Best Used Cars with Low Insurance & Maintenance Costs

For most buyers in the used car market, the sticker price is not the real deal breaker, it’s what follows after. A car might look like a bargain upfront, but if you’re constantly paying through your nose for insurance premiums and workshop visits, the “budget buy” suddenly doesn’t feel cheap at all. That’s why smart buyers today look at the total cost of ownership, not just the amount they pay the seller. This brings us to a category that often flies under the radar: used cars with low insurance and low maintenance. 

These cars save you money not just at the fuel pump or at the service bay, but also when you renew your policy every year. Pairing the two costs together gives a more honest picture of affordability and helps avoid surprises down the line.

Why Insurance and Maintenance Matter Together?

Insurance and maintenance are two sides of the same coin. Insurance is unavoidable as you need it legally, and premiums rise if spares are costly or the car is accident-prone. Maintenance, meanwhile, is what keeps the car running day to day, and small differences here can snowball into huge savings over five years.

Look at it this way: a hatchback that costs ₹3,500 a year to service but demands ₹15,000 in annual premiums isn’t really cheaper than a rival that needs ₹4,500 in service but only ₹9,000 for insurance. When you combine the two numbers, that’s when the truly economical options start standing out. And in the used space, these savings only get sweeter.

1. Maruti Suzuki Celerio

The Maruti Suzuki Celerio is another gem for those who want hassle-free running. Thanks to the tiny K10C engine it shares with the Alto K10 and S-Presso, spares are cheap and every Maruti workshop in India knows the car inside out. A typical annual service bill hovers around ₹3,000–₹3,500 for used examples, making it one of the lowest in this list.

On the insurance front, the Celerio is equally light on the pocket. For a 2020 model, you’re looking at about ₹9,100–₹10,500 per year for a comprehensive plan. That’s lower than the Swift or Baleno, yet you still get a car with decent cabin space, AMT convenience if you need it, and excellent fuel efficiency. For city users who want predictable costs, the Celerio is a textbook example of used cars with low maintenance and low insurance rolled into one.

• Average Annual Maintenance Cost: ₹3,000–₹3,500

• Average Annual Insurance Cost (2020 model): ₹9,100–₹10,500

   

2. Maruti Suzuki Alto K10

The Maruti Suzuki Alto K10 has always been India’s go-to hatchback for affordability, and in the used space, it continues that legacy. The car’s maintenance is straightforward, with parts like filters, clutch components, and even body panels priced lower than most rivals. On average, owners spend about ₹3,000 per year to keep a K10 running smoothly, which includes routine services at 10,000 km intervals.

Insurance premiums are also minimal, thanks to the car’s compact size and low market value. A 2020 model typically costs between ₹8,800–₹10,500 annually for comprehensive insurance. This is among the lowest in the market, making the Alto a prime choice for buyers who don’t want ownership costs to spiral beyond the purchase price.

• Average Annual Maintenance Cost: ₹3,000

• Average Annual Insurance Cost: ₹8,800–₹10,500

   

3. Maruti Suzuki Wagon R

The Wagon R sits a segment above the Alto and Celerio, yet it still manages to keep running costs very low. Its tall-boy design makes it a hit with families, while the 1.0-litre and 1.2-litre petrol engines are both frugal and reliable. Average annual service bills usually fall between ₹3,500–₹4,000, which is impressive considering the added size and cabin space compared to the Alto.

For insurance, a 2020 Wagon R typically costs around ₹9,200–₹15,100 per year for comprehensive cover. That’s slightly higher than the Celerio, but still very affordable compared to premium hatchbacks. When you factor in Maruti’s strong resale value, the Wagon R becomes an easy recommendation among used cars with low insurance and low maintenance options.

• Average Annual Maintenance Cost: ₹3,500–₹4,000

• Average Annual Insurance Cost: ₹9,200–₹15,100

   

4. Hyundai Grand i10

The Hyundai Grand i10 is one of those hatchbacks that blends practicality with refinement, and it doesn’t punish owners with high upkeep costs. Routine services average around ₹3,000–₹4,000 per year, thanks to widely available spares and Hyundai’s competitive service pricing. For a car that feels more premium inside than an Alto or Wagon R, that’s remarkable value.

On the insurance side, 2020 Grand i10 models generally carry an annual premium of ₹12,000–₹13,500 for comprehensive cover. It’s slightly more than the Celerio or Alto, but you’re also getting more features and a bigger cabin. 

Average Annual Maintenance Cost: ₹3,000–₹4,000
 Average Annual Insurance Cost (2020 model): ₹12,000–₹13,500

5. Renault Kwid

The Renault Kwid has built its reputation as one of the most affordable cars to own in India, and it continues to deliver on that promise in the used market. Regular service costs are extremely low, averaging about ₹2,500–₹3,200 per year. Parts like filters, brake pads, and bulbs are cheap to replace, and even major components are priced lower compared to segment rivals.

When it comes to insurance, the Kwid also scores well. A 2020 model typically costs around ₹11,600–₹18,000 annually for comprehensive insurance, making it cheaper than most Hyundai and Tata alternatives. Add in its SUV-inspired design and wide availability, and the Kwid is one of the most attractive used cars with low insurance with both low maintenance and insurance costs.

• Average Annual Maintenance Cost: ₹2,500–₹3,200

• Average Annual Insurance Cost (2020 model): ₹11,600–₹18,000

   

6. Tata Tiago

The Tata Tiago has built a reputation as one of the smartest budget buys in the used car market. Safety is a big draw here (it scored 4 stars in Global NCAP), but what makes it shine in this list is how affordable it is to own year after year. Its 1.2-litre petrol engine is simple, durable, and doesn’t demand too much in upkeep. A typical yearly service, including oil, filters, and labour, lands at around ₹4,500–₹5,000, which is pretty reasonable for a hatchback in this space.

Insurance is where the Tiago punches even harder. A 2020 petrol model generally costs about ₹14,500–₹21,000 annually for comprehensive coverage. Compare that to bigger hatchbacks or SUVs that can push past ₹25,000, and you’ll see why the Tiago’s balance of safety, low premiums, and simple maintenance has made it a favourite among value-conscious buyers.

• Average Annual Maintenance Cost: ₹4,500–₹5,000

• Average Annual Insurance Cost: ₹14,500–₹21,000

   

Important: Do note that the maintenance costs may vary depending on the condition, age and location of the car. On the other hand, insurance costs may vary depending on the Insured Declared Value of the vehicle. 

Summary

Buying a car is one thing, but keeping it affordable year after year is what really matters. That’s where these options shine. Each of these used cars with low insurance choices proves that ownership doesn’t have to be expensive, as they combine reasonable service bills with insurance premiums that don’t eat into your savings. From the ever-reliable Alto K10 to practical picks like the Wagon R, Celerio, Grand i10, and Kwid, the focus here is on cars that are genuinely cheap to run, not just cheap to buy.

If you’re planning to stretch your rupee further, sticking to these tried-and-tested names will ensure your second-hand purchase feels less like a gamble and more like a smart investment.