How Much Does It Cost To Run An Electric Car?

Will an electric car actually save me money?

Electric cars are often described as cheaper to run than petrol and diesel vehicles. In many cases, they are. But the real answer depends on how you use your car, where you charge and the costs beyond simply buying the vehicle. Let's look at the true cost of EV ownership.

Think of it this way

Running a petrol car is like visiting a fuel station whenever your tank is empty. An EV is more like charging your phone overnight while you sleep. The energy often costs less and the process is more convenient, but the total cost depends on how and where you charge.

The biggest difference: fuel versus electricity

EVs use electricity instead of petrol or diesel. Charging at home is usually the cheapest option, while public rapid chargers can cost significantly more per mile.

• ✓Energy source — electricity vs petrol/diesel
• ✓Cheapest option — home charging vs competitive fuel stations
• ✓Convenience — charge while parked vs stopping to refuel
• ✓Cost variation — depends on your tariff vs pump prices on the day

How much does it cost to charge an EV at home?

A typical EV achieves around 3–4 miles per kWh. A kilowatt-hour (kWh) is simply the unit used to measure electricity, in the same way petrol is measured in litres. Example: • Annual mileage: 10,000 miles • Efficiency: 3.5 miles per kWh • Electricity required: about 2,850 kWh per year What you actually pay depends on your electricity tariff, your charging habits and how efficient your car is.

• ✓Standard flat tariff — around 25–30p per kWh
• ✓EV-specific overnight tariff — often 7–10p per kWh
• ✓Public rapid charging — typically 65–85p per kWh
• ✓Vehicle efficiency varies with speed, weather and driving style

Want to know your own EV running costs?

A full comparison uses four numbers you already know: your annual mileage, your current fuel economy, today's petrol or diesel price, and the electricity tariff you'd charge on. Plug those in and you get your current annual fuel cost, your estimated EV charging cost, and the potential annual difference. A dedicated Carautonomy calculator is coming — for now, use the example figures above as a rough guide.

What does the new EV mileage tax mean?

The UK government is introducing a mileage-based charge for electric vehicles from 2028. Historically, EV drivers did not contribute through fuel duty because they do not buy petrol or diesel. As more drivers move to electric, the government is introducing a new way for EV drivers to contribute.

• ✓5,000 miles a year at 3p per mile = £150 per year
• ✓10,000 miles a year at 3p per mile = £300 per year
• ✓15,000 miles a year at 3p per mile = £450 per year
• ✓Rates are indicative and may change before the scheme launches

Think of it this way — road use

Fuel duty works like paying for road use every time you fill your tank. A mileage-based charge works more like a subscription based on how much you use the roads.

Are EVs cheaper to service?

EVs generally have fewer moving parts. They don't have engine oil, spark plugs, exhaust systems or traditional gearboxes. But they still need regular care.

• ✓Tyres — often wear faster due to instant torque and weight
• ✓Brakes — usually last longer thanks to regenerative braking
• ✓Suspension — still needs routine checks
• ✓Air conditioning and cabin heating servicing
• ✓Software updates and safety checks

Think of it this way — servicing

A petrol car has many mechanical components working together. An EV is simpler mechanically, but it still needs regular care — just like a modern laptop still needs updates and maintenance.

What about insurance?

Insurance is not automatically cheaper on an EV. Premiums depend on several factors, and pricing may change as EV adoption increases and the repair network matures.

• ✓Vehicle value — newer EVs often cost more to replace
• ✓Battery repair costs can be high if damaged
• ✓Repair availability — fewer specialist workshops in some areas
• ✓Driver profile, postcode and mileage still matter as with any car

The biggest cost people forget: depreciation

For most drivers, depreciation is the single biggest ownership cost — bigger than fuel, tax and servicing combined. EV resale values have been volatile as the market matures.

• ✓Battery condition and remaining warranty
• ✓Manufacturer reputation and software support
• ✓Used EV demand in your region
• ✓Pace of technology change — newer models with better range affect older values

Five-year ownership comparison

A rough side-by-side of where the money goes over five years.

• ✓Energy — EVs often lower with home charging; petrol/diesel usually higher
• ✓Servicing — EVs often lower; petrol/diesel often higher
• ✓Tax — EV rules are changing; petrol/diesel is well established
• ✓Insurance — vehicle-dependent for both
• ✓Depreciation — model-dependent for both, and the biggest single cost

Did you know?

The cheapest way to run an EV is usually charging at home overnight on a suitable electricity tariff. The most expensive option is often relying heavily on rapid public chargers.

Carautonomy tip

Don't compare EVs and petrol cars only on purchase price. The better question is: what will this car cost me over the next five years? Include purchase price, finance costs, energy, tax, insurance, servicing and depreciation — then compare like for like.