EV running costs are 50% cheaper than a petrol car

Day-to-day running costs for electric cars are half those of an equivalent petrol model, according to new research.

The average EV owner could spend just £1,154 per year on energy, insurance, servicing and tax, compared with more than £2,300 for a petrol car, according to the study by home charger brand Andersen.

Its research looked at all the main costs of car ownership, comparing a Vauxhall Corsa Electric with a 1.2-litre petrol Corsa, and found that while EVs remain more expensive to insure, in all other areas, they offer potentially huge savings.

Refuelling and recharging gave the clearest benefits, with average charging cost around 15% of the average petrol bill. Andersen estimated that for a driver covering 10,000 miles per year, petrol bills would amount to £1,209. In contrast, Andersen estimated that EV owners could spend as little £174 per year on charging if they charge exclusively at home on an EV-specific tariff.

Andersen’s customer profile shows its drivers charge at home 92% of the time and use public chargers the rest of the time. Based on that split and an 81p/kWh charge for ultra-rapid public charging, EV owners still only pay £308.58 for 10,000 miles of motoring.

Regarding servicing, new data from The Car Expert suggests that the average yearly bill for an EV is £232, compared with £295 for an equivalent petrol car. As vehicles get older, that gap grows and after five years of ownership, EV servicing will have cost a combined £3,857 – a third less than the £5,514 required to service a petrol car over the same period.

However, insurance costs for EVs remain higher than that for petrol cars. January 2025 figures from Confused.com show that EV drivers pay an average of £125.81 more per year, than a petrol car driver. On the bright side, Confused also reports that EV insurance bills are falling and were down 18% in 2024.

David Martell, CEO of Andersen, said: “Our research shows definitively that electric vehicles are cheaper to own than petrol vehicles. To build increased momentum in the shift to clean electrified mobility, it is crucial that more UK drivers better understand true EV ownership costs – including ultra-low ‘smart’ charging tariffs, incredible savings on road tax and servicing, and rapid falls in insurance costs.”

Andersen’s figures are correct at the time of writing but, from April the gap will close as EVs become liable for car tax.

Currently EVs are exempt from any Vehicle Excise Duty (VED), saving owners a considerable sum. From April 1 2025, they will become liable in the same way as any petrol or diesel car.

Even, then, they will remain cheaper to run than their petrol equivalents. In their first year, they will attract a charge of just £10, and from year two will cost the same as a petrol model.