Are EVs More Affordable Than Petrol Cars?

Sat 23rd Apr 2022

While the price of petrol and diesel continues to soar, many motorists will be asking themselves would it be cheaper to run an electric car, but what are the real costs of owning an EV?

Many potential EV owners might be put off by the significantly bigger up-front cost of purchasing an electric car, but now a study by motor insurance provider LV has revealed the total cost of ownership and compared it to an internal combustion alternative.

The Electric Car Cost Index analyses factors such as purchase price, tax, insurance, fuel and maintenance across a wide range of the most popular EV models, comparing the costs against the petrol and diesel equivalent from that car brand.

The study found that for the 13 cars in the study, the EV was the cheaper in every case, when compared over an average seven years of ownership. EV owners would save an average of £3,862 for going green.

The key factor for saving money was the lower average running costs of an EV, with petrol and diesel adding a significant financial burden on ICE engines. On average an EV will be £1,054 cheaper a year based on fuel. However, that upfront cost will still be a concern for many potential buyers, with the study finding that the average cost of an EV is almost £7,000 more than the petrol or diesel equivalent.

“Despite the upfront sticker price of an electric car being higher than the equivalent petrol or diesel car, it pays to look at all the costs involved,” said Gill Nowell, head of EV at LV= General Insurance. “Even with escalating fuel and energy costs, if people can afford to make the switch to an electric car, either new or second-hand, then charging up with energy at home rather than filling up at a petrol station is far cheaper – and better for the environment and our local air quality.”