The EV Guide: How much does it cost to run an electric car?

Why are electric cars more expensive?

Electric cars typically come with a higher price tag than their petrol or diesel siblings. Despite often being built with fewer moving parts (no complicated engines here), these parts pack a premium punch in the price department.

The battery is the main culprit for the increased costs - it's essentially the heart, lungs and muscles of your EV all rolled into one high-tech package.

Just look at the Peugeot 2008 compared to the Peugeot E-2008:

• The 2008's OTR price starts at £27,940
• The E-2008 jumps up to an OTR price from £32,855

That's nearly a £5,000 difference! But before your enthusiasm runs out of charge, let's look at the running costs.

How much does it cost to charge an electric car? 

This will vary depending on where and which charger you use.

Charging at home is typically one of the most affordable methods, though it takes a bit longer than rapid charging stations. Think of it like making the perfect latte (with the perfect art) versus grabbing a quick espresso - both get you caffeinated, but at different speeds and prices.

EV Charging Solutions estimates that the average cost of electricity is around 19p/kWh. Let's put that into perspective:

• If your petrol car has a 40-litre tank, and petrol is £1.80 per litre, filling up costs you £72.00
• One of the largest batteries available is in the Tesla Model S 100D – the 100 representing the number of kWh it can hold
• The cost to fully charge this Tesla would be 19p per kWh × 100 = £19.00

You can also charge at off-peak times to make this even cheaper. Apps such as Optiwatt can help with this.

According to Pod Point, your typical EV with a 60kWh battery and 200 miles of WLTP Combined range would cost approximately:

• £13 charging at home
• £26 charging at public locations
• £19 for a 30 minute rapid charge (gaining 90 miles of range)

If you're looking to squeeze every mile out of your money, here are three of the most efficient EVs to charge and run:

• Hyundai IONIQ - £3.75 per 100 miles
• Tesla Model 3 Standard Range Plus - £3.78 per 100 miles
• Tesla Model 3 Long Range Dual Motor - £3.85 per 100 miles

How much does it cost to run an electric car per 100 miles?

Let's break it down mile by mile. 

According to EDF Energy, with the average UK electricity price hovering around 27p per kWh, and assuming your EV covers about 3.5 miles per kWh, a 100-mile journey would set you back roughly £7.70 — that's just 7.7p per mile.

Not too shabby, right?

Now, compare that to a petrol car. 

Using 2019’s average fuel economy of 49.2 miles per gallon and a (somewhat optimistic) petrol price of £1.34 per litre, you’re looking at around £12 for the same 100 miles — or 12p per mile.

That’s nearly 60% more just to go the same distance.

Do electric cars cost less to maintain?

There's no denying that electric cars can save you money when it comes to maintenance.

Pop the bonnet of an EV and you'll find fewer moving parts than in a traditional engine - no oil changes, no timing belts, no exhaust systems to worry about.

It's like comparing a sleek smartphone to an old mechanical watch. Both tell the time, but one has far fewer components that can go wrong.

You'll still need to maintain and monitor your battery's health as you would an engine, as well as general parts like your windscreen wiper blades and tyres.

But overall, your service bills should be lighter on your wallet.

Kia estimates that a typical lithium-ion battery is more than capable of clocking up over 100,000 miles while maintaining a stable driving range.

With most electric car lease deals lasting between 36 or 48 months, it's unlikely you'll reach this milestone during your lease term.

Are electric cars any more expensive to insure?

This ultimately depends on the car you’re trying to insure. Historically, electric cars have been slightly more expensive to insure than petrol or diesel cars.

It has been reported that these increased prices can reflect the cost of work that can be undertaken on the cars, rather than their cost or reliability per se. Parts like batteries can also be more expensive to repair.

However, it is no longer considered to be a hard and fast rule, with some electric cars proving to be cheaper to insure than their combustion engine counterparts.

Insurer LV released data in early 2021 that showed in some cases it’s cheaper to insure an electric model, and in other cases can cost around 10% more.

According to LV, a Renault ZOE was 8% cheaper to insure on average than a Renault Clio (£287 vs £311), whereas a Nissan Leaf was only 8% (or £23) more expensive to cover than a Nissan Micra (£301 vs £278).

Similarly, premiums for a Hyundai Kona (£299 electric vs £283 petrol) and Kia Niro (£307 electric vs £289 petrol) were found to be 6% more than combustion equivalents.

How much does it cost to tax an electric vehicle?

Once upon a time, electric vehicles enjoyed a complete exemption from road tax. However, the government has announced that from April 2025, electric vehicles will have to pay their way too.

And with the expensive car supplement added on for any car worth over £40,000, driving an electric car is getting a bit pricier on the tax front.

Here's the silver lining though: when you lease, these costs are already factored into your monthly payment. No need to worry about digging through your pockets each year to find the money for road tax.

Electric vehicles still enjoy some perks, including:

• Exemption in any Ultra Low Emission Zones
• 100% discount on London's Congestion Charge

Are electric cars really cost-effective?

Many drivers get stuck at the red light of higher list prices for electric cars, but with significantly lower running costs, the overall expense often balances out over time.

An electric car lease is a fantastic way to lower the barrier of EV ownership. At the time of writing, a Peugeot 2008 lease costs £211.81 per month, while a Peugeot E-2008 costs £235.13 per month.

That's just £23 more per month to go electric - about the price of a takeaway for two.

And the running costs over the course of your lease would definitely level the playing field or even tip it in the EV's favour.

Not only do they cost less than a tank of fuel to fully recharge, but they're also cheaper to run per mile.

With the opportunity to both save money every month and drive more economically, an electric car lease should be viewed as a viable and often money-saving alternative for many drivers.

*Prices correct at the time of publication - May 2025