EV costs are cheaper, due to insurance

THE typical annual running cost for an electric vehicle (EV) is £369 less than a petrol car, according to new research from Compare the Market.

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The research, which analyses the price of insurance, fuel, road taxes and MOT costs, shows that the average annual cost of running an EV in June 2025 was £1,351 compared with £1,720 for a petrol vehicle.

Following the introduction of the Government's new Electric Car Grant (ECG) scheme at the beginning of August, motorists can also now save £1,500 on certain new EVs. Insurance premiums for the Citroen e-C3, e-C4, e-C5, and e-Berlingo - four of the models included in the scheme - were £451 on average in June this year, according to Compare the Market, potentially taking overall running costs down to £1,142 for these models.