Used Vans with the Lowest Insurance Costs
Looking to save money on your next van? Whether you're a tradesperson, a start-up business owner, or a delivery driver in need of a dependable vehicle that won’t break the bank on insurance, this guide covers the smartest van choices in 2026. Below, you'll discover:
Which van models consistently fall into the lowest insurance groups
Why engine size, safety features, and age impact insurance cost
Top-rated used vans for young drivers and budget-conscious businesses
The difference between pre-2016 and post-2016 insurance groups
Where to find quality used vans at great prices
From well-known names like the Citroën Berlingo, Ford Fiesta Van, and Peugeot Partner, to compact workhorses like the Nissan NV200 or Vauxhall Astravan, we’ve got you covered with a smart, no-nonsense approach. Let’s get into it.
What Makes a Van Cheaper to Insure?
Before diving into van recommendations, it's essential to understand what insurers look for when pricing a van policy.
“Generally, the smaller and simpler the van, the lower the insurance premium.”
Here are the key factors influencing van insurance cost:
Insurance Group Rating – Vans are ranked from group 1 to 50, or 1 to 20 for older models. Lower numbers = cheaper insurance.
Engine Size – Smaller engines (1.2–1.6L) cost less to insure.
Safety & Security Features – ABS, parking sensors, alarm systems and immobilisers reduce theft risk and lower premiums.
Repair Costs – More affordable or widely available parts = cheaper premiums.
Vehicle Size – Small and compact vans are easier to drive, park, and typically cheaper to fix.
Pre-2016 vs Post-2016 – Older models may fall in lower groups under the former 1–20 scale.
When you combine these factors, the result is a list of low insurance cost vans that work for both personal and commercial use.
1. Citroën Berlingo – A Consistent Front Runner
It’s no surprise that the Citroën Berlingo is one of the top picks for low insurance premiums. This compact van has long been a favourite among couriers, tradespeople, and new business owners.
The Berlingo often falls into insurance groups 1–5 for models pre-2016, and 21–33 for newer versions, making it one of the most cost-effective vans for insurance.
Why it stands out:
Available in a range of engine sizes (1.2L–1.6L)
Excellent fuel economy and low emissions
Strong safety record
Ideal for city driving and light deliveries
If you're hunting for a reliable used van with low insurance, this is a smart place to start.
2. Volkswagen Caddy – Premium Feel, Affordable Cover
The Volkswagen Caddy strikes the perfect balance between everyday usability and brand prestige. Though it's known for a slightly more refined interior, it still maintains reasonable insurance group rankings, typically 26–31.
Its small footprint and versatile design make it popular among young drivers and professionals who value style and functionality.
Key features:
Great fuel economy (up to 55mpg)
Excellent resale value
Easy to drive and park in urban areas
While the Caddy might not fall in the very lowest groups, its affordable van insurance makes it a top contender for those seeking quality without hefty premiums.
3. Peugeot Partner – The Berlingo's Sibling with Its Own Strengths
Sharing much of its DNA with the Citroën Berlingo, the Peugeot Partner is another standout when it comes to cheap vans to insure.
Insurance group details:
Pre-2016 models: Often between group 5–10
Post-2016: Can range from group 23–36
Why it works for budget-focused buyers:
Compact size suits tight urban environments
Good payload without going overboard
Shared parts with the Berlingo keep repair costs low
If you're looking for vans with low insurance groups but want to explore alternatives to Citroën, the Partner is a worthy candidate.
4. Renault Kangoo – A Hidden Gem for Cost-Conscious Drivers
The Renault Kangoo is a compact workhorse with a reputation for durability. With some older models dipping into insurance groups as low as 2, it’s one of the most economical vans to insure today.
What makes it appealing:
Excellent for start-up businesses and light commercial work
Available in both petrol and diesel variants
Option for fully electric version (for those targeting zero-emission zones)
For those balancing insurance savings with functionality, the Kangoo quietly punches above its weight.
5. Ford Fiesta Van – For Car-Like Driving on a Van Budget
Few vehicles blend car agility with van practicality as well as the Ford Fiesta Van. With insurance groups typically sitting between 21 and 29, it offers lower-than-average premiums, especially for a modern-looking vehicle.
Best suited for:
City-based businesses
Freelancers needing light cargo space
Young drivers looking to get started with commercial driving
Although discontinued, the Fiesta Van is still available on the used market, and remains one of the best vans for new drivers due to its approachable size and familiar drive feel.
6. Vauxhall Astravan – A Small Van with Big Insurance Savings
If your business doesn’t require large payloads or heavy-duty cargo space, the Vauxhall Astravan offers a compelling mix of comfort and economy. Based on the popular Astra car, it blurs the lines between a hatchback and a van — and insurers love it.
Insurance group highlights:
Pre-2016: Groups 2–3
Post-2016: Groups 16–31
For those prioritising lowest premium van insurance, the Astravan’s small engine size and compact design make it one of the best used vans for low insurance.
Who it’s ideal for:
Urban couriers and city service professionals
Young drivers or newcomers to van ownership
Those needing a van for light use with car-like handling
While it’s no longer produced new, the Astravan continues to offer excellent value on the used market for anyone hunting a low-risk van for insurance.
7. Toyota Hiace – Tough, Reliable, and Still Reasonable to Insure
Though it’s a bit of an old-school workhorse, the Toyota Hiace remains a favourite among buyers who need a van that just won’t quit. It may not be the flashiest option, but its insurance group rating of 6–7 (for pre-2016 models) makes it a smart pick for trades that demand reliability over modernity.
What makes it stand out:
Simple mechanics mean low repair costs
Strong 2.8L diesel engines for heavy-duty use
Surprisingly affordable van insurance quotes given its size
Because the Hiace was discontinued in the UK several years ago, you'll only find used models, but for many budget vans for business, this remains a practical, long-term solution.
8. Nissan NV200 – Compact Yet Surprisingly Spacious
The Nissan NV200 manages to deliver an impressive mix of cargo room and city-friendliness in a compact frame. With some models rated as low as insurance group 5, it’s an appealing choice for companies seeking efficient logistics at a lower price point.
Perfect for:
Delivery drivers covering urban or suburban areas
Fleet buyers needing reliable light commercial vehicles
Buyers looking for an affordable van insurance option
Fuel-efficient diesel engines and minimal maintenance issues make the NV200 a frontrunner for those comparing used commercial vans with cheap insurance.
9. Citroën Nemo – A City Specialist with a Wallet-Friendly Policy
If you're navigating narrow streets and tight delivery schedules, the Citroën Nemo deserves your attention. Its tiny footprint and efficient 1.3L diesel or 1.4L petrol engine keep running costs low, while insurance groupings between 3–7 (pre-2016) help seal the deal.
Why choose the Nemo:
Great for city driving and short trips
Surprisingly large boot space for its class
Among the cheapest vans to insure in the UK
For sole traders or small firms looking to compare van insurance premiums, this is one of the smartest choices out there.
10. Peugeot Bipper – Urban Delivery Work Made Simple
Another city-savvy van worth mentioning is the Peugeot Bipper, mechanically similar to the Nemo. It’s built for everyday use and typically fits into insurance groups 3–10 depending on the model and year.
Great for:
Start-up businesses that want to keep costs down
Local trades needing compact utility
Anyone looking for small vans with low insurance
For business owners ready to grow their fleet or upgrade their current van, the Peugeot range offers a wide variety of options with excellent fuel economy and low overall costs.
Bonus Mention: Mercedes-Benz Vans for Efficiency and Longevity
While not always the cheapest on paper, Mercedes-Benz vans — particularly smaller models like the Citan — offer exceptional value over time. With modern safety systems, strong build quality, and efficient engines, newer models are often placed in mid-range insurance groups, but offer more premium features that can balance the total cost of ownership.
If you want something a little more refined while still being practical for business, Mercedes deserves consideration.
Key Takeaway: Think Beyond the Sticker Price
While it’s tempting to focus solely on purchase price, van insurance cost can be a major long-term expense. That’s why selecting a van in a lower insurance group — especially for newer drivers or urban businesses — makes financial sense.
Whether you’re looking for a compact Peugeot Bipper, a dependable Citroën Berlingo, or a cost-effective Toyota Hiace, choosing wisely can lead to hundreds saved each year.
Understanding Insurance Groups: What They Really Mean
Choosing the right van isn’t just about mileage or monthly payments — it’s also about where it falls in the van insurance group rating system.
The lower the insurance group, the cheaper it usually is to insure.
In the UK, van insurance groups are designed to help insurers calculate risk and determine premiums. Here's a breakdown of how it works:
Pre-2016: Groups 1–20
Older vans were classified into a simple scale from 1 (cheapest) to 20 (most expensive) based mainly on:
Engine size
Vehicle weight
Cost of parts and repair
This system still applies to many used vans on the market today, making it easier to identify the cheapest vans to insure — especially for budget-conscious buyers or those browsing used vans under finance.
Post-2016: Groups 21–50
Modern vans are rated using a more refined scale, with more emphasis on:
Safety technology (e.g. autonomous braking, airbags, crash prevention)
Repair complexity
Security features
This means a newer van could still be affordable to insure if it has smart systems that reduce accident risk.
2026 and Beyond: Vehicle Risk Rating (VRR)
A newer system, the Vehicle Risk Rating (VRR), is being phased in to replace the traditional group system for new vehicles. It scores vans on:
Performance
Damageability
Repairability
Safety
Security
Though not fully adopted yet, most van insurance quotes in 2026 still rely on the traditional group structure — especially for used models.
How to Lower Your Van Insurance Premium: Expert Tips
Even the most cost-effective vans for insurance can be made even cheaper with the right approach. Here are our top tips for reducing your van insurance cost, no matter which model you drive:
1. Choose Vans in Lower Insurance Groups
This is the most straightforward way to start saving. Compact models like the Citroën Nemo, Ford Fiesta Van, or Vauxhall Corsa Van often fall in groups 1–5, making them the best vans for new drivers or city use.
2. Limit Annual Mileage
Lower mileage equals lower risk. If your usage is modest, be sure to state that when requesting quotes.
3. Install Safety & Security Features
Additional immobilisers, dash cams, or even simple steering locks can bring down your premium.
4. Park Off-Street
Insurers factor in where your van sleeps at night. If it’s parked in a garage or secure driveway, that’s a plus.
5. Pay Annually Instead of Monthly
This avoids interest or admin fees. If it’s manageable, paying in full can mean a noticeable discount.
6. Use Telematics (Black Box Policies)
Especially useful for young drivers, these monitor driving habits and can lower future premiums.
7. Shop Around & Compare
Prices can vary significantly. Even switching between providers each year can save you hundreds.
Best Use Cases for Low Insurance Vans
Let’s not forget — finding low insurance vans isn’t just about cost. It’s about aligning the right vehicle with the right purpose.
For Young Drivers
Models like the Peugeot Bipper, Citroën Berlingo, and Vauxhall Astravan are ideal for new drivers needing something affordable and manageable.
For City Couriers
Compact vans with great fuel economy and tight turning circles (e.g. Citroën Nemo, Nissan NV200) are perfect for urban deliveries and low-speed routes.
For Budget-Conscious Businesses
Used options from brands like Renault, Citroën, and Ford deliver the best value, often falling within low insurance groupings and offering wide availability of parts.
Final Thoughts: Choose Smart, Drive Smarter
Navigating the van market in 2026 requires a clear understanding of what drives insurance costs, and how to sidestep unnecessary expenses. Whether you’re after the lowest insurance premiums, or simply want to avoid a surprise at renewal time, choosing one of the cheap vans to insure listed in this guide is a smart first step.
At Carlton Motor Co, we specialise in matching drivers with practical, road-ready vans from leading manufacturers like:
Explore our full range of used vans, take advantage of flexible finance options, and get on the road with confidence — all while keeping your insurance budget in check.
FAQs: Used Vans with the Lowest Insurance Costs
1. Do electric vans cost less to insure than diesel or petrol vans?
Electric vans often have higher initial insurance costs due to their higher market value and specialised repair parts. However, some insurers offer green vehicle discounts, and lower running costs can help balance the overall ownership expense. For low-mileage, city-based businesses, electric vans can be worth considering despite the upfront premium.
2. Are vans more expensive to insure than cars?
Typically, yes — vans can be more expensive to insure than standard cars, especially if they’re used for commercial purposes. However, small vans or car-derived vans (like the Vauxhall Corsavan or Ford Fiesta Van) can fall into similar or even lower insurance groups than many compact cars, making them a budget-friendly choice for light-duty needs.
3. Does van colour affect insurance premiums?
While not a major factor, van colour can slightly impact insurance quotes. Common colours like white, silver, or grey tend to be cheaper to insure due to lower theft risk and repair costs. Bright or custom-painted vans might be rated higher by some insurers.
4. Can I get temporary insurance for a used van?
Yes. Temporary van insurance (from 1 day to 28 days) is available from many providers and is ideal for test drives, short-term projects, or borrowing a van. Just ensure the van meets insurer criteria (e.g. age, weight, value) and that your license is valid for that vehicle type.
5. Does business use affect my van insurance?
Absolutely. Using a van for work purposes — even occasional use — generally requires a commercial insurance policy, which can cost more than private use. That said, many policies can be tailored to specific trades, couriers, or part-time businesses to keep costs reasonable.
6. Is van insurance cheaper if I’m the only driver?
Yes, single-driver policies tend to be cheaper than multi-driver or fleet insurance. Limiting drivers to only those who need access to the van helps reduce perceived risk from the insurer’s point of view.
7. Do modifications increase van insurance costs?
Usually, yes. Any non-standard modification — including alloys, spoilers, signage, or interior fit-outs — can increase your insurance premiums. However, security modifications like alarm systems or deadlocks may actually reduce your insurance cost.
8. Are automatic vans cheaper or more expensive to insure?
Automatic vans can be slightly more expensive to insure due to higher repair costs and often being newer models. However, the difference is usually minor, and some insurers may view automatics as safer for city driving — which could help balance premiums.
9. Does a no-claims bonus from a car policy transfer to a van?
Not always. Some insurers allow transferring a no-claims bonus from a car to a van, but others treat them separately. It’s worth checking with your insurer — especially if switching between personal and commercial use.
10. What’s the best age for a van to get the lowest insurance?
Typically, vans that are 5–10 years old strike the right balance between low market value and modern safety features — keeping insurance group ratings low while still offering reliability. Very old vans might have lower insurance groups but could cost more to maintain or repair.