Cars with free insurance

Forget trying to haggle for free car mats: finding a car that comes with a full year’s free insurance could save you more than £1,000 in your first year of ownership.

Without a large insurance bill to cover, you could have a bigger deposit for a finance deal and upgrade to a higher-specification model — or save up for the following year’s policy.

All manufacturer free insurance offers are limited to brand new cars and can sometimes be combined with other discounts. This may make a new car, with the latest technology and safety features, cheaper than a used one, but that’s not always the case.

The following cars are currently available with free insurance:

Mini Hatchback with free insurance
Volkswagen Polo with free insurance
Seat Ibiza with free insurance
Volvo XC40 & V60 with insurance
Citroen cars with insurance
DS cars with insurance
Peugeot cars with insurance
The offers are open to drivers aged 18 or over. Young drivers, who tend to have the largest premiums, can save most from these promotions but may need a black box fitted to monitor their driving. A clean driving record is usually required too. The promotion is worth less if you’re an experienced motorist with a low premium. In fact, you may be able to save more on the same car by choosing a different deal with a larger cash discount.

Other manufacturers, including Citroen and Peugeot, offer finance packages, known as Just Add Fuel deals that include insurance as part of your monthly instalment. Prices are higher than with a standard finance agreement, but can still be better value than buying insurance separately.

All deals come with their own terms and conditions, which you’ll need to check before signing up.
A mini version of Volkswagen’s Golf, the all-new Polo raises the bar when it comes to supermini quality, with its soft-touch plastics, glass-finish touchscreen and comfortable seats.

With this, comes a year’s free comprehensive insurance for buyers aged 18-80. If you’ve just passed your test and are under the age of 25, then a black box will be fitted to the car. More experienced drivers in the same age bracket will need to download a phone app that monitors their driving.

You’ll need to order your car before July 1 and have it delivered before the end of September to qualify. The offer is available across the Polo range, but the sportiest Polo GTI is not available with free insurance if you are under 25.

Discounts on the new Polo can rise to more than £3,000. You may not get the full saving if you also take the free insurance offer, but you are still likely to benefit from a substantial reduction.
The new Seat Ibiza is one of the best superminis that you can buy. It’s spacious, comfortable and nippy, as well as offering up-to-date technology. All but entry level-cars have a dashboard touchscreen with Apple CarPlay and Android Auto, while advanced safety features are available.

Order an Ibiza before July 2 and have it delivered by the end of August to qualify for a year’s free insurance — as long as the terms and conditions allow. You’ll need to be aged between 18 and 80. Young and inexperienced drivers will need to fit a black box to monitor their driving, and few motoring convictions are allowed.

You’ll also benefit from generous discounts that bring the price of the entry-level Ibiza S down to under £11,000 and reduce the cost of the mid-range Ibiza 1.0 95 SE to less than £12,000, saving £2,700. Manufacturer finance is available too, but free insurance isn’t available with leasing.
The Mini Hatchback has just been updated, which means that every car now gets a dashboard screen, new technology options and rear lights containing the outline of the Union Flag.

It’s as distinctive as ever and remains fun to drive, thanks to its zippy engines and nimble cornering.

The latest Mini is also available with what’s called a year’s optional inclusive insurance. Qualifying drivers who lease or finance a Mini One Hatchback (either the 3- or 5-door car), will receive a year’s comprehensive insurance. The image above shows the higher-specification Cooper S.

Cars need to be ordered by June 29 this year and they must have been delivered by September if you want to benefit from the offer. It’s open to drivers aged 18 to 80; restrictions include a limit of three points on your licence and no serious driving convictions. Under-25s with less than three years’ driving experience will need a black box fitted to the car; you’ll need to download a phone app to monitor your driving if you’ve had your licence for more than three years and are under 25.
The 208 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
Insurance with the Citroen C3 doesn’t so much come free as included in a fixed price, as part of Citroen’s SimplyDrive programme — which also includes other cars in Citroen’s range.

In the same way as Peugeot’s Just Add Fuel offer, this rolls your car finance payments together with tax, servicing, insurance and breakdown cover, so you only have to make one payment a month to cover them all. Young drivers can save on insurance costs this way.
More details of Citroen SimplyDrive
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 DS3 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.
Volvo’s offer may not strike you as a particularly good deal, even if your insurance premiums are sky-high because you’ll have to pay £629 a month to lease the new XC40. This Care by Volvo package does cover everything that you would imagine and more — including a concierge who can pick up your car and refuel it for you (you’ll need to pay for the petrol or diesel). Insurance is part of the two-year leasing deal as well.

Unsurprisingly, it’s being marketed on its convenience rather than cost. At first, you’ll only be able to take advantage if you are 25 or over and live within the M25.