How Much Does it Cost to Run an Electric Car

For many UK homeowners, landlords and everyday drivers thinking about switching to an electric vehicle, one of the most important questions is how much it costs to run. While the purchase price of an EV is often discussed, the long-term costs of ownership are where electric cars can really start to show their value. Running costs include charging, maintenance, insurance, tax, and depreciation. This article explores what it actually costs to run an electric car in the UK, how it compares to petrol or diesel models, and what factors make the biggest difference to your overall expenses.

What Running Cost Really Means

Running cost goes beyond the electricity you use to charge your vehicle. It includes everything that contributes to keeping your car on the road safely and legally. For electric cars, that means electricity (home or public charging), servicing, insurance, Vehicle Excise Duty, depreciation, and other occasional costs like new tyres or wiper blades. While the upfront cost of an electric car may be higher, the savings made during daily use can more than make up for it over time.

Electric cars have far fewer moving parts than petrol or diesel vehicles. This means fewer things can wear out or go wrong. There are no oil changes, exhaust systems, or fuel filters to worry about, which helps keep annual maintenance costs lower. However, EVs still require regular tyre checks, brake inspections, and coolant maintenance for their battery systems.

Cost per Mile in the UK

The best way to understand how affordable electric driving can be is to look at the cost per mile. In the UK, the typical cost to drive an electric car is between 5p and 10p per mile, depending on your charging habits and electricity tariff.

Charging at home on a standard tariff of around 25p per kilowatt-hour can result in running costs of around 8p per mile. However, if you use a smart or off-peak EV tariff, you could pay as little as 7p per kilowatt-hour, which drops your cost to just 2p or 3p per mile. For a typical driver covering 10,000 miles a year, that means spending only around £300 annually on charging compared to around £1,900 on petrol for the same mileage.

Public charging tends to be more expensive. Rapid chargers can cost between 45p and 75p per kilowatt-hour, which means the cost per mile could rise to around 15p or more. While still cheaper than petrol, the savings are much smaller, so it’s best to use public chargers only when necessary.

Annual Running Costs

To estimate total running costs, let’s consider a typical UK driver covering 10,000 miles per year. Charging at home with an average cost of 8p per mile would total £800 annually. Maintenance for an electric car might cost another £200 to £300, as there are fewer components to service. Insurance varies depending on the model and driver but tends to be slightly higher for some EVs, adding another £500 to £700 per year.

Adding those together, you can expect annual running costs of around £1,500 to £1,800 for an electric car, compared to £2,800 to £3,500 for a petrol or diesel equivalent. Even when factoring in slightly higher insurance or depreciation, electric vehicles generally remain cheaper to run overall.

What Affects Running Costs

Several factors can influence how much your electric car costs to run each year. The biggest factor is your electricity tariff. Charging at home overnight on a dedicated EV plan can make a huge difference, particularly with suppliers offering rates as low as 7p per kilowatt-hour.

Your driving style also plays a part. Rapid acceleration, high speeds, and cold weather can reduce efficiency and increase electricity use. Cars with larger batteries or higher performance will naturally consume more energy per mile.

Maintenance also affects your annual spend. While servicing costs are lower, you’ll still need to budget for tyre replacements and occasional checks on brake fluid, filters, and coolant. Tyres can wear out faster on electric cars due to their heavier weight and strong torque, so replacing them every 20,000 miles or so is common.

Insurance and Tax

Insurance for electric cars can sometimes be slightly higher than average because replacement parts are still more expensive and not every repair shop has EV-trained mechanics. However, as EVs become more common, insurers are introducing more competitive rates. Comparing quotes and choosing specialist electric car insurance can help keep premiums reasonable.

In terms of tax, electric cars are currently exempt from Vehicle Excise Duty until April 2025, when the government plans to introduce a standard charge for all zero-emission vehicles. Even after that, EVs will still remain cheaper to tax than most petrol or diesel cars. Additionally, if you live in London or other low-emission zones, you won’t have to pay congestion or ULEZ charges, saving hundreds of pounds each year.

Servicing and Maintenance

Electric vehicles generally cost less to service because they don’t have components like spark plugs, clutches, or exhausts. A typical annual service might cost between £100 and £200, depending on the model. The main checks involve tyres, brakes, suspension, and the battery’s cooling system. Many EV owners also notice slower brake wear thanks to regenerative braking, which reduces maintenance costs even further.

Battery replacement, while expensive, is very rare. Most manufacturers guarantee their batteries for eight years or 100,000 miles, and data from the UK shows that well-maintained EV batteries often retain over 90 percent of their capacity after that time.

Depreciation and Resale Value

Depreciation is one of the biggest costs in car ownership, and electric vehicles are no exception. While earlier models lost value faster due to limited range and technology improvements, modern EVs are now holding their value better. As the used EV market grows and demand increases, depreciation rates are gradually stabilising.

Cars from well-known brands such as Tesla, Hyundai, and Kia tend to retain their value more effectively than smaller or lesser-known models. Battery health plays a significant role in resale value, so keeping your EV serviced and charged properly helps maintain its worth.

Ways to Reduce Running Costs

There are several effective strategies to make running an electric car even cheaper. Charging during off-peak hours is the most important, as night-time electricity rates can be less than a third of daytime prices. You can also take advantage of smart chargers that automatically schedule charging for the cheapest tariff periods.

If you have solar panels, you can reduce costs even further by charging your car directly from solar energy during the day. Some smart chargers can prioritise renewable electricity, meaning you can drive on solar power for free when the sun is shining.

Driving smoothly and planning routes can also reduce energy consumption. Avoiding hard acceleration, maintaining steady speeds, and using eco mode can extend your car’s range and lower costs.

Frequently Asked Questions

How much cheaper is it to run an electric car compared to a petrol car?

On average, electric cars cost around half as much per mile to run as petrol vehicles. Home charging on a low tariff can make driving an EV 60 to 70 percent cheaper overall.

Is maintenance really cheaper for EVs?

Yes, typically servicing costs are lower because there are fewer parts to maintain. You’ll still need to replace tyres and check brakes, but there’s no oil or exhaust system to worry about.

Can weather affect running costs?

Yes. Cold weather can reduce battery efficiency and range by up to 20 percent, meaning slightly higher electricity costs in winter. Preheating your car while plugged in helps mitigate this.

Do electric cars hold their value?

Modern EVs now depreciate at a similar rate to petrol cars, particularly those with longer ranges or strong brand support. Used EVs are increasingly in demand as more drivers make the switch.

Conclusion

Running an electric car in the UK can cost as little as 5p per mile if you charge at home on a cheap tariff. Even on standard rates, most EV owners spend less than half of what petrol drivers pay for fuel. Maintenance, tax, and servicing costs are also lower, and there are additional savings from zero emission zones and fewer moving parts.

While purchase prices and insurance can be higher initially, the day-to-day savings quickly add up. For most UK drivers, switching to electric driving is not just an environmentally sound choice but a financially sensible one. With lower running costs, reduced maintenance, and increasing support for home charging, electric vehicles are becoming one of the most cost-effective ways to travel.