Paul Holdsworth, Engineer
31 Jan : Updated 17 Apr ● 11 min read
Every year, more and more of us decide to make the switch from a petrol or diesel car to an electric vehicle. If we cast our minds back to 2019, the number of electric and hybrid cars registered in the UK was just over 97,500, a figure which rose to more than 927,000 at the end of 2023.
Don’t worry, we’ve done the maths for you; this is an increase of over 850% in just 4 short years. Pretty incredible, right?
If you’re one of the growing number of drivers considering investing in an electric or hybrid-electric car, you’re likely thinking about the potential cost savings you could make by switching. In this guide, we’ll compare petrol and electric cars against one another using key metrics to help you decide whether going down the EV road is right for you (and your wallet).
Although electricity costs have risen and fallen recently, petrol prices have followed this trend. That's why EV drivers who charge their cars at home can still save considerable money per mile compared to petrol or diesel cars.
According to the RAC Foundation's most recent figures, motorists in 2022 drove an average of 6,600 miles. So, to charge a standard Nissan Leaf with a 40 kWh battery will cost around £453 per year, based on these annual figures and current electricity costs.
This compares to the annual fuel costs for a similar mid-sized hatchback car, the petrol-fueled Volkswagen Golf, which would approximately cost £1,126 per year to run.
It costs £16 to drive a petrol car 100 miles, whilst it only costs £10 to drive an electric car the same distance. Over the course of a year, this means EV drivers could save hundreds, if not thousands, of pounds.
✝ Average fuel and energy prices are correct as of April 2024.
Initially, electric vehicles tend to have a higher upfront cost compared to traditional petrol cars. This higher price is primarily due to the expensive battery technology utilised in EVs, which constitutes a substantial portion of an electric car's manufacturing expense.
In addition to this, the cost of installing a home charging point will increase the overall upfront spend. However, having the convenience of charging at home is a major selling point for many homeowners when investing in an electric car.
Motorists can pick up a second-hand ICEV for anywhere from £500 (give or take); however, depending on the age, condition and mileage, the running costs of a traditional combustion engine can vary massively.
The two different ways of charging an electric car are by using a home EV charger or a public charging point, which you can find in places such as motorway service stations. The most convenient way to charge your vehicle is to have a charging point installed in your home.
Although there are some free charging points in the UK, most public charging points will cost more to use than a home charger. With the convenience of a home charging point, you reduce the risk of running out of battery when you're not close to a public EV charging station.
As a last resort, it is possible to charge an electric vehicle using a three-point plug and socket. However, this is less cost-efficient and means that a full charge could take up to 30 hours, depending on the model of electric car you have, so it isn’t encouraged and should only be used in an absolute emergency. Electric car owners with rapid chargers installed at home can fully charge their vehicles in around 10 hours.
Of course, depending on the make, model and specifications, the cost to charge an electric car can vary.
If you want to install an electric charging point at home, there are a few essentials:
Read our guide on EV charger requirements to find out what is necessary when installing a charging point at home.
It is important to remember that installing a home EV charger will end up saving you money in the long run, as domestic charging rates are far lower than those at public charging stations. (And, of course, the price of petrol).
Electric cars typically have a lower cost per mile in terms of energy expenses compared to petrol cars. The cost of electricity to charge an electric car is generally lower than the cost of petrol needed to fuel a traditional combustion engine vehicle.
The exact cost per mile for an electric vehicle depends on several factors, though, including:
By comparison, the cost per mile for petrol cars depends on the ever-fluctuating prices of fuel, the car's efficiency (its miles per gallon or MPG) and your driving habits.
Just like how it’s essential to get your boiler and air conditioning units serviced annually, cars need servicing, too. This goes for both petrol and electric cars, with the only differences being the parts a mechanic will check and the equipment they’ll use during a routine service.
When it comes to the cost of car services, the price you’ll pay will depend on several factors beyond fuel type. These include:
But, if we’re comparing the average charge for a full service between petrol and electric cars, it’s clear that electric vehicles cost considerably less. Steven Wright, a car repairs expert from WhoCanFixMyCar, explains how the average price for EV servicing is £143.75 across all models, while the average price for petrol models is £175.23.
This is due to a number of things, not least the fact that EVs have simpler drivetrains with far fewer moving parts to inspect during a service. Unlike petrol cars, electric vehicles don’t need oil changes, new spark plugs, or transmission repairs, and mechanics can identify any issues quickly by plugging them into a diagnostics machine.
While vehicle services might seem like a bit of an unnecessary expense, it’s actually something that can end up saving you money in the long run. Regardless of whether you have a petrol, diesel, hybrid or all-electric car, keeping it fighting fit by taking it for its annual service can help you avoid larger repair bills further down the line.
At present, petrol cars are subject to Vehicle Excise Duty (VED) or road tax, which is calculated using their greenhouse gas emissions. Petrol and diesel vehicles have higher CO2 emissions and typically face higher road tax rates to incentivise drivers to choose low-carbon vehicles.
Currently, low and zero-emissions vehicles pay significantly lower road tax rates, but this is set to change at the beginning of the 2025 tax year. When this comes into effect, car tax bands will be the same for all vehicles, regardless of fuel type and emissions.
For people living in or driving into central London, you’ll also need to consider congestion charges. The standard congestion charge now applies to all vehicles, regardless of fuel type and emissions, so it doesn’t really come into play when we’re comparing the running costs of electric and petrol cars.
More recently, the Ultra-Low Emission Zone (ULEZ) scheme came into effect across the whole of Greater London, requiring drivers of higher-emission vehicles to pay charges when driving in and around London.
If your petrol car doesn’t meet the ULEZ emissions standard, you’ll need to pay a daily fee of £12.50. If you drive a hybrid-electric or all-electric car, you’re exempt from the charges.
You can find out more about vehicle tax and ULEZ on the dedicated GOV.UK websites.
It doesn’t matter what type of car you drive; if you’re using one on the roads, then you need to make sure it’s insured. The price of your insurance premium will likely vary significantly depending on a whole range of factors, including:
You can learn more about the different factors that influence car insurance premiums on the AA website.
Wondering why the fuel type plays a part in determining how much you’ll pay for insurance? Don’t worry; you’re not on your own!
Fuel type has more of an indirect impact on insurance premiums. The finance gurus from MoneyExpert attribute this to the fact that things like repair costs and market value are typically higher for electric cars than they are for petrol or diesel models, meaning they’re more expensive to repair should anything go wrong.
Insurance premiums fluctuate constantly, though, so it’s always best to check on comparison sites to get the most up-to-date information and estimates.
Vehicle make and model | Cost to insure per year |
Nissan Leaf | £406 |
Renault Zoe | £424 |
BMW i3 | £636 |
Jaguar I-Pace | £899 |
Tesla Model S | £1,628 |
Unfortunately, due to their polluting nature, petrol cars do not typically receive direct government grants or incentives. For electric vehicle owners, however, there are a number of government grants available to apply for.
If you're purchasing a brand new electric car, government grants and incentives are available to help towards the cost. You do not apply for the grant directly. The seller includes it as a discount in the purchase price. This scheme is operated by the Office for Zero Emission Vehicles (OZEV) and is called the Plug-In Car Grant.
The vehicles eligible for the grant include:
Vehicles eligible | Grant availability |
Wheelchair accessible vehicles | 35% of the price, up to £2,500 |
Motorcycles | 35% of the price, up to £500 |
Mopeds | 35% of the price, up to £150 |
Small vans | 35% of the price, up to £2,500 |
Large vans | 35% of the price, up to £5,000 |
Taxis | 20% of the price, up to £7,500 |
Small trucks | 20% of the price, up to £16,000 |
Large trucks | 20% of the price, up to £25,000 |
Other schemes include:
Electrical vehicle owners are also eligible to apply for the government’s EV Chargepoint Grant, which is available to those who live in a flat or rent a property. Those eligible will receive a 75% contribution to the cost of one charge point and its installation, up to the price of £350.
Business owners can also apply for government grants as part of the Workplace Charging Scheme. This is also capped at £350 for each charging point and will cover 75% of the purchase and installation costs. Eligible businesses can apply for funding for up to 40 charging points.
You'll always be ready to go with a fast car charger installed at your home.
Get your fixed price nowCharging an electric vehicle at home is considerably cheaper than at a public charging point. For a full charge of 250 miles at home, expect to pay around £15. This compares to approximately £11 for a 30-minute rapid charge, which will top your vehicle up by around 90 miles.
Ready to make the switch and enjoy stress-free EV charging? Visit our EV Chargers page today to explore how a home EV charger can make getting from A to B as easy as 1, 2, 3.