Is it cheaper to run an electric car?

How much does it cost to charge an electric car?

The cost-saving does depend on the price of energy relative to fuel at the time of charging. The cost of charging an electric car is also influenced by the type of charger you have (if charging at home) or the type of public charging station you use. If you choose to invest in an electric car, it would be wise to assess the different charging options available to you, so you can get the best deal for your lifestyle.

How much does it cost to run an electric car?

Many of us expect electric car insurance to be more expensive than petrol or diesel car insurance. But with the number of electric cars increasing on UK roads, insuring one today is far more affordable than when they first hit the market. In some cases, today’s EV insurance premiums may even be cheaper than their petrol and diesel equivalents1.

That said, cheaper isn’t always better. Before signing the dotted line, take time to make sure your electric car insurance covers everything you need, including:

  • Cable cover – for loss, damage or theft
  • Battery cover

Learn more about the cost of owning an electric vehicle.

Are electric cars cheaper than petrol or diesel?

Brand new electric cars do tend to be more expensive than petrol or diesel cars. However, this is just the initial cost. As mentioned earlier, the running costs for an electric car are generally lower than for a petrol or diesel car, so driving one may save you more money in the long run.

As of 2021, the average cost of an electric or hybrid car is £36,633 while the average cost of a petrol or diesel car is £29,018, according to the Office for National Statistics (ONS)2.

What is the electric car congestion charge?

Electric and hybrid car drivers are currently exempt from both the London Congestion Charge and the Ultra Low Emission Zone (ULEZ) charge.

To qualify for these exemptions, you must register your electric car with Transport for London (TfL). This will cost you £10 and requires yearly renewal.

Want to make the switch and purchase an electric car? An M&S Bank Personal Loan could help you cover the cost.

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Published January 2023

  1. Correct at time of publication, see Auto Express for up-to-date information
  2. Correct at time of publication, see ONS for up-to-date information