Electric vehicles are nearly £600 cheaper to run than petrol cars
The annual running cost of an electric vehicle is now £579 cheaper on average than a petrol-fuelled car, according to the latest research from comparethemarket.com. This difference in cost has increased from 2021 when EVs were just over £400 cheaper to run.
The research, which analyses the price of insurance, fuel, and road taxes, shows that the average annual cost of running a petrol-fuelled car is now £1,843, whereas an electric vehicle (EV) costs an average of £1,264 to drive for 12 months.
While petrol cars are usually more expensive to run due to the annual road tax exemption for EVs, the cost of driving both types of car has risen year-on-year. For EVs, the cost has increased by £137 year-on-year, primarily due to higher energy costs in recent months. The average annual energy bill for an EV has increased by £167 year-on-year to £519, based on driving 6,700 miles, the UK average. Despite the average EV car insurance premium falling by £29 year-on-year, EVs are still typically more expensive to both buy and insure than similar petrol cars. EV owners also usually choose to install a home charging point which would add an additional cost.
In contrast, the average annual cost of running a petrol-fuelled car has risen by a much steeper £313 year-on-year to £1,843. This sharp rise in running costs has mainly been driven by the increase in the price of petrol and higher car insurance premiums. The average annual fuel cost for a petrol car is now £943 – a £221 increase compared to the previous year. In contrast to EV insurance premiums falling marginally year-on-year, the average car insurance premium for petrol cars has risen by £82 year-on-year due to a rise in the value of second-hand cars and replacement part inflation.
Electric cars continue to grow substantially in popularity, with March data from the Society of Motor Manufacturers and Traders indicating these vehicles now make up around one in three new car sales. The accelerating number of EV car owners could offset some of the increased running costs of their cars by shopping around for a cheaper deal on their insurance. EV drivers could save an average of £101 by switching to the cheapest motor premium available.
Alex Hasty, Director at comparethemarket.com, said: “Despite surging energy bills, motorists who’ve made the switch will be glad to see that electric vehicles cost substantially less to run than a petrol alternative. As well as helping the environment, these drivers benefit from savings in fuel, insurance, and tax. However, there is a significant upfront cost of buying an electric car and installing a home charging point which will prevent many drivers from being able to afford this option.
“Both electric and petrol car owners could help reduce the cost of running their car by switching to a cheaper insurance policy ahead of their renewal. Our research shows that motor insurance prices are £314 cheaper on average by switching 21 days before the end of a policy.”