New research into car ownership costs has highlighted a significant and growing difference in the cost of owning and running an electric vehicle (EV) compared to a petrol-powered model.

The overall cost of running an EV in the UK is now estimated at £1,154 per year, 50.2% lower than the £2,316 annual cost of running a conventional petrol car over the same period.*

Analysis evaluated road tax charges, fuel/recharging expenses, servicing costs, and insurance premiums.

Get the keys

The largest disparity in running costs comes from fuel versus electricity expenses.

A petrol driver covering 10,000 miles per year would spend approximately £1,209 on fuel, whereas an EV driver, charging at home using a dedicated EV tariff, would only spend £174 annually.

These figures are based on the current average EV tariff of 7.55p/kWh.

Further savings can be achieved with the lowest available EV tariff of 5p/kWh, which reduces the annual home charging cost to just £115.

 

 

According to Andersen’s data, 92% of EV charging occurs at home, so the cost advantage over petrol is substantial.

Even when 8% of charging occurs on ultra-rapid motorway networks (averaging 81p/kWh), EV owners still spend significantly less than petrol car drivers.

Servicing costs also favour EVs.

The latest data from The Car Expert indicates that annual servicing for an EV averages £232, compared to £295 for a petrol vehicle.

Over five years, this equates to a total servicing cost of £3,857 for an EV versus £5,514 for a petrol car—a difference of nearly 30%.

You pay your money

However, insurance remains a higher cost for EV owners despite declining prices.

January 2025 data from Confused.com shows that EV insurance premiums are, on average, £125.81 higher per year than those for petrol vehicles.

EV insurance costs fell 18% year-on-year in 2024, and according to the SMMT, the UK saw a 21.4% rise in battery electric vehicle (BEV) ownership.

Therefore, further reductions in premiums are expected.

Currently, EV drivers benefit from zero road tax, whereas petrol car owners pay a minimum of £190 per year, depending on CO2 emissions.

BVut, starting from 1 April 2025, new EVs will incur a £10 road tax charge in the first year, rising to £190 per year thereafter.

 

 

Embracing change

The UK’s transition to EVs is accelerating, with over 1.1 million BEVs now on UK roads, reflecting a 44% increase since 2023.

Public charging infrastructure is also expanding rapidly, with the number of rapid and ultra-rapid charging stations surpassing 12,000, a 36% increase in the last year.

These improvements in infrastructure and cost savings are expected to encourage more UK drivers to switch to electric vehicles.

David Martell, CEO of Andersen, stated: “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.”

He added: “We appreciate that there is a great deal of conflicting and often confusing advice around EV ownership”.