Key takeaway: An electric car costs 5p to 8p per mile to run on home charging, compared to 14p to 18p per mile for petrol. But higher insurance premiums, new road tax charges (from April 2025), and faster depreciation mean the total cost picture is more nuanced than "electric is always cheaper." The break-even point depends heavily on your mileage, charging access, and which specific cars you compare.
The electric vs petrol debate has changed significantly in 2026. Electric vehicles now pay road tax (£190/year), insurance premiums for EVs remain 30% to 50% higher than equivalent petrol cars, and public charging costs have risen sharply. At the same time, home electricity prices have stabilised, and the used EV market is maturing with more affordable options.
In this guide, we compare like-for-like electric and petrol cars across every cost category, using real UK data. No manufacturer claims, no cherry-picked scenarios. If you want to check the running costs for any specific vehicle, enter the registration number in our free tool for a personalised breakdown.
The Cars We Are Comparing
To make this fair, we compare cars that compete directly in the same segments:
| Segment | Electric | Petrol |
|---|---|---|
| Small car | Vauxhall Corsa-e (136PS, 50kWh) | Vauxhall Corsa 1.2 Turbo (100PS) |
| Family hatch | MG4 Standard Range (170PS, 51kWh) | Volkswagen Golf 1.5 TSI (150PS) |
| SUV | Hyundai Kona Electric (217PS, 65kWh) | Hyundai Kona 1.6 T-GDi (198PS) |
| Premium | Tesla Model 3 Standard Range (275PS) | BMW 320i (184PS) |
Cost Category 1: Fuel / Energy
This is where EVs shine brightest. The cost per mile depends on how and where you charge:
Electricity Costs
| Charging Method | Cost per kWh | Cost per Mile (avg EV) |
|---|---|---|
| Home (standard tariff) | 24p-28p | 6p-8p |
| Home (overnight/EV tariff) | 7p-12p | 2p-4p |
| Workplace (free) | 0p | 0p |
| Public slow (7-22kW) | 35p-55p | 10p-16p |
| Public rapid (50kW+) | 65p-85p | 18p-24p |
Petrol Costs
| Car | Real-World MPG | Cost per Mile |
|---|---|---|
| Vauxhall Corsa 1.2T | 46-52 | 12p-14p |
| VW Golf 1.5 TSI | 42-48 | 13p-15p |
| Hyundai Kona 1.6T | 38-44 | 14p-17p |
| BMW 320i | 38-42 | 15p-17p |
Annual Fuel/Energy Cost (8,000 miles)
| Comparison | Electric (Home Charging) | Petrol | Annual Saving (EV) |
|---|---|---|---|
| Corsa-e vs Corsa 1.2T | £480-£640 | £960-£1,120 | £400-£560 |
| MG4 vs Golf 1.5 TSI | £500-£660 | £1,040-£1,200 | £460-£620 |
| Kona Electric vs Kona 1.6T | £520-£680 | £1,120-£1,360 | £520-£760 |
| Model 3 vs 320i | £440-£580 | £1,200-£1,360 | £680-£840 |
On home charging, EVs save £400 to £840 per year in fuel costs. However, if you rely entirely on public rapid chargers, the saving shrinks to £0 to £200 per year, and in some cases the EV actually costs more per mile.
Cost Category 2: Insurance
Insurance is where EVs consistently lose ground:
| Comparison | EV Insurance Group | Petrol Insurance Group | Annual Premium Difference |
|---|---|---|---|
| Corsa-e vs Corsa 1.2T | 21-28 | 6-10 | £300-£500 more for EV |
| MG4 vs Golf 1.5 TSI | 22-26 | 14-18 | £200-£350 more for EV |
| Kona Electric vs Kona 1.6T | 24-30 | 16-20 | £250-£400 more for EV |
| Model 3 vs 320i | 30-38 | 24-28 | £300-£500 more for EV |
Higher insurance for EVs is driven by expensive battery repairs, limited specialist repair facilities, and higher new car values. For a driver in their 30s with 5 years NCB, the difference is typically £200 to £400 per year. For a younger driver, it can be £500+.
Cost Category 3: Road Tax (VED)
Since April 2025, EVs pay the standard VED rate of £190/year (previously £0). For detailed rates, see our car tax changes guide.
| Comparison | EV Road Tax | Petrol Road Tax |
|---|---|---|
| Standard models (post-2017) | £190/year | £190/year |
| Models over £40,000 list price | £600/year (5 years) | £600/year (5 years) |
Road tax is now identical. The Tesla Model 3 Long Range, BMW i4, and most premium EVs attract the £410 expensive car supplement, adding £600/year total for the first five years.
Cost Category 4: Maintenance and Servicing
EVs have fewer moving parts and generally cost less to service:
| Service Item | Electric | Petrol |
|---|---|---|
| Annual service | £100-£200 | £180-£350 |
| Brake pads (per axle) | Last 80,000-100,000 miles (regen braking) | Last 25,000-40,000 miles |
| Oil changes | None required | £80-£150 per change |
| Timing belt | None | £300-£600 (every 60-100k miles) |
| Exhaust system | None | £150-£600 (catalytic converter, DPF) |
| Coolant system | Simpler (battery cooling) | More complex (engine + radiator) |
Over a typical 3-year ownership period, servicing and maintenance costs for an EV are roughly £500 to £1,000 less than a comparable petrol car. However, if the EV battery needs replacement outside warranty (unlikely but possible), costs range from £5,000 to £15,000 depending on the car.
Cost Category 5: MOT
EVs still require an annual MOT from the age of 3 years. The test fee is the same (£54.85 maximum). EVs typically have higher pass rates because they have no exhaust emissions to test and fewer suspension-stressing components. Early data suggests EV MOT pass rates are 5% to 10% higher than equivalent petrol cars.
Cost Category 6: Depreciation
Depreciation is the largest single cost of car ownership, and the picture is mixed for EVs:
| Comparison | EV Value Retained (3 years) | Petrol Value Retained (3 years) |
|---|---|---|
| Corsa-e vs Corsa 1.2T | 40-45% | 48-53% |
| MG4 vs Golf 1.5 TSI | 38-43% | 50-55% |
| Kona Electric vs Kona 1.6T | 42-47% | 48-53% |
| Tesla Model 3 vs BMW 320i | 55-60% | 48-52% |
Most EVs depreciate faster than equivalent petrol cars because battery technology evolves rapidly (making older EVs less desirable) and new EV prices keep falling as manufacturers compete for market share. Tesla is the notable exception: strong brand demand and OTA software updates help Teslas hold their value better than most.
Total Cost of Ownership: 3-Year Comparison
| Cost (3 years, 8,000 miles/yr) | Corsa-e | Corsa 1.2T | Model 3 | BMW 320i |
|---|---|---|---|---|
| Purchase price | £30,000 | £22,000 | £42,000 | £38,000 |
| Depreciation (3yr) | £16,500 | £10,340 | £17,640 | £19,000 |
| Fuel/energy | £1,680 | £3,120 | £1,530 | £3,840 |
| Insurance | £2,400 | £1,350 | £3,600 | £2,400 |
| Road tax | £570 | £570 | £1,800 | £1,800 |
| Servicing + MOT | £600 | £1,200 | £750 | £1,500 |
| Total 3-year cost | £21,750 | £16,580 | £25,320 | £28,540 |
Key findings:
- Corsa-e vs Corsa 1.2T: The petrol Corsa is £5,170 cheaper over 3 years, mainly because of the £8,000 purchase price difference and faster EV depreciation. The fuel savings (£1,440) and maintenance savings (£600) are not enough to close the gap.
- Tesla Model 3 vs BMW 320i: The Tesla is £3,220 cheaper over 3 years. Despite costing £4,000 more to buy, the Tesla's slower depreciation, much lower fuel costs, and cheaper servicing swing the numbers in its favour. This is one of the few EV comparisons where the electric option genuinely saves money.
When Does an EV Make Financial Sense?
An EV is likely to save you money if:
- You can charge at home, ideally on an overnight tariff (7p to 12p/kWh)
- You drive 12,000+ miles per year (higher mileage = more fuel savings)
- You plan to keep the car for 4+ years (amortises the purchase premium)
- You are comparing against a premium petrol car (BMW, Mercedes, Audi) where the EV alternative depreciates more slowly
- You can get a company car (BIK rate for EVs is just 2%, saving thousands per year in tax)
An EV is unlikely to save you money if:
- You rely on public rapid chargers for most of your charging
- You drive fewer than 6,000 miles per year
- You are comparing against a very efficient petrol hybrid (Toyota Yaris Hybrid, Honda Jazz)
- You change cars every 1 to 2 years
- You are buying in the small car segment where the purchase price gap is proportionally largest
Check Any Car's Costs
Whether you are leaning towards electric or petrol, the specific car matters more than the fuel type. A well-chosen petrol car can be cheaper than a poorly-chosen EV, and vice versa. Our free car check tool works for all fuel types. Enter any registration number to see insurance group, road tax, fuel costs, MOT history, and predicted annual running costs. It gives you the real numbers for your exact car, not generic estimates.