How Much Does It Cost to Run an Electric Car? (Vs an ICE)
Find out how much electric car ownership costs compared to an ICE vehicle in 2024
It can cost significantly less to run an electric car (EV) than a petrol or diesel car (ICE). When you make the switch from an ICE to all-electric power, you can save on:
- Recharging
- Road Tax
- Other Emissions Charges
However, you may end up paying more for:
- Insurance
- Maintenance
Electric Car Running Costs
Recharging
If you choose to install a home charging point, you will pay your standard rate per kWh (Kilowatt hour) as per your energy tariff (around 22.36p per kWh). If you use a public charging point, the price will vary but is still significantly cheaper than petrol or diesel. As of January 2024, you will pay just over £1.45 per litre, on average, for petrol, and around £1.54 per litre of diesel.
A public electric charge point is much more affordable. As of June 2024, you can expect to pay around 56p per/kWh for a slow/fast charger and 80p per kWh for rapid/super rapid charger. As the average electric car uses a 62 kWh battery, you can fully charge an EV for just £34.72 using a fast/slow AC charger - significantly less than filling the average ICE fuel tank (50 litres costing £74)!
This means you can recharge an EV for a lot less than it costs to refuel an ICE. However, one potential downside to owning an electric vehicle is that there are far more petrol stations up and down the UK than there are electric vehicle charging points, so sourcing a charging point can be tricky if you don’t know where to look.
Road Tax
Electric cars are zero-emissions vehicles, so are exempt from road tax under the 2017 rule changes. A car's road tax is calculated due to the amount of CO2 emissions they produce - a car that produces over 255g/km of CO2 would have to pay as much as £2,605 in road tax per year.
What’s more, EVs that cost over £40,000 avoid an extra charge. All ICEs worth £40,000+ must pay an extra £390 a year every year for 5 years from the second time the vehicle is taxed. EV drivers always pay £0 - a huge difference in running costs.
Other Emissions-Based Charges
Electric cars do not have to pay in order to drive through:
- The Congestion Charge Zone in London
- Clean Air Zones (CAZ)
- Low-Emission Zones (LEZ)
- Ulta-Low Emission Zones (ULEZ)
This makes them appealing for drivers who live in cities that have these zones.
Plus, driving an electric car is much more environmentally friendly than driving an ICE. Petrol and diesel cars produce harmful emissions which can negatively impact your health, so choosing to run an electric car can be better for your well-being and save on running costs.
Insurance
Electric cars are more expensive to insure than the equivalent ICE. This is because they have a higher value, need specialist maintenance and parts and have expensive batteries fitted. As a result, insurance companies see them as higher-risk vehicles.
Here are the insurance groups for 5 popular ICE models & the insurance groups for 5 popular EVs. For context, insurance group 1 is the cheapest and group 50 is the most expensive.
Data from NimbleFins and is accurate as of June 2024.
ICEs
- Vauxhall Corsa - Group 12
- Mercedes-Benz A Class - Group 15
- Volkswagen Polo - Group 1
- Volkswagen Golf - Group 12
- Nissan Qashqai - Group 12
EVs
- Tesla Model 3 - Group 48-50 (Average insurance price = £903)
- Audi E-Tron - Group 43 - 50 (Average insurance price = £858)
- Kia Niro - Group 28-29 (Average insurance price = £440)
- Nissan Leaf - Group 21 - 28 (Average insurance price = £428)
- VW ID.3 - Group 18 - 30 (Average insurance price = £424)
Maintenance & Repairs
You may find that an electric car service costs more than an ICE service, but that the cost is offset by the need for less frequent maintenance. Other than a yearly service and MOT, you can save on EV servicing costs because there are no oils, fluids or fuel filters to change, the parts last longer and there are fewer mechanical components to go wrong. Most notably, brake parts last longer because of the regenerative nature of EV braking systems.
However, an electric car service costs more because of the need for specialist mechanics, parts and equipment, which can only be found in a small proportion of UK garages. Prices should decrease when the sector becomes more competitive (more qualified mechanics).
ICE repair costs can also be much more expensive than the EV equivalent. Due to the way an electric car works, there is never any need for a timing belt replacement, clutch replacement or head gasket repair - three uncommon but very expensive repair jobs.
Depreciation
Something else you may want to consider is the fact that petrol cars depreciate faster than their electric counterparts. However, that doesn't mean that EVs don't depreciate in value.
As technology evolves over time, there are currently concerns surrounding electric vehicle battery degradation. Combined with the unpredictable future of the demand for electric vehicles, this can help to explain why electric vehicles depreciate faster. You may not think that this should be factored in at the buying stage, but it is worth thinking about your car in terms of what it can do for you, both now and in the future.
The battery in an electric car is designed to last, and electric car batteries tend to come with long-lasting warranties. When electric car batteries do start to degrade, this should not have a huge impact on the quality of acceleration or the range your vehicle is able to reach.
Is There a Government Grant to Install a Charging Point at Home?
Many manufacturers include a free Type 1 or Type 2 charging cable when you buy a new electric car, but not all include a home charging station in the price. Fortunately, the Government also provides an Electric Vehicle Homecharge Scheme (EVHS) which will fund up to 75% of the installation cost of your home charging point.
In April 2022, the EVHS closed to homeowners (including people with mortgages) in single-unit properties, such as bungalows, and detached, semi-detached and terrace housing. The scheme remains open to homeowners who live in flats and people in rented accommodation.
Which is Cheaper to Run - an Electric Car or an ICE?
Petrol cars may be cheaper to buy initially, but running costs are higher, and they can have a more negative impact on the environment.
Meanwhile, electric vehicles can be cheaper to charge at a public service station than a petrol car is to fill up. Electric vehicles require less frequent maintenance, but it can be harder to find a public charging point, and insurance costs can be higher.
Read More
How Long Does it Take to Charge an Electric Car?
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How Can I Afford an Electric Car?
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How Much is an Electric Car?
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