Electric Car Running Costs Explained

Widespread electric car adoption is no longer a pipedream. EVs are becoming more and more popular by the day, and they are now some of the most sought-after vehicles on the market. 

In 2025, over 473,000 new fully electric cars were registered in the UK, a 23% market share of all new cars sold that year (Zapmap). And with the government's ZEV mandate requiring manufacturers to increase EV sales year on year through to 2030, this momentum will only increase. 

EVs have always been associated with lower running costs, but with costs rising across every sector, it raises the question: are electric cars actually cheaper to run?

In this guide, we'll cover every significant cost involved in running an electric car, to help you decide whether switching is right for you.

Before we get into the numbers, it's worth establishing what's actually involved in running any car, regardless of fuel type. EVs aren't as different from petrol and diesel cars as you might think, and most of the same costs apply:

• Charging (the EV equivalent of fuel)
• Insurance
• Servicing
• Replacement tyres
• Road tax

If you’re buying instead of leasing, you’ll also have other factors to consider including depreciation. Business drivers will need to consider BiK tax too, which is another area where EVs have a significant edge. 

Just like petrol and diesel prices which vary from supplier to supplier, the cost to charge an electric car in the UK varies between home, work and public charging. 

Home charging is by far the cheapest option, and for daily drivers and commuters, it accounts for the majority of their charging. 

Under the current Ofgem price cap, the average electricity rate is around 27.69p per kWh. Based on a typical EV efficiency of around 3.5 miles per kWh, that works out at roughly 8p per mile. 

If you're on a dedicated EV tariff with off-peak overnight rates, that figure can drop even further. Some tariffs offer electricity as low as 7-9p per kWh during off-peak hours, bringing your cost per mile down to around 2-3p.

Looking for more information? You can read more in our Electric Car Charging Costs guide. 

Public charging might be more practical when you're on the go, but it's unfortunately more expensive. 

According to Zapmap's latest price index, the average pay-as-you-go cost on the public network is around 54p per kWh for standard chargers, rising to 79p per kWh for rapid and ultra-rapid chargers. This is equivalent to roughly 16p and 24p per mile. 

This is still competitive with regular fuel, but narrows the advantage compared to home charging. 

Based on current UK pump prices of around 157p per litre for petrol and 181p per litre for diesel. 

EVs have a reputation for generally being cheaper than their petrol and diesel counterparts, but in terms of insurance, EVs typically cost more. This is because:

• Higher value - EVs generally cost more upfront, which means a higher insured value and a larger potential pay-out for the insurer in the event of a write-off. 
• Battery and repair costs - The battery is the most expensive component in an electric car and can push up insurance premiums. 
• Specialist technician costs - Not every garage or mechanic can work and repair an EV. Technicians need specialist training, which pushes up labour costs and can extend repair times. 

For more detail on what affects your premium and how to find the best deals, see our Electric Car Insurance guide. 

EVs have fewer moving parts, which means no engine oil to change, no timing belt to replace, and no clutch to wear out. On top of that, regenerative braking can significantly reduce wear on brake pads and discs, culminating in much lower servicing costs. 

Comparing EV and petrol models, there's sometimes up to a 50% decrease in servicing costs, which is nothing short of excellent (Zapmap). 

EVs are heavier than petrol and diesel cars due to their battery packs, and they deliver torque instantly, which can put more strain on tyres over the course of a lease and lead to faster tyre wear.

Because EV tyres are designed to handle heavier loads and higher torque, they cost a bit more to replace, typically around £150 to £250 per tyre, compared to £90 to £130 for a standard petrol car tyre.

That said, the cost gap is manageable and unlikely to significantly dent your overall running cost savings, and a few practical habits can prolong your tyres, such as maintaining correct tyre pressure, driving smoothly, and rotating them regularly.

Back in the glory days, EVs were exempt from paying road tax. But new legislation brought in on the 1st April 2025 ended this, and now EV drivers must pay: 

• £10 for the first year 
• After that, the standard rate of £200 a year 

The good news for leasers is that road tax is included in your monthly payment when you lease through Nationwide Vehicle Contracts, so you don't need to worry about sorting it yourself or remembering when it's due.

You can read more in our guide: Taxing a lease vehicle. 

If you're thinking about getting an electric company car, the argument is compelling. 

The Benefit-in-Kind rate for EVs is just 4% for the 2026/27 tax year, rising to 5% in 2027/28. By comparison, a petrol car could easily hit 30% BiK depending on its CO2 emissions. 

For a higher-rate taxpayer, that difference can amount to thousands of pounds a year. 

For most drivers, an EV will lead to significant savings.

They are cheaper on fuel and servicing, which are two of the biggest costs for drivers. Insurance and tyre maintenance is slightly higher, but not enough to offset those savings for the majority of drivers. 

To show what that looks like in practice, we've compared the three-year running costs of two versions of the same car, the Vauxhall Astra Electric and the Vauxhall Astra Griffin 1.2 petrol. Based on 8,000 miles a year, with the EV driver charging 80% at home and 20% on the public charger network. 

Our assumptions: 

• Astra Electric efficiency - 3.8 miles per kWh 
• Home charging rate - 27.69p per kWh 
• Public standard charging rate - 54p per kWh 
• Astra Griffin 1.2 petrol efficiency - 45mpg
• Petrol prices - 158p per litre 
• Road tax - In line with standard rates 
• Annual servicing - £110 for the EV, £275 for the petrol 

Over three years, the Astra Electric costs around £2,437 less to run than the petrol equivalent, with monthly savings of roughly £68 per month. 

That is driving almost entirely by home charging. If the Astra EV relied primarily on public charging, the advantage would be narrowed significantly. 

NOTE: The costs above are an estimate. Individual costs will vary depending on driving style, tariff, and location. 

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