Tax and ownership costs
Insurance Group 1 and 2 Cars: The Cheapest UK Groups Explained
Groups 1 and 2 sit at the bottom of the UK car insurance scale. Here is what those ratings mean, which kinds of cars usually qualify, why the exact trim matters, and how to check a used example before you buy.
TL;DR: Groups 1 and 2
What groups 1 and 2 mean
UK insurers have long used a shared vehicle rating from 1 to 50. Thatcham Research and the Group Rating Panel score cars on repair cost, parts prices, performance, safety, security and related risk. Lower numbers mean lower vehicle risk.
- Group 1: the lowest possible traditional rating.
- Group 2: still in the cheapest band, usually the same class of small hatchback with a slightly different risk score.
For the full 1 to 50 system, security letters and broader brackets, use the UK insurance groups 1 to 50 guide.
Group 1 vs group 2
Insurance group 1 compared with group 2
| Point | Group 1 | Group 2 |
|---|---|---|
| Place on the scale | Lowest traditional group | Second-lowest traditional group |
| Typical cars | Entry city cars and base trims | Similar city cars and nearby trims |
| Premium effect | Lowest vehicle starting point | Still cheap, small step up from group 1 |
| Buyer fit | New, young and budget drivers | Same audience when the exact trim lands here |
In practice, the gap between group 1 and group 2 is often smaller than the gap created by your own driver profile. A 19-year-old in a group 1 car can still pay more than a 45-year-old in a group 8 car.
Typical group 1 and 2 cars
Exact ratings change by year, engine and trim, so treat model names as examples, not guarantees:
- Hyundai i10 base petrol versions
- Kia Picanto entry engines
- Volkswagen Up!, SEAT Mii and Skoda Citigo 1.0 petrol versions where still listed
- Fiat Panda and similar small city hatchbacks in base form
- Some older Ford Ka, Toyota Aygo, Citroën C1 and Peugeot 108 versions
Why insurers like these cars
- Low power: modest engines reduce performance-related claim severity.
- Cheap parts and repairs: common city cars are usually faster and cheaper to fix.
- Lower replacement value: write-off settlements tend to cost insurers less.
- Security and safety fit for the class: meeting the expected standard helps keep the group down.
Newer cars may also carry a Vehicle Risk Rating on a 1 to 99 scale. Many used group 1 and 2 buys still quote against the classic group number, which is why those searches remain so common.
What still raises the premium
Buying an insurance group 1 or 2 car helps, but it is only one lever:
- Young or newly qualified driver status
- High-risk postcode or overnight parking
- Previous claims, faults or convictions
- High annual mileage or business use
- Modifications, non-standard alloy wheels or engine changes
- Choosing a low voluntary excess that looks cheap until the quote lands
If convictions are part of the problem, see how penalty points affect insurance. If you are comparing cover structures rather than car groups, see two policies on one car and insuring a car you do not own.
Buying a low-group used car
- Shortlist exact trims that genuinely sit in group 1 or 2.
- Run the registration to confirm identity, fuel type and engine size match the advert.
- Read MOT history and mileage before you travel.
- Get insurance quotes on that specific car before you pay a deposit.
- If the deal still looks right, decide whether a full history check is needed before money changes hands.
A cheap insurance group does not fix a clocked odometer, unresolved MOT fails or a messy ownership story. Pair the group search with a proper plate check.
Check the car before you insure it
Before you commit to an insurance group 1 or 2 used car, confirm the public record matches the advert and that the running costs still make sense.
Sources
- Thatcham Research vehicle risk and group ratingThatcham Research
- Association of British InsurersABI
- Vehicle insurance rulesGOV.UK
FAQ
What are insurance group 1 cars?
Insurance group 1 cars sit at the bottom of the traditional UK 1 to 50 scale, so they are usually the cheapest to insure all else being equal. They are typically small, low-powered petrol city cars that are inexpensive to repair and replace.
What is the difference between insurance group 1 and group 2?
Both are in the cheapest band. Group 1 is the lowest possible rating. Group 2 is one step higher, still among the least expensive cars to insure, but a specific trim or engine can move a model between those groups.
Are group 1 and group 2 cars good for new drivers?
Often yes, because the vehicle risk starting point is low. Your age, postcode, claims history, mileage and excess still decide the final quote, so a group 1 car is not a guaranteed cheap policy on its own.
Do all versions of a model stay in group 1 or 2?
No. A 1.0 litre base trim may sit in group 1 or 2, while a turbo, sportier trim or different gearbox of the same badge can sit several groups higher. Always check the exact version, not just the model name.
Have UK insurance groups changed for new cars?
The familiar 1 to 50 groups still matter for many cars already on the road. Newer models are increasingly assessed with Thatcham's Vehicle Risk Rating on a 1 to 99 scale. For used city cars most group 1 and 2 buyers want, the classic group number still drives many quotes.
How do I check a car before choosing a low insurance group?
Confirm the exact make, model, engine and year from the registration, then compare insurance quotes for that version. Use Caroat to check MOT history, mileage and tax status before you buy a cheap-to-insure used car.