New cars with free insurance

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

BuyaCar team
Nov 5, 2019

Choosing a brand new car is never the cheapest way to put a new set of wheels on the drive, but if you can't resist the appeal of picking the colour and extras on your car, nabbing one with a year's free insurance could save you up to £1,000 or more. The exact savings depend on the car, your driving history and where you live, but who wouldn't want to eliminate the hassle of getting insurance sorted?

Better still, the savings you'll make by getting your first year's insurance thrown in mean you can 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.

Be aware, however, that deals that have insurance thrown in are likely to cost you more per month than those that come with other discounts, so make sure to shop around. 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 the 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 remaining. 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 but want to cut the interest bills on your finance to nothing, 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, and 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 £250 per month - depending on the cost of insurance. Citroen and DS have a similar scheme, known as SimplyDrive. Care by Volvo is another "all-inclusive" package, but prices are considerably more expensive, starting at more than £450 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. But 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.

 

New cars with free insurance

These offers are open to drivers aged 18 or over. 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. A clean driving record is usually required, too.

However, for those experienced motorists with low insurance costs anyway, 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.

New Citroen C1 with insurance included

The Citroen C1 looks great on paper with low cash prices, a deposit contribution discount and a year's free insurance thrown in for those who order one before the end of the year. However, the cheapest eligible C1 will cost you £177 per month on a four-year PCP finance contract (with a £1,000 deposit and 10,000-mile-per-year limit). That's expensive for a city car and the entry-level version of the larger Skoda Fabia, is just £131 per month with the same contract terms.

That means that over four years the Skoda - which comes with 0% APR, also known as interest-free credit - saves you £2,166 or £46 every month. Depending on your premium, that saving could potentially be large enough to cover the cost of your insurance for the entire length of the contract.

If you really want to make big savings, though, going for a 2019 pre-registered version of exactly the same Citroen C1 as above - that has covered just 25 miles - could cost just £127 per month (with matching contract terms). That's a saving of £2,350 for a practically identical car. Go for a low-mileage 2017 version, however, and that could cost only £77 per month - saving you £100 per month, or £4,700 in total.

More details of Citroen SimplyDrive

Peugeot 108 with insurance included

The 108 is just one of the Peugeots available on the company’s Just Add Fuel scheme, which 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 payments rise for higher risk drivers. 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.

More details of Peugeot Just Add Fuel

DS 3 Crossback with insurance included

DS is part of the same company as Peugeot and Citroen, so its cars are available with a SimplyDrive agreement, which includes insurance - as well as tax, servicing, breakdown cover and finance payments - in one monthly amount.

The DS 3 Crossback is just one of the models available. It's the same concept as Peugeot's Just Add Fuel, and can cut insurance costs, but higher risk drivers will pay more than low-risk motorists.

With all those costs - including insurance - bundled in, though, don't expect to get a low monthly payment.

More details of DS SimplyDrive

Citroen C3 with insurance included

Another Citroen available on the manufacturer's SimplyDrive scheme, the C3 offers more space than the C1 city car, as well as useful optional extras including an integrated dashboard camera.

Monthly costs are higher than those of the smaller C1, so most young drivers can expect to pay between £300 and £350 per month. This drops to below £300 for some drivers aged 25 or over, but the exact price will depend on the insurance premium, how much deposit you put down, the length of the contract and the mileage allowance you go for.

Again, if you need the lowest payments, go for a used C3 and you'll save yourself more than enough to cover the cost of insurance.

More details of Citroen SimplyDrive

Volvo XC40 and V60 with insurance included

Volvo's free insurance package focuses less on saving you money and more on reducing the hassle of having a car. The Care by Volvo package includes insurance, servicing, repair costs, replacement tyres, breakdown cover and even a replacement windscreen if the original becomes chipped.

Prices are not cheap for a Volvo V60 Estate, starting at £469 per month. The package is based around a three year lease agreement, so you'll have to return the car at the end of the contract.

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 enough to cover the cost of car insurance.

 

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