New analysis from Examine the Market has taken a deep dive into the price of proudly owning an EV in comparison with a petroleum automotive
The standard annual operating value for an electrical automobile (EV) is £369 lower than a petroleum automotive, in response to new analysis from Examine the Market. The analysis, which analyses the value of insurance coverage, gasoline, street taxes and MOT prices, exhibits that the common annual value of operating an EV in June 2025 was £1,351 in contrast with £1,720 for a petroleum automobile.
Following the introduction of the Authorities’s new Electrical Automobile Grant (ECG) scheme at the start of August, motorists may now save £1,500 on sure new EVs. Insurance coverage premiums for the Citroën ë-C3, ë–C4, ë-C5, and ë-Berlingo – 4 of the fashions included within the scheme – have been £451 on common in June this yr, in response to Examine the Market, probably taking general operating prices all the way down to £1,142 for these fashions.
As of the tip of August, house owners of EVs included in Band 1 of the scheme – which embrace the Ford E-Tourneo Courier and Ford Puma Gen-E – can profit from a good bigger low cost of £3,750. Extra broadly, the common automotive insurance coverage premium for EVs has fallen by £176 year-on-year, lowering to £660 in June 2025 from £836 in the identical month final yr.
The common operating prices for EVs, nonetheless, have risen within the final yr. That is partly as a result of drivers now must pay the identical Car Excise Responsibility (street tax) as drivers of petrol automobiles, growing general operating prices by £195. Increased power prices have additionally made EVs dearer to run year-on-year, with electrical energy to energy an EV for 12 months costing £441 on common in comparison with £400 final yr.
Regardless of this, EVs stay cheaper to run general than petrol automobiles and proceed to develop in reputation, accounting for 26.5% of recent automobiles registered in August 2025, in comparison with 22.6% the identical time final yr, in response to the Society of Motor Producers and Merchants. The decline in EV automotive insurance coverage premiums year-on-year means drivers who store round on-line for automotive insurance coverage when their renewal is due – relatively than mechanically renewing – might discover a whole lot, the researchers mentioned.
Sam Wilson, knowledgeable at Examine the Market, mentioned: “EV drivers shall be happy to know that EVs stay extra reasonably priced to run than petrol automobiles on common. Alongside decrease upfront prices, motorists driving sure EV fashions included within the Authorities’s new ECG scheme might additionally profit from the decrease insurance coverage premiums sometimes related to EVs, additional decreasing annual operating prices. As common insurance coverage premiums fall for EVs extra broadly, evaluating insurance policies on-line forward of renewal may very well be one of many best methods for motorists to make financial savings.”
EV and petrol automotive operating prices for a yr in contrast
AVERAGE ANNUAL COST OF RUNNING AN ELECTRIC VEHICLE
12 months
2024
2025
Insurance coverage
£836
£660
Gas
£400
£441
Est. VED (Highway Tax)
£0
£195
MOT
£55
£55
Whole value per yr
£1,291
£1,351
AVERAGE ANNUAL COST OF RUNNING A PETROL-FUELLED CAR
12 months
2024
2025
Insurance coverage
£816
£625
Gas
£933
£845
Est. VED (Highway Tax)
£190
£195
MOT
£55
£55
Whole value per yr
£1,994
£1,720
In regards to the analysis
Insurance coverage knowledge was sourced from Examine the Market. It mentioned 51% of Examine the Market prospects aged between 45 and 54 have been quoted lower than the costs acknowledged on this launch for his or her automotive insurance coverage for March 2024 and March 2023. These are for petrol and electrical automobile enquiries for complete cowl. Hybrid automobiles are included within the petrol-fuelled insurance coverage figures.
Annual gasoline prices have been based mostly on drivers travelling 6,000 miles per yr (ONS NTS0901 – Petrol automotive mileage: all automobiles 2022). Petrol priced at £1.45 per litre in June 2024 and £1.31 June 2025 (Supply: BEIS Month-to-month: Typical/common annual retail costs of petroleum merchandise and a crude oil worth index (tab 4.1.1 quarterly).
Gas effectivity was 5.40 litres per 100km (Supply: Division for Transport ENV0103). Electrical energy priced at £0.245 per kWh in June 2024 and £0.2703 per kWh in June 2025 (Supply: Power Worth Assure 2024 and Ofgem 2025). Gas effectivity is 16.9 kWh per 100km (Supply: common effectivity for the ten most electrical automobile in style fashions on Examine the Market).
MOT value for a automotive – £54.85 (supply: https://www.gov.uk/getting-an-mot/mot-test-fees). Petrol automotive and EV automobiles registered on or after April 1, 2017. Charges for second tax cost onwards. Single 12-month cost – £195 – supply GOV.uk.
