EV running costs ‘50% less’ than equivalent ICE car

The overall cost of running an electric vehicle (EV) is now £1,154 per annum, which is 50.2% less than the £2,316 equivalent cost to run a conventional petrol-driven car over the same period, new research suggests.

Charge point manufacturer Andersen calculated the running cost for an EV and petrol-powered car by assessing the latest road tax charges, average fuel/recharge costs, typical servicing costs, and average insurance premiums.

It is with refuelling/recharging that the difference in running costs is greatest. The average petrol car driver covering 10,000 miles a year would spend £1,209 on fuel, compared to the £174 that an EV driver would spend on electricity to power an EV over the same distance.

The figures are based on an EV driver who smart charges at home using a dedicated EV tariff, the current average of which is 7.55p/kWh. 

The cost savings are even greater if an EV driver charges at the cheapest available rate of 5p/kWh, giving an annual home charging cost of just £115, says Andersen. 

Analysis of charging activity among Andersen customers suggests that the majority (92%) of EV charging takes place at home, with only occasional (8%) charging sessions on the public charging network. 

If 8% of charging were to take place on the UK’s ultra-rapid motorway charging network, with average costs of 81p/kWh, and the remaining 92% took place at home on a dedicated EV tariff, EV drivers would still pay nearly a quarter less for their motive power than petrol drivers.

Regarding servicing costs, typical cost per annum for an EV is £232, compared to £295 for an equivalent petrol-powered car, according to new data from the Car Expert. 

After five years of ownership, the cost disparity is even greater, with EV servicing costing a combined £3,857 – a third less than the £5,514 required to service a petrol car over the same period.

However, insurance costs are currently higher for EVs than for petrol cars. January 2025 figures from Confused.com indicate that EV drivers are likely to pay £125.81 more per year, on average, compared to a petrol car driver. 

However, EV insurance costs are currently on a downward trajectory. Confused.com reports that insurance costs for EVs fell by 18% year-on-year in 2024 alone and, with a 21.4% rise in BEV ownership in 2024, it predicts average premiums for plug-in cars will fall further.

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