Car ownership costs for electric vehicles are now half of equivalent petrol-powered models, new analysis reveals.

The biggest difference in running costs comes from recharging at home

EV charging brand Andersen calculated the overall ownership cost for an EV and petrol-powered car by assessing latest road tax charges, average fuel / recharge costs, typical servicing costs, and average insurance premiums.

The study revealed the overall cost of running an electric vehicle stands at £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.

Andersen compared running costs of road tax, refuelling / recharging, servicing and insurance for a Vauxhall Corsa 1.2-litre petrol and Corsa Electric, both driving 10,000 miles per year.

The biggest difference in running costs comes from refuelling versus recharging. An 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. These 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.

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.

Servicing costs, based on data from The Car Expert, also show EV savings. The typical cost per annum for an EV is £232, compared to £295 for an equivalent petrol-powered car. 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.

Andersen’s data crunch also takes in current savings on road tax. At the moment, EV drivers pay zero road tax, whereas petrol cars incur a minimum £190 fee – potentially much higher where the CO2 emissions are greater. From 1 April 2025, a new EV will be subject to £10 road tax in year one; all EVs at least one year old will be liable for a £195 charge. EVs registered from 1 April and costing more than £40,000 will also face the additional rate ‘Expensive Car Supplement’ VED, which will be £425 per year for five years from the second time the vehicle is taxed.

Where EVs lose out currently for running costs compared to petrol cars is on insurance. 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. But 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 registrations in 2024, it predicts average premiums for plug-in cars will fall further.

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.

“We appreciate that there is a great deal of conflicting, and often confusing, advice around EV ownership; our Concierge service is available to anyone eager to understand more about how an electric vehicle could work for them.”