New cars with free insurance 2023
Save on a brand new car AND get free insurance. Or nab a top value nearly new or used car deal and save enough for insurance and change

Choosing a brand new car is never the cheapest way to put a new set of wheels on the driveway, but if you can't resist the appeal of picking the colour and extras on your car, nabbing one with free insurance could save you up to £1,000, and sometimes even more. The exact savings depend on the car, your driving history and where you live, but if you fancy eliminating the hassle of getting insurance sorted, this is probably going to be worth your while.
Better still, the savings you'll make by getting your first year's insurance thrown in mean you could put down a more substantial deposit on your finance deal, either cutting your monthly payments or helping you to upgrade to a higher-specification model for the same monthly payment.
New cars with free insurance
- Peugeot 208
- Peugeot 2008
- Peugeot 308
- Peugeot 3008
- Peugeot 508
- Peugeot 5008
- Volvo S60/V60
- Volvo S90/V90
- Volvo XC40
- Volvo XC60
- Volvo XC90
Younger drivers, who tend to have the highest insurance premiums, can save the most from these promotions but may need a black box fitted to monitor their driving. Drive in a sedate manner and these can often enable you to access cheaper premiums in future, though if you race around and constantly break the speed limit, you're likely to find your premium increasing, or even end up with your policy being cancelled. A clean driving record is usually required, too.
However, for those experienced motorists with low insurance costs in the first place, this kind of deal may not have the same benefit. In fact, you may be better off looking for a standard finance option with a larger deposit contribution discount.
All deals come with their own terms and conditions, which you’ll need to check before deciding which option works best for you.
It's worth bearing in mind, however, that a new car with free insurance thrown in is still likely to cost you more per month than one that's available with a substantial discount, so the convenience of a free insurance scheme is not always the cheapest option. And if you want the best value, you're likely to be better off financing a nearly new car with a list price of many thousands less than a new equivalent and sorting out your own insurance with the money you save.
And if that still stretches your budget too far, going for a used model will save you even more - especially if you choose a car with three years' warranty remaining or a car with five years' warranty left. Do this and you can take advantage of far lower finance costs - saving you enough to cover the cost of insurance for the length of the contract, provided you don't live in a super-dangerous area or have a history of writing off cars - and you shouldn't have to worry about unexpected repair bills.
Meanwhile, since there are very few free insurance deals to choose from, if you're happy sorting out your own insurance and are happy to cut your costs elsewhere, check out our roundup of the best 0% APR finance - also known as interest-free credit - offers instead.
Another option that could get you a new car with insurance bundled in is going for an all-in finance deal, known as Just Add Fuel, offered by several manufacturers. These finance packages include the cost of insurance in your monthly payments - plus servicing, tax and breakdown cover - making it easier to budget. Of course, your monthly payments are higher with one of these than with a standard finance agreement, but they can still be better value than buying insurance separately.
Peugeot offers several cars on Just Add Fuel deals, starting at less than £300 per month - depending on the cost of insurance. Citroen and DS have a similar scheme, known as SimplyDrive, while Care by Volvo is another all-inclusive package, but prices for the latter are considerably more expensive, starting at around £600 per month.
Both free insurance and Just Add Fuel deals are limited to brand-new cars and can often be combined with other discounts. Even so, you're still likely to pay less by opting for a used car and arranging your own insurance. We don't offer brand-new cars here at BuyaCar, but if you're interested in the savings you could make with a used alternative, you can start your search here.
Meanwhile, if you have your heart set on a new car with insurance bundled in, read on for our list of cars you can get with free insurance.
Peugeot Just Add Fuel
Peugeot’s Just Add Fuel scheme combines the cost of financing, servicing and taxing your car, plus breakdown cover and insurance into one monthly payment.
It’s not free insurance as such, because the monthly payments are higher than for the car alone and rise for higher-risk drivers, due to the increased cost of insuring the car. But it can be a cheap option, particularly for young motorists. Premiums are fixed for three years as long as your circumstances don’t change, so that gives you some extra peace of mind, too.
Peugeot 208 with insurance included
Since Peugeot discontinued the 108 city car, the 208 supermini is the smallest car you can now buy from the French automaker. It was recently refreshed and shared many of its parts with the also recently refreshed Vauxhall Corsa. You can also buy an electric e-208 which uses a 136hp electric motor and 50kWh battery - the same electric setup found in most of Peugeot’s electric vehicles.
Peugeot 2008 with insurance included
The Peugeot 2008 is another of the Peugeots available on the company’s Just Add Fuel scheme. This includes petrol and diesel versions as well as the electric e-2008, capable of over 200 miles on a full charge. There are no plug-in hybrid versions, though, like the similarly-sized Renault Captur PHEV.
Peugeot 308 with insurance included
Peugeot is offering its Just Add Fuel deal with insurance on the brand-new 308 in both hatchback and estate forms, with deliveries expected in the first few months of 2022. Engine choices are familiar, and consist of 1.2-litre petrol and 1.5-litre Diesel engines. There’s a pair of 1.6-litre plug-in hybrids with 180hp or 225hp, and an electric version is expected to go on sale as early as next year.
Peugeot 3008 with insurance included
Peugeot’s 3008 crossover was one of the French carmaker’s first cars to use its ‘i-Cockpit’ design, which consists of a small low-mounted steering wheel. This cabin layout has spread across the entire range by now, and while some drivers find it hard to get comfortable, others prefer the more ergonomic and engaging position.
Peugeot 508 with insurance included
The 508 is a great affordable alternative to popular company cars like the BMW 3 Series and Mercedes C-Class, similar in price to the Vauxhall Insignia Grand Sport and Ford Mondeo. There are petrol and diesel versions, as well as plug-in hybrids and some performance-orientated plug-in hybrids capable of 0-62mph in 5.2 seconds. All are available in saloon or estate form, though expect age restrictions to apply to the fast ‘PSE’ models.
Peugeot 5008 with insurance included
Drivers looking for a seven-seater SUV are inundated with choice as trends continue to move in the direction of SUVs (rather than the dated MPV style). While it looks as fresh as the rest of the range, it has been in production for several years by now, demonstrated by the lack of any plug-in models. The same is true of many of its rivals, like the Skoda Kodiaq.
Care By Volvo
Volvo's free insurance package focuses less on saving you money and more on reducing the hassle of running a car. The Care by Volvo package includes servicing, repair costs, replacement tyres, breakdown cover and even a replacement windscreen if the original becomes chipped. Insurance cover extends to 30 days on all flexible plans, but does not cover the 36-month plans.
Drivers must be aged 25 or over, having held a full UK or EU driving license for at least 12 months, and with a maximum of three fault claims and three minor convictions in the past five years. After the first month, drivers can pay to continue with their coverage or source insurance deals elsewhere.
Prices are not cheap, however, as Volvo's upmarket range is expensive and the cost of each additional element adds to the monthly payment. Monthly payments start at around £600 per month, though you do get valuable extras such as wear and tear maintenance and replacement tyres covered, so there should be little else to pay for bar fuel.
Fear not, if that's beyond your budget. Click below to check out the best value used Volvo deals, that should shrink your monthly payments by more than enough to cover the cost of car insurance.
Volvo S60/V60 with insurance included
Since Volvo stopped making the V40 hatchback, the S60 saloon is the smallest car you can buy, along with the V60 estate which is almost identical. Both have been available with petrol and diesel engines (you can recognise these by their ’T’ and ‘D’ badges respectively), as well as more recently a range of mild hybrids (badged with a ‘B’). A pair of plug-in hybrids (T6 and T8) complete the lineup.
Volvo S90/V90 with insurance included
These cars are similar in size to saloon and estate versions of the BMW 5 Series, Audi A6 and Mercedes E-Class, and offer similarly high levels of comfort. As is the case with all modern Volvo cars, a large portrait-oriented touchscreen media system takes centre stage.
Volvo XC40 with insurance included
The XC40 is Volvo’s smallest SUV, designed to take on the Mercedes GLA, BMW X1 and Audi Q3. As well as the usual suite of petrol, diesel, mild hybrid and plug-in hybrid options, there’s a pair of electric versions. An economical ‘Single Motor’ version and a ludicrously quick ‘Twin Motor’ version capable of 0-62mph in under five seconds. The newly-launched C40 is also included in the Care By Volvo package.
Volvo XC60 with insurance included
Drivers looking for a comfortable family SUV are faced with a whole range of choices, from budget crossovers to more expensive offerings. Sitting somewhere on the higher end of that price scale is the XC60 which hopes to tempt drivers away from premium German alternatives like the BMW X3, Mercedes GLC and Audi Q5. The usual choice of engines is available, including plug-in hybrid options.
Volvo XC90 with insurance included
Volvo’s most expensive offering is the XC90, a seven-seater SUV that is unusually powered by 2.0-litre engines (most SUVs of this size often have a larger engine on offer, too). D4 and D5 diesel versions are well-suited to the car’s weight, though petrol versions see mpg figures plummet. The T8 plug-in hybrid version promises well over 100mpg in day-to-day driving, but fail to charge it regularly and 30mpg could be optimistic.
*Representative PCP finance - Ford Fiesta:
48 monthly payments of £192
Deposit: £0
Mileage limit: 8,000 per year
Optional final payment to buy car: £2,923
Total amount payable to buy car: £11,926
Total cost of credit: £2,426
Amount borrowed: £9,500
APR: 9.9%
BuyaCar is a credit broker, not a lender. Our rates start from 6.9% APR. The rate you are offered will depend on your individual circumstances.