Key takeaway: Electric cars are significantly cheaper to fuel than petrol or diesel cars (roughly 4p to 7p per mile vs 14p to 18p per mile for petrol), but higher insurance premiums, faster depreciation on some models, and the upfront purchase price mean the total cost of ownership picture is more nuanced than the headlines suggest. For high-mileage drivers (12,000+ miles per year) who can charge at home, an EV is almost certainly cheaper overall. For low-mileage drivers relying on public chargers, the savings narrow considerably.
Electric car sales in the UK have grown rapidly. As of early 2026, pure battery electric vehicles (BEVs) account for roughly 20% of new car sales and the used EV market is expanding fast as leased vehicles return. But the running cost question remains the most common concern for potential buyers.
This guide breaks down every running cost category with real 2026 UK figures, so you can make an informed decision. You can check the running costs of any specific car (electric, petrol, or diesel) using our free car check tool.
Charging Costs: Home vs Public
Charging is the EV equivalent of filling up with petrol. The cost depends entirely on where you charge:
Home Charging (7kW Wall Box)
Home charging is the cheapest way to run an EV. The average UK electricity rate in 2026 is approximately 24p per kWh on a standard tariff. Many EV owners use off-peak tariffs (like Octopus Go or similar) that drop to 7p to 12p per kWh overnight.
| Scenario | Cost per kWh | Cost per Mile | Cost per 10,000 Miles |
|---|---|---|---|
| Standard tariff (24p/kWh) | 24p | 6-8p | £600-£800 |
| Off-peak tariff (9p/kWh) | 9p | 2.5-3.5p | £250-£350 |
| Economy 7 (12p/kWh) | 12p | 3.5-4.5p | £350-£450 |
A typical EV consumes 3 to 4 miles per kWh (or 25 to 35 kWh per 100 miles). Smaller, more efficient cars like the MG4 and Tesla Model 3 are closer to 3.5 to 4 miles per kWh. Larger SUVs like the Tesla Model X or BMW iX are closer to 2.5 to 3 miles per kWh.
Public Charging
Public charging is more expensive and varies widely by network:
| Charger Type | Typical Cost per kWh | Cost per Mile | Cost per 10,000 Miles |
|---|---|---|---|
| Slow (7kW, destination) | 30-45p | 8-12p | £800-£1,200 |
| Fast (50kW, most common) | 50-65p | 13-18p | £1,300-£1,800 |
| Ultra-rapid (150kW+) | 65-85p | 17-24p | £1,700-£2,400 |
At ultra-rapid charger prices, an EV costs roughly the same per mile as a petrol car. The financial case for an EV relies heavily on home or workplace charging. If you cannot charge at home or work, the savings are much smaller.
Insurance Costs: The EV Premium
Electric cars are consistently more expensive to insure than equivalent petrol cars. The reasons are straightforward: battery replacement costs are extreme (£5,000 to £20,000+), specialist repair facilities are still limited, and repair times are longer because fewer mechanics are trained on EV systems.
| Car | Insurance Group | Typical Premium (30yr, 5yr NCB) |
|---|---|---|
| MG4 Standard Range | 18-22 | £550-£800 |
| Tesla Model 3 | 48-50 | £900-£1,400 |
| Nissan Leaf (40kWh) | 16-21 | £480-£700 |
| BMW i4 | 41-49 | £800-£1,300 |
| VW ID.3 | 22-28 | £550-£850 |
For comparison, a Ford Fiesta 1.0 EcoBoost sits in insurance groups 7 to 14 (typical premium £350 to £550 for the same driver). A Tesla Model 3 at group 48 to 50 costs roughly double to insure. This is a significant ongoing cost that narrows the fuel savings.
Check the insurance group of any car using our free car check tool or browse our insurance groups guide.
Road Tax (VED): Free Until 2025, Then...
Electric cars registered before 1 April 2025 pay £0 in road tax. From April 2025 onwards, new EVs pay the standard rate of £190 per year (rising with inflation). EVs with a list price above £40,000 also pay the "expensive car supplement" of £410 per year for years 2 to 6, bringing the total to £600 per year.
This is a significant change. If you are buying a used EV registered before April 2025, you still benefit from £0 road tax. If buying new or registered after that date, factor in £190 to £600 per year.
Servicing and Maintenance
EVs have fewer moving parts than combustion engines: no oil changes, no spark plugs, no exhaust system, no clutch (in most cases), and no timing belt or chain. This translates to lower servicing costs:
| Item | EV Cost | Petrol Car Cost |
|---|---|---|
| Annual service | £80-£150 | £150-£300 |
| Brake pads (lifetime) | 100,000+ miles (regen braking) | 25,000-40,000 miles |
| Tyres | £100-£200 each (heavier cars = faster wear) | £60-£150 each |
| Coolant system | Battery cooling check at service | Flush every 3-5 years (£80-£120) |
| 12V battery | Replacement every 4-6 years (£80-£150) | Same |
EVs save roughly £200 to £400 per year on servicing and maintenance compared to petrol equivalents. However, tyre wear is faster on EVs due to their heavier weight and instant torque, which partially offsets the savings.
Total Cost of Ownership: EV vs Petrol (10,000 Miles/Year)
Here is a realistic annual running cost comparison for a typical mid-range car, assuming home charging for the EV:
| Cost Category | EV (e.g. MG4) | Petrol (e.g. Ford Focus 1.0) |
|---|---|---|
| Fuel / Charging | £350 (off-peak) | £1,400 |
| Insurance | £650 | £450 |
| Road Tax | £0 (pre-2025) / £190 | £180 |
| Servicing | £120 | £250 |
| Tyres | £200 | £150 |
| Total | £1,320-£1,510 | £2,430 |
On these numbers, the EV saves approximately £900 to £1,100 per year in running costs. Over 5 years, that is £4,500 to £5,500. Whether this offsets the higher purchase price depends on the specific cars being compared and how depreciation plays out.
Depreciation: The Hidden Variable
Depreciation is the largest single cost of car ownership, and it is where EVs have historically struggled. Battery technology evolves rapidly, and a 3-year-old EV with 200 miles of range looks less attractive when new models offer 300+ miles. However, the used EV market is maturing and depreciation curves are stabilising.
Tesla Model 3s hold their value better than most EVs (roughly 55% to 60% after 3 years). Budget EVs like the MG4 and BYD Atto 3 depreciate faster (roughly 45% to 50% after 3 years) because new prices keep falling. Premium EVs (BMW i4, Mercedes EQC) depreciate aggressively (40% to 45% after 3 years) because the technology ages quickly relative to new models.
Should You Buy an EV in 2026?
An EV makes financial sense if:
- You can charge at home or work (ideally on a cheap overnight tariff)
- You drive 10,000+ miles per year (more miles = more fuel savings)
- You plan to keep the car for 3+ years (to offset the purchase premium)
- You do not need to make regular long journeys without reliable charging stops
An EV may NOT save you money if:
- You rely entirely on public rapid chargers
- You drive fewer than 6,000 miles per year (fuel savings are too small to offset higher insurance)
- You change cars every 1 to 2 years (depreciation may work against you)
- You are comparing against a very efficient petrol hybrid (e.g. Toyota Yaris Hybrid)
Check Any Car's Running Costs
Whether you are considering electric, petrol, diesel, or hybrid, our free car check tool calculates personalised running costs for any registered UK vehicle. Enter the registration number to see insurance group, tax band, fuel costs, MOT history, and predicted annual running costs. It works for EVs, hybrids, and combustion cars, giving you a direct comparison in seconds.