No. A smaller engine can reduce fuel use or insurance in some cases, but total total running cost depends using that car together with how you use it.
A struggling engine is not automatically economical
On fast roads or with a heavily loaded car, a very small engine may work hard. fuel use in normal driving can narrow the gap suggested by official figures.
Insurance does not follow engine size perfectly
Performance matters, but so do many other vehicle and driver factors. Quote the versions you would actually buy.
Choose adequate, not excessive
The sensible target is enough performance for your normal journeys without paying unnecessarily for power, tyres and equipment level you do not need.
Compare a few sensible engine choices with real insurance prices; the smallest engine is not automatically the cheapest overall.
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