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
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.
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.
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.
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.
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.
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.
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.
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.
It takes longer to charge an electric car than an ICE - but how much longer? And how does the charge time differ depending on the source? Find out in this article.
It may work out cheaper overall to charge an electric car, but how does the price differ depending on your electricity provider and where you live? Find out all you need to know about how much it costs to charge electric cars here.
If you’re looking to buy an electric car but are worried you can’t afford it, don’t worry. There’s more than one way to drive an EV. We explain the Government grants, lease schemes and more flexible ownership options in this article.
Find out the price of every all-electric model available in the UK in this article. You can compare this against the average EV price, as well as the cheapest and most expensive, to find a model that suits your budget.
Find out more about what an electric car service includes, what maintenance an electric car needs, how much an electric car service costs and more in this article.
A key running cost for drivers who live or work in London is the Congestion Charge. If you're currently spending lots of money driving through this zone, an EV might be the best answer for you. Learn about why electric cars are exempt from the Congestion Charge and how to register a car in this guide.
Electric cars are considered cheaper to run than traditional ICE vehicles, but how much does it actually cost per mile? In this article, we provide a rundown of running costs, and provide some of the cheapest models to run, per mile.