value. However, be cautious about the age of the car—very old cars can become expensive to repair, which may increase your overall costs.
Car Safety Features
Cars with better safety features (such as airbags, anti-lock brakes, and good crash-test ratings) are often cheaper to insure. Look for models with good safety features to keep your premiums down.
Conclusion: Best Used Cars for Cheap Road Tax and Insurance
Finding a used car with cheap road tax and low insurance doesn’t have to be a challenge. The Ford Fiesta, Toyota Aygo, Honda Jazz, and Volkswagen Up! are just a few examples of budget-friendly options that will save you money in the long run.
When shopping for your next used car, always consider factors like engine size, emissions, and safety features. By choosing a car with a smaller engine and lower emissions, you can significantly reduce your road tax and insurance costs.
Remember:
- Look for small engine cars (1.0L-1.2L).
- Consider cars with low CO2 emissions for cheaper road tax.
- Prioritize cars with high safety ratings for cheaper insurance premiums.
By choosing the right car, you’ll enjoy lower road tax, cheaper insurance, and a car that’s affordable to run. Happy car hunting!
