Best free insurance car deals 2021

Free car insurance on a new car could help make that driving dream a reality, especially if you’re a young driver

Looking for new cars that come with free insurance is like wading into murky water. There are plenty of offers out there claiming to provide free insurance, but the fact of the matter is that you’re highly likely to end up paying more than if you bought insurance separately.

This especially true if you are a younger driver, when it’s more important than ever to make sure that the car-plus-insurance deal you’re considering really is value for money.

While many third party providers offer cars with free insurance, here we’re sticking to those free insurance deals that have close ties with the manufacturers. The main benefit here is that you can streamline the number of parties you deal with, which can save you time in the long run.

It’s not just free insurance you’ll find on the market either. Several manufacturers offer car finance packages, whereby you pay one monthly payment to cover all motoring costs. These ‘just add fuel’ deals allow drivers to pay for insurance, servicing, road tax and breakdown cover in one easy payment.

Peugeot and Volvo are the key players here, although they’re not alone. Below we’ve listed a selection of the free insurance car deals that are available right now to get you on your way.

Cars with free insurance

Citroen: SimplyDrive

Several Citroen dealers offer a simple three-year finance package that covers the cost of a car, insurance, servicing, roadside assistance, warranty and road tax. Offers are available on most of its range, but the ones available to you will be dependent on your age. Citroen only offers its just add fuel deals to drivers who are 18 or over, and even then you will need to install a telematics box until you reach 21.

Citroen C1

  • Dealer: Robins & Day 
  • Model: Citroen C1 Live 3dr* 
  • Customer deposit: £2,500 
  • Monthly payment: £210.71 
  • Number of payments: 36 
  • Annual mileage: 6,000 
  • Excess mileage charge: 2.0p per mile 
  • Optional final payment: £3,737.00 
  • APR: 0.0%

The Citroen C1 is a stylish little city car that can be bags of fun to drive. Its peppy engine and small proportions help make it feel nice and nimble on the road, and it’s a massive improvement on the old C1 in terms of interior quality. However, the C1 isn’t as strong as some rivals in the class, especially in terms of space.

Citroen C3 Aircross

  • Dealer: Robins & Day 
  • Model: Citroen C3 Aircross SUV* 
  • Customer deposit: £2,500 
  • Monthly payment: £215.37 
  • Number of payments: 36 
  • Annual mileage: 10,000 
  • Excess mileage charge: 2.0p per mile 
  • Optional final payment: £7,482.00 
  • APR: 3.9%

Citroen did a good job with the styling of the C3 Aircross, making it stand out in an increasingly congested market place (not that funky styling is everyone’s cup of tea). The interior brings with it a certain feel-good factor, while the ride is comfortable and the 410-litre boot is very practical indeed.

*All quotes are based on a policy with the youngest driver being aged 21.  

Peugeot

While Peugeot’s service isn’t packaged in the same high-end wrapping as Volvo’s effort below, you do get all the essentials for motoring (minus the fuel of course) in one easy monthly payment: three years’ insurance, three years’ tax, three years; warranty, three years’ roadside assistance and - you guess it - three years’ routine servicing.

Peugeot’s deal should be an excellent option for younger drivers who are struggling to cover the costs of a car, insurance and maintenance. As with Citroen, Peugeot only offers these deals to drivers who are at least 18, and a telematics box will need fitting until you are 21. Restrictions also apply on which cars are available based on your age, however the range of models included in Peugeot’s Just Add Fuel scheme are quite broad.

Peugeot 108

  • Model: Peugeot 108 Active 1.0l* 
  • Customer deposit: £2,550.00 
  • Peugeot deposit contribution: £2,150 
  • Monthly payment: £234.40 
  • Number of payments: 37 
  • Annual mileage: 10,000 
  • Excess mileage charge: 3p per mile 
  • Optional final payment: £4,196.00 
  • APR: 5.9%

The Peugeot 108 and its sister cars from Toyota and Citroen brought style to the city car sector back when they were launched. The new 108 improved the look and feel of the interior compared to the outgoing model, with plenty of personalisation options to give drivers that bespoke feeling so often overlooked at the end of the market. The back seats are a bit of a squeeze, but that won’t be a dealbreaker for most.

Peugeot 208

  • Model: Peugeot 208 Active Premium 1.2l* 
  • Customer deposit: £2,500.00 
  • Peugeot deposit contribution: £1,150.00 
  • Monthly payment: £318.40 
  • Number of payments: 37 
  • Annual mileage: 10,000 
  • Excess mileage charge: 4.2p per mile 
  • Optional final payment: £7,320.00 
  • APR: 5.0%

The new Peugeot 208 arrived in 2020, bringing with it a much-needed refresh both inside and out. The Ford Fiesta has it beaten for driving involvement and the ever-popular MINI has more desirability, but the Just Add Fuel deals help make the small French hatchback stand out almost as much as its new signature headlights. Strong performance is matched with very good fuel economy, although you’ll need to pay extra for the latest equipment.

Peugeot 5008

  • Model: 5008 Active Premium 1.2l PureTech* 
  • Customer deposit: £4,000 
  • Peugeot deposit contribution: £1,600 
  • Monthly payment: £469.24 
  • Number of payments: 37 
  • Annual mileage: 10,000 
  • Excess mileage charge: 9.0p per mile 
  • Optional final payment: £14,279.00 
  • APR: 5.9%

The Peugeot 5008 went through a majestic transformation in just one generation: from boxy MPV to sleek SUV. It has a functional, well equipped and stylish interior, and even has enough room for seven occupants. While it loses out to the Skoda Kodiaq for driving experience, the Peugeot does enough to stand out as something a little different in a swamped SUV market.

*All quotes are based on a policy with the youngest driver being aged 21.  

Volvo

Volvo has a scheme called ‘Care by Volvo’, which bundles together roadside assistance and servicing into what amounts to a monthly car subscription. This differs from the more common Personal Contract Purchase (PCP) deal as there are no upfront costs and you can hand the car back with just three months’ notice at any point after the 30-day trial period. Included in these 30 days is comprehensive insurance, after which you’ll have to organise your own.

The monthly costs involved will be prohibitive for almost all young drivers, partly because Volvo is a more premium brand but also because the lack of a structured 24-, 36- or 48-month agreement means Volvo has to look after its investment with a steeper monthly price. While this won’t suit those who have not long passed their test, more experienced (and, let’s face it, more affluent) motorists might see the appeal.

Volvo XC40

  • Model: Volvo XC40 Momentum 
  • Monthly rental: £589.00 
  • Annual mileage: 10,000

The Volvo XC40 is one of the more comfortable small SUVs on the market, with a line-up of engines that deliver great performance. The interior is a delight too, making every journey a pleasant and relaxing experience.

Very few of its rivals can come close to its refinement, cruising comfort, or clever packaging: the 460-litre boot is more generous than you get in many other cars this size, while legroom is ample too. Whether this justifies the £589 per month subscriptions fee is another matter…

If you decide that included insurance isn’t for you, why not take a read of our tips and advice article on how to save money on insurance quotes?

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