Electric cars vs. petrol: How much could you save?

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).

The costs compared to petrol or diesel cars

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.

Electric cars vs. petrol cars: purchase price

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. 

Electric car vs. petrol cars: cost to charge/refuel

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. 

What is the cost of installing a home EV charger?

If you want to install an electric charging point at home, there are a few essentials: 

• You'll need to have a garage, a driveway or off-road parking so that the engineer who installs your charger can access the mains electricity
• There'll also need to be enough room to run the charging lead from the unit to your vehicle

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 car vs. petrol car: cost per mile

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:

• The electricity rates in your area and the tariff you’re on
• The efficiency of the electric vehicle
• The capacity of its battery

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. 

Electric car vs. petrol car: cost to service

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:

• The size of the vehicle (small, medium or large)
• The location of the garage you take it to (prices in London are typically higher than elsewhere in the country)
• The time of year you get the service done (garages tend to be busier during winter, so may increase prices)
• Whether you’re getting a major or interim service

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.

Electric car vs. petrol car: tax rates and additional charges

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.

Electric vs. petrol car: cost to insure

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:

• The make and model of your car
• Where you live and where you park the car overnight
• Your age and driving history
• Whether you intend to use the car for business purposes
• Predicted repair costs (based on the cost and availability of parts and access to qualified engineers)
• Your expected annual mileage
• Safety features

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.

Below are the average insurance costs for some of the best-selling EVs in the UK

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

Government grants available for electric motors

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:

• Zero road tax (VED): Electric cars are exempt from Vehicle Excise Duty (road tax) in the UK, resulting in additional savings for EV owners. However, this is changing in 2025.
• Congestion charge discounts: Some cities in England, like London, offer congestion charge exemptions or discounts for electric vehicle owners to encourage cleaner transportation in urban areas.
• Local authority grants: Various local authorities in England may provide additional grants or incentives to promote the adoption of electric cars. These can include discounts on charging infrastructure installations or reduced parking fees - check your local council website for more details.

Grants for installing home charging points

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. 

Grants for businesses

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.

Get an EV charger at home with BOXT

Charging 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.