Julie Daniels, Motor Insurance Expert, Compare the Market

May 09, 2024

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Julie Daniels, Motor Insurance Expert, Compare the Market

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Julie Daniels, Motor Insurance Expert at Compare the Market, comments on the cost of running electric vehicles compared to petrol cars.

The typical annual running cost for an electric vehicle is now £525 cheaper than a petrol car on average, according to new research from Compare the Market. The research looks at middle-aged drivers aged between 45 and 54 years old as an example to showcase the difference in Electric Vehicle premiums compared to petrol fuelled cars.

The research, which analyses the price of insurance, fuel, and road taxes, shows that the average annual cost of running an electric vehicle is £1,195. In comparison, a petrol car typically costs £1720 to run for 12 months. The difference in running costs between the different types of vehicles has increased since 2023, when an electric vehicle was £357 cheaper to run on average.

The cost of car insurance has significantly increased year-on-year for both electric and petrol vehicles. The average premium for a middle-aged person driving an electric vehicle has risen by £139 in the past 12 months, while the average premium for a petrol car has jumped by £157. However, the average premium for an electric vehicle is still £195 more than for petrol vehicle if the driver is aged between 45 and 54 years old.

Julie Daniels, Motor Insurance Expert at Compare the Market, said:

Motorists who’ve switched to an electric vehicle will be glad to see they can be substantially cheaper to run than petrol cars. As well as helping the environment, electric vehicle owners currently benefit from fuel and tax savings. However, the significant upfront cost of buying an electric car and installing a home charging point will prevent many drivers from being able to afford this option. The rising cost of car insurance for electric vehicles and higher road taxes from 2025 may also make switching less attractive to some motorists. One of the best ways to try and save money on your car insurance is by comparing prices ahead of renewal.