Electric vehicles, as the name suggests, run on electricity rather than fossil fuels like petrol or diesel, which means zero tailpipe emissions. Car emissions contribute significantly to climate change, so driving electric can have a hugely positive benefit on the environment.  

Plus, EV energy sources are greener. Unlike petrol and diesel cars, EVs can be powered by renewable energy sources that don’t harm the environment, like wind and solar, or from the country’s increasingly decarbonised energy grid. And because they're more efficient (as we’ll come onto), an electric car using electricity generated by burning fossil fuels is still better for the planet than an equivalent petrol or diesel car. 

Granted, the manufacturing process still creates some emissions, but even after accounting for this, EVs are still better for the environment. And with demand increasing, economies of scale and mass production will work to reduce the carbon intensity of the manufacturing of EVs. 

Additionally, many car brands including BMW, Tesla and Volkswagen are taking great strides towards cutting and off-setting emissions from manufacturing.  

Harmful air pollutants are a combination of gases (like NOx and CO) and particulates, found in soot from (particularly diesel) combustion, but also tyre, road, brake and engine wear. Electric cars still release particulates from tyre, road and brake wear, but brake wear is much reduced because of regenerative braking. If air pollution remains at high levels after all vehicles are zero emission (a big if, because a lot of progress will be made), the tyre and road surface industries will be targets for improvements. 

When an engine is running, a not-insignificant portion of the energy used to power it gets wasted, mainly by heat as the parts move or through friction as the parts interact. But an electric motor has significantly fewer moving parts than an internal combustion engine, which means more energy goes to powering the vehicle and less gets wasted, resulting in higher efficiency. 

This also means less energy is needed to propel the car. Less energy used means less produced, which in turn means less CO2 emissions produced by non-renewable energy sources and the wider energy supply chain as a whole. All possible because EVs are more energy efficient than internal combustion engine cars.

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Tesla model X lifestyle image

Petrol and diesel cars emit harmful exhaust gases and soot, which are known to be linked to numerous health problems. This is particularly important in densely populated areas like large cities where pollution, including CO2, from vehicle exhausts is high. 

But EVs can also combat noise pollution as they’re much quieter than equivalent internal combustion engine cars, with noise pollution linked to many issues ranging from hearing loss to depression and even insomnia. 

EVs are fundamentally superior to combustion vehicles in terms of power, torque, and acceleration, which in turn makes them great fun to drive. On the whole they handle better too due to their low centre of gravity, with their heavy batteries mounted in the chassis. 

Combustion engine cars do still beat EVs for long distances for the time being, as their hugely energy-dense fuel gives them better ranges. But electric car ranges continue to impress and improve, whilst improvements in battery energy densities and better public charging options will mean it’s only a matter of time until the EV becomes the king of long journeys. 

Despite the currently high energy prices, electric cars can still be cheaper to run than petrol/diesel equivalents. Whilst this does depend on your home’s energy tariff and how efficient your particular EV is (likely very high!), there are plenty of other cost benefits that make EVs cheaper to run. For example, electric car maintenance costs tend to be lower as their drivetrains contain far fewer moving parts, so there are fewer things that may need fixing or replacing. Plus, the lack of a clutch system means there’s less metal-on-metal wear. Prices in general for EVs are also gradually coming down, thanks in part to falling battery costs at ~20% per year, and also simply due to the huge demand for mass-market and affordable electric cars from drivers looking to make the switch. This means we’ll soon reach a point where a fully battery-electric vehicle is the same price than an equivalent petrol or diesel car. Plus, there are still some government grants to make charging infrastructure cheaper, including the OZEV EV ChargePoint grant. Aimed at people either living in rented properties or who own a flat with dedicated off-street parking, it provides up to £350 off the cost of buying and installing a home charger.

If you drive a petrol or diesel car, it’s definitely not fuelling itself whilst you read this. Sure, you can stand there holding the pump whilst looking at your phone, but your car can’t fuel itself without your help (plus, we don’t recommend this for safety reasons!). But if you own an EV, it’s entirely possible. 

That’s because when you need to recharge, you don’t need to detour to a petrol pump and waiting for it to refuel whilst standing in a smelly forecourt. Instead, you can simply plug it in to charge, walk away, and do something better with your time (like remind yourself of why your EV is so great by reading this article). 

Plus, cars spend around 95% of their lifetime parked. With an electric car, you can make use of that time to put energy into them either at their destination or, more importantly, at home – something combustion vehicle owners can only dream of! 

Modern EVs also often have ranges of 200+ miles, so even if you commute to work every day it’s unlikely you’ll need to recharge every day. But, importantly, you have the ability to when you get home, and wake up every morning to a fully charged car. It’s hard to explain what a quantum leap in convenience this is until you try it for yourself. 

You may have heard that driving an electric car can be cheaper than a petrol or diesel car in the long run and that’s true. Charging at home, comparing and switching to the best energy tariff and using available grants are some ways to make running an electric car cost less than an ICE car.

But with increasing costs for everyday items like groceries and other purchases, the car industry is not shielded from the impact of price rises. A significant cost associated with an electric car is insurance. In this article, we’ll compare how much it costs to insure an EV, how it compares to other cars and factors that affect the price of a policy.

Insurance is a business of managing risk. A policy acts as a safety net, protecting you from financial loss from an accident, theft or other damages. Depending on the risk level an insurer assigns to you, your insurance policy will either be below or above average or somewhere in between. Whether you have an EV or ICE vehicle, the insurer will consider risk factors such as the type of car, usage, driver’s history and where the car is parked overnight. So in that regard, they aren’t that much different.

Most EV drivers have access to and benefit from off-street parking, with 76% using home charging on a driveway or in a dedicated parking spot as their primary method of charging. At the same time, the differences in technology between EVs and ICE cars also have an impact on the overall cost of a policy. Petrol and diesel cars have been long-established while electric vehicle tech is newer, which influences the cost of insurance.

While EVs are on the rise, they are currently more expensive to insure than ICE cars. There are a few reasons why that’s the case:

• Repair cost and parts availability – EVs are newer to the market than other ICE cars, meaning parts may be less available or specialised and their cost could be higher. An insurer will consider this when making their calculations.

• Car value – The price tag of a new car plays a part in determining your insurance premium. On average, EVs have a higher list price than petrol or diesel cars, meaning it will cost more to replace a stolen or totalled electric car.

• Specialised mechanics – You may need to attend a specialised garage with mechanics who are familiar with electric cars, which can come at an extra cost.

• Performance and speed – The rate of acceleration and power of a car will be considered when putting it in an insurance group. The electric motor in EVs provides instant power, making them accelerate faster than many ICE cars, which some insurers may class as a risk.

• Security and safety – Many modern EVs are kitted out with helpful features like cameras and pedestrian detection software to avoid collisions. Anything like this that reduces the likelihood of a claim will be seen in your favour.

Trends suggest that as EVs become more mainstream, insurance costs are gradually decreasing. There are a number of factors that influence this shift in insurance pricing for electric cars, which will ultimately convince more people to switch to electric driving.

There are now more EVs on UK roads than ever – over 1.1 million! This rise has the effect of making electric cars more common, meaning an increasing number of mechanics and garages will be trained to service and maintain them and parts will become more available.

Adding to this, EVs are becoming more accessible as list prices come down, with many carmakers offering competitively priced entry-level and mid-range models. Putting it simply, a cheaper car will generally cost less to insure.
 

So, is electric car insurance cheaper?

While initially more expensive, electric car insurance premiums are becoming cheaper over time. Factors such as specialised mechanics, low availability of parts and the overall car value have contributed to higher insurance costs in the past. However, as more EVs are registered in the UK, more mechanics learn about EV technology and parts become increasingly available, you should see insurance costs come down. For potential EV buyers, this makes switching to electric financially more viable, allowing them to make the right choice for their wallet and planet.

Let’s start with an overview of the cost of running an electric car vs petrol car in the UK:
 

• Purchasing price: EVs still tend to cost more than ICE cars of similar size and specification, although their prices are coming down.

• Road tax: Fully battery electric vehicles (BEVs) currently pay no road tax in the UK, a potential saving of hundreds of pounds a year. This will change in April 2025.

• Electricity vs fuel prices: In the last year, electricity and fuel prices have risen, making it more expensive to charge a battery and fill up a tank.

• Maintenance: Data shows that EVs cost less to service and maintain than petrol cars.

• Clean air zones: A number of cities across the UK have introduced zones in which vehicles that don’t meet minimum emissions requirements must pay a daily charge, such as the Ultra Low Emissions Zone in London. EVs are exempt from these chargers and depending on the city, some private petrol and diesel cars have to pay this cost.

Recent data from comparison site Compare the Market revealed that electric cars are £528 cheaper to own and run than petrol cars. The main reasons for this are the current road tax exemption and lower fuel costs.

But will this substantial difference in cost remain? Let’s take a closer look at upcoming changes to road tax and compare electricity and petrol prices.

Road tax

The Vehicle Excise Duty (VED), often referred to as road tax, requires petrol, electric and any other car owners to tax their vehicles on a yearly basis. As of 2024, EVs don’t have to pay road tax, but must still be registered for tax. They are also exempt from the Expensive Car Supplement, which applies to new ICE cars with a listing price higher than £40,000.

All of this will change from 1st April 2025, when new road tax rules for zero emission EVs will be introduced. Like petrol and diesel cars, new cars with a sale price above £40,000 registered after this date will be liable for the Expensive Car Supplement. This comes on top of the £180 standard rate of road tax, which EVs will start to pay from this date onward.

For example, if you buy a new EV on 1st April 2025 for a listing price of £45,000, you will pay:

• £180 of road tax per year, every year

• From the second year, £390 of Expensive Car Supplement per year for a total of 5 years

• Plus, a first-year rate of £10

The first-year rate is applied to any new car purchased and can make a significant difference to costs during your first year of car ownership. While the rate will be capped at £10 for EVs, ICE cars can expect to pay up to £2,605 depending on the CO2 emissions rating.

So if you are planning to buy a new electric car from 1st April 2025, you can expect similar costs to buying a new, low emissions diesel or petrol car.

Electricity vs petrol

Since the introduction of the energy price cap on 1st January 2019, the price per kWh unit of electricity has increased by 68% from around 17p to 28.62p over 5 years. In the same time, prices for petrol have only increased around 13%.

External factors have influenced the rise in energy costs in recent years. While this increase has reduced the savings associated with electric cars, drivers still make savings using electricity over petrol fuel.

Tip: To maximise your savings as an EV driver, use your home charger whenever you can as this is the most cost-efficient way to top up your battery.

You can further reduce the cost of running an electric car by taking up government grants available to you. If you live in a flat that you own or rent a flat with dedicated off street parking, you can get up to £350 off the cost of buying and installing a home chargepoint. Find out more about the OZEV Grant in our guide.

Car manufacturers are working on battery alternatives to the lithium-ion batteries currently found in EVs. One potential option is the solid-state battery, which could increase capacity of electric cars drastically. Importantly, carmaker Toyota claims that solid-state batteries could be cheaper to produce than current EV batteries. This has the potential to bring down prices for electric cars and make them more accessible to the wider market.

With the sale of new petrol cars due to be banned in the UK in 2035, it’s worth considering the potential savings and future-proofing an electric car can offer you.

The majority of mainstream insurance companies now insure electric cars. Despite some difficulties in the early days of electric motoring, firms like Aviva, LV, Direct Line and Admiral have all integrated EVs into their quotation systems.
 

This is great news for drivers as it helps make insuring an electric car as straightforward as insuring a petrol/diesel vehicle.
 

Some vehicle manufacturers provide insurance packages as an option to customers, as with traditional internal combustion engine (ICE) vehicles.

If a mainstream insurer doesn’t offer the premiums or service you require, specialist electric car insurance companies can offer more tailored policies for low emission vehicles.

With all of these options, it’s easier to find electric car insurance now than it was when EVs first hit the streets. You can visit MoneySuperMarket or Compare The Market to find the best insurance for your electric car and compare quotes from different providers.

Find the right electric vehicle for you

Currently, insurance is higher for electric cars than a petrol or diesel vehicle. The insurance industry generally applies a higher group rating to electric cars compared to traditional ICE vehicles, this is because servicing and parts for electric vehicles are currently more specialised. 

For example, the lowest insurance group for a VW Golf is 7, compared to its electric equivalent VW e-Golf, which is insurance group 15.

However, it’s important to keep in mind that the insurance group rating of a car is only one factor taken into account when insurance companies calculate your insurance quote. The other key factor is the risk profile of the driver of the car.
 

As EVs become more commonplace, and ultimately the first choice for drivers, it is likely the relative insurance costs will become lower than those for traditional petrol/diesel vehicles. Prices will also drop when the insurance market for EVs becomes more competitive through more demand.

As electric cars operate differently to (and are less common than) traditional ICE vehicles, they do present some unique issues for insurers such as:

• Costs of specialised parts.
• Repairs by specialist mechanics.
• Expensive batteries.

At present, this means electric car insurance policies are slightly more expensive than an equivalent ICE vehicle. As more electric vehicles become available and with the government's ban on new petrol and diesel cars coming into force in 2030, the cost of insurance will reduce and eventually become cheaper than their ICE counterparts.

Switching from a combustion engine to an electric car comes with a lifestyle shift. You no longer need to make trips to the petrol station, and instead, you use electricity to charge the battery in your car. Many EV drivers will invest in a charger to power their car conveniently from home. A dedicated charger tops up your battery faster than a standard 3-pin plug and is cheaper than public charging.

Buying a home charger is a large purchase decision and the cost of a device can vary, depending on specifications like power rating, tethered vs untethered cable, storage box, and so on. That’s why choosing an EV charger with a warranty is a good idea.

Before taking the plunge and purchasing your home charger, familiarise yourself with the terms of any warranty agreement like the one for our Solo 3S.

EV chargers are often exposed to the elements, with most placed outside on a wall or in a partially covered area. This means charge points like the Solo 3S are built to be durable and withstand a wide range of weather conditions throughout their lifetime.

While common issues with EV chargers can be fixed over the air, meaning over Wi-Fi using software updates and troubleshooting, there can sometimes be other problems that require someone to fix your charger in person.

Luckily, charging devices are typically covered by an EV charger warranty to guarantee repairs and replacements when things go wrong. You would usually expect to receive a product warranty for higher-value purchases like washing machines or cars, so it makes sense for EV chargers to come with a policy to protect your investment.

Take note of the length of your warranty when you buy and install a home charger, because they’re typically limited to a few years

EV charger repairs can be costly depending on the damage that has occurred. The exact cost can be difficult to predict, that’s why it’s even more important to choose a home charger that offers a warranty. You’ll be covered for certain types of faults within the policy timeframe.

In the best-case scenario, you’ll never have to claim on the policy. It gives you peace of mind that if something goes wrong and you do need it, you’ll be covered.

We’ve got you covered at Pod Point. Our home and workplace chargers are protected by a comprehensive and industry-leading 5-year warranty from the day of installation when bought from our site directly.

Generally, our warranty will repair or replace your home charger when parts break prematurely or the device doesn’t function as expected. You should check our Terms of Service before using your Solo 3S for the very first time. Accidental damage, wear-and-tear, tampering with the installed charging device or using it in a way it’s not intended can void your warranty.

If you treat your Solo 3 well, it’s unlikely you’ll need to make use of the warranty. Having a policy to fall back on is reassuring nonetheless, making the investment into a charger easier. 

Charging an electric car at home costs about £13 for a full charge* and is the most convenient and cost-effective way to keep your car fully charged. Most drivers will charge their electric car overnight, waking up to a full battery every morning.

• Average domestic electricity rate in the whole of the UK is about 24.5p per kWh**.
• Fully charging a 60kWh electric car will cost around £15 (depending on where you live) and give you about 200 miles of range.

By switching to a dual-rate electricity tariff designed specifically for EV drivers you could reduce this even further.

*Costs calculated at 24.5p/kWh based on usable battery is ~54kWh (90%).
**Please note, energy prices vary and can go up and down. To find your current cost per kWh, please check your electricity bill or contact your provider.

Find out more about the home charging options available and how fast you can charge your car.

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* You can calculate the cost to fully charge your own car by using the formula:
  Tariff (e.g. 24.5p/kWh) * Battery size (e.g. 100kWh) / 100 = Cost to fully charge (e.g. £24.50).
** Hyundai Tucson PHEV is a plug-in hybrid - this is the cost per mile, when running solely on electric power.

Don't see the model you were looking for in this table? Browse other EVs here.

Find out more about EV home charging.

The cost of charging an electric car at work can vary between organisations with some choosing to provide free charging while others set a paid tariff.

• Some employers offer free charging as a staff incentive.
• Others opt for a time-based tariff to encourage sharing of charging stations.
• Another model is to offer free employee charging for a set period of time and a fee after this time to encourage employees to vacate charging spaces.

Find out more about Workplace Charging.

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If you switch from a diesel or petrol to an electric car and start charging at home, you’ll inevitably see an increase in your electricity bill - simply because you’re using more energy than before to charge your EV. At the same time, you’ll be making savings as you no longer need to fill your tank at the petrol station. Your car’s fuel cost becomes part of your electricity bill.

Is it cheaper to charge an electric car at home or a charging station?

It’s generally cheaper to charge your electric car at home than at a charging station. The average cost for home charging is 32p per kWh and 48p per kWh for a public charging station.

When it comes to home charging, you can leverage comparison sites and switch providers to get the best rate, keeping your per kWh price low. You won’t find much of a price difference in comparable public chargers, so “shopping around” for a cheaper public charger can sometimes be more effort than it’s worth.

Charging your electric car while out and about is a great way to top up your battery.

• On most modern networks you can use a free-to-download mobile app to find chargepoints and start your charge.
• Some older public chargepoints require an RFID card (similar to a contactless debit card) to start charging which can be ordered online. This method is slowly being phased out.
• For app-enabled chargepoints, if the host has set a tariff, you will be able to pay for your charge in app. 

Find out more about how to access public charging here.

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Rapid chargers are typically found in motorway service stations and range from being free to one of the more expensive ways to charge.

• Most network rapid chargers cost 74p/kwh which is about £19 for 30 minutes of charging (as of May 2023).
• The Tesla Supercharger Network has points across the UK which are either free (dependent on the vehicle age) or pay-per-use for owners of Tesla electric vehicles.
• Other sites can be found around the UK and typically have an associated tariff that is chosen by the operator.

Most charging stations have a set per kWh price, but some public charging stations are free. You’ll usually find them at destinations like supermarkets, where you can use them to top up while shopping.

Some employers have even adopted free EV charging as an employee incentive at their offices. Speak to your employer to find out if your workplace offers free or reduced-price electric car charging.

Rapid chargers offer great convenience to EV drivers who need to recharge their batteries in a short space of time, often to continue an onward journey. The increased charging speed means you can charge a typical 60kW electric car from empty-to-full in just 30 minutes. The time saving and convenience comes at a cost, making this option more expensive than home charging or other public charging.