Electric cars are £546 cheaper to run than petrol vehicles

Ferrari chief discusses shifting gear into electric motoring

The average annual running cost for an electric vehicle is £546 lower than a petrol-fuelled vehicle, according to new data from Compare the Market.

Electric cars cost an average of £1,298 to run for 12 months compared to £1,844 for a petrol vehicle.

The data took into account the price of insurance, refuelling or recharging and the cost of Vehicle Excise Duty (VED).

The general cost of motoring has risen over the last years, and paired with the cost of living crisis, many motorists have tried to cut down on their driving.

For electric cars, the cost of motoring has risen by £158 on average, mainly due to the price increase of car insurance in recent months.

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On average, an EV driver can expect to pay up to £687 for their car insurance, with prices rising £121 year-on-year.

In comparison, those driving an internal combustion engine vehicle have seen prices jump by £101 since last year, up to £659.

Insurers are facing higher repair costs, with the Association of British Insurers (ABI) finding that the cost of vehicle repairs has jumped by 33 percent over the last year to £1.5billion.

The price has been more heavily levied onto electric vehicles given that EVs are pricier to purchase up front, in addition to repair costs in the event that a battery needs to be replaced.

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Julie Daniels, motor insurance expert at Compare the Market, said drivers switching to EVs will be happy to see they are cheaper than petrol alternatives.

Electric car owners are also spared from paying VED until 2025 and do not have to put up with constantly fluctuating petrol and diesel prices.

She continued, saying: “However, the significant upfront cost of buying an electric car and installing a home charging point will prevent many drivers from being able to afford this option, especially during the cost-of-living crisis. 

“The rising cost of car insurance for electric vehicles and higher road taxes from 2025 may also make switching to an electric vehicle less appealing. 

“Any drivers concerned about running costs could potentially cut the cost of their car insurance by shopping around ahead of their policy ending. Motorists could save up to £411 by switching through Compare the Market.”

From 2025, electric cars will have to pay VED, in addition to the expensive car supplement, which is currently set at £390, requiring them to pay it for the first five years of registration.

Sales of electric vehicles have increased 58.7 percent year-on-year, with popularity ever increasing, according to the Society of Motor Manufacturers and Traders.

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