New cars with free insurance

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

BuyaCar team
Nov 12, 2021

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

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 baring 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 £570 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 108 with insurance included

The Peugeot 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 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.

MORE DETAILS OF PEUGEOT JUST ADD FUEL
PEUGEOT 108 BUYERS' GUIDE

Peugeot 308 with insurance included

The Peugeot 308 is another of the Peugeots available on the company’s Just Add Fuel scheme. Only certain models are available for younger drivers. This hatchback is perfectly suited to families, with a range of efficient engines and impressive boot space.

MORE DETAILS OF PEUGEOT JUST ADD FUEL
PEUGEOT 308 BUYERS' GUIDE

Peugeot 5008 with insurance included

It's not just small cars that are available on Peugeot's Just Add Fuel plans. The 5008 (above), the smaller 3008, and even the Rifter and Traveller, are all part of the selection.

The 5008 is an attractive alternative to SUV rivals like the Skoda Kodiaq and Seat Tarraco, as well as people carriers like the Ford Galaxy and Citroen Grand C4 SpaceTourer. Its high-tech dashboard design and striking looks make it an appealing option to younger, growing families who need plenty of space.

MORE DETAILS OF PEUGEOT JUST ADD FUEL
PEUGEOT 5008 BUYERS' GUIDE

Volvo XC40 with insurance included

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 £570 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.

MORE DETAILS OF CARE BY VOLVO
VOLVO XC40 BUYERS' GUIDE

Volvo XC90 with insurance included

If you like the idea of being able to change your car more frequently than Peugeot's PCP-based deal allows, then Care by Volvo might make more sense to you. Things get a little pricey at the top of the range, though; the plug-in hybrid XC90 can cost more than £1,000 per month, and that's just with 30 days of free insurance coverage for drivers aged 25 or older.

If you're looking for a seven-seat SUV, you might find it cheaper to finance an XC90 separately, and to source your own, more affordable, insurance deal. Remember to compare like-for-like quotes with the same terms and conditions, as well as other, similar models like the Audi Q7, Mercedes GLE and BMW X5 to find the best value option for you.

MORE DETAILS OF CARE BY VOLVO
VOLVO XC90 BUYERS' GUIDE

Citroen C1 with insurance included

Citroen C1 front three quarters view

Similar to Peugeot's Just Add Fuel option, Citroen SimplyDrive is another way to pay for a brand new car with costs for insurance, road tax, servicing and breakdown cover included. How good the deal is depends on your age and driving experience, but a 23-year-old with two years' no claims discount can expect to see their monthly payments increase by around £50 if they choose to include insurance costs.

Drivers between the age of 18-20 will be required to fit a black box to their car if they wish to include insurance as part of their SimplyDrive deal, and can again expect to see their monthly payments increase, this time by around £100 on top of the cost of the car itself.

The good thing is, these SimplyDrive contracts are flexible if you decide you'd be better off sorting out your own insurance. You can stop paying the insurance part of your monthly payments at any time without penalty, but you'll have to be sure you insure the car yourself before you continue driving it.

CITROEN C1 BUYERS' GUIDE

 

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