Millions of drivers can knock car insurance bill from £995 to £241

Drivers could slash car insurance bills to just £241 with the cheapest vehicles to insure. Peugeot took home the top spot with its 206 model having average car insurance costs of just £241, in a Cost of Living boost for many across the UK.

In second place was the Porsche Boxster for £243, followed by the Mazda MX-5 for as little as £249. Tom Banks, spokesperson for Go.Compare, highlighted the importance for drivers to know that their car insurance quotes depend on a number of factors.

He continued, saying: “The kind of driver you are, the area you live in, and where your car is parked all have an effect, as well as which car you drive. Your choice of vehicle can have a big impact on the cost of your insurance - typically, more powerful, sporty cars are more expensive to insure - whereas cars with smaller engines can be more affordable, not just in terms of insurance, but running costs too.

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Drivers can now expect to pay £995 for their car insurance, on average – the highest price ever in the UK – according to the latest index published by the price comparison website Confused.com..

Banks said: “It’s definitely worth taking the time to research car insurance before you commit to a car purchase - as this data shows, sometimes the cost of insuring your car isn’t always what you would expect.” The top 10 cheapest cars to insure in the UK see the Peugeot 206 - £241 followed by Porsche Boxter - £243 and Mazda MX-5 - £249.

In fourth spot was the Toyota iQ which will cost drivers £262 to insure, while the Citroen Xsara will cost £272. In sixth spot was the Smart Fortwo which costs £282 while in seventh, the Suzuki Grand costs £283. The Land Rover Freelander will cost £288.

The Renault Kangoo will cost £297 while the Fiat Panda will set drivers back £299, the research has also found. The study was released by GoCompare this week amid the Cost of Living crisis.