- The annual running costs of an electric vehicle are £525 a year cheaper on average than petrol.
Driving an electric car could save middle-aged drivers more than £500 a year on average compared to a petrol car – but only if they can charge it at home.
In a report highlighting the gulf that exists in how an electric vehicle operates with and without access to home charging, comparison site Compare the Market looked at costs for typical drivers aged 45 to 54, including insurance, fuel and road tax.
It found the average annual cost of running an electric vehicle for those in this age group was £1,195. In comparison, even a frugal petrol car typically costs £1,720 to run for 12 months.
Middle-aged electric vehicle drivers save an average of £525 a year on running costs compared to petrol drivers of the same age, according to a report.
On average, middle-aged EV drivers, aged 45 to 54, save £525 a year on running costs, compared to equivalent petrol owners driving fuel-efficient cars.
This is a bigger saving than last year, when the gap was found to be £357, thanks to a fall in electricity prices.
These savings were achieved even though electric vehicle insurance premiums were higher than a gasoline vehicle, with it being primarily the economical costs of home charging that make electric cars more affordable to run. .
To calculate annual operating costs, the study calculated annual fuel and charging costs for drivers who travel 6,000 miles a year, using March 2024 prices.
This is based on a petrol cost of £1.47 per litre, with a fuel efficiency of 5.4 liters per 100km. This equates to a car capable of achieving a frugal average of 54 miles per gallon.
The report used electricity prices of 25p/kWh in the same month, with a fuel efficiency of 16.9kWh per 100km.
This is the standard p/kWh time for charging at home, meaning these savings depend on the EV driver not having to rely on public charging.
For those who rely entirely on the use of public chargers, the cost of operating an electric vehicle would be much higher.
According to March EV charging price data, the average cost of using a public “rapid” charger was 60p/kWh, which is almost double the national cost.
Using a ‘Fast’ or ‘Ultra-Fast’ device, which guarantees the shortest charging times, costs an average of 74p and 77p/kWh, according to the recent AA Charging Report.
Electric vs Petrol: Compare market analyzed costs for typical drivers aged 45-54, including insurance, fuel and road tax.
Insurance premiums (for comprehensive coverage) have increased significantly year on year for both electric and gasoline vehicles.
The average premium for a middle-aged person driving an electric vehicle has risen by £139 in the last 12 months, while the average premium for a petrol car has risen by £157.
But overall, an electric vehicle premium is still £195 more a year for a middle-aged driver than a petrol premium would be.
The benefit of cheap energy rates for charging an electric car helps balance out the cost of your EV insurance premium, with charging saving an average of £530 a year compared to filling up with petrol.
Falling energy prices mean it currently costs £400 to charge an electric vehicle, compared to £555 last year in 2023. By contrast, the average cost of filling a petrol car with fuel has fallen by just £15 at £930 a year.
Vehicle excise duty (or car tax), which you don’t have to pay for electric vehicles – although this will change in April 2025 – is another saving from using an electric vehicle.
VED currently costs £190 per year for a petrol car, but is free for electric vehicles.
MOT costs are the same: Compare the Market puts costs at £55 (government price is £54.85) for both electric vehicles and petrol cars, even though electric vehicles do not require a test emissions or noise.
