Electric cars continue to grow in popularity across the UK, with more drivers switching from petrol and diesel in search of lower running costs and a reduced environmental impact. But with changes to electricity prices, road tax rules and charging infrastructure, how much does it really cost to run an electric vehicle (EV) in 2025?
In this guide, Insurance Revolution breaks down the real-world costs of owning and running an electric car in the UK this year.
Electricity (Charging) Costs in 2025
Charging costs depend heavily on where and when you charge your car.
Home Charging
For drivers with access to home charging and an EV-friendly tariff:
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Typical home electricity price (off-peak EV tariff): around 27p per kWh
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Average EV efficiency: 3.5–4 miles per kWh
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Cost per mile at home: around 5–7p per mile
For a driver covering 10,000 miles per year, this works out at approximately:
£500–£700 per year in electricity costs
Source:
https://www.rac.co.uk/drive/electric-cars/charging/electric-car-public-charging-costs-rac-charge-watch/
https://www.allcarleasing.co.uk/blog/miles-per-kwh/
Public Charging
Public charging is significantly more expensive:
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Slow/Fast public chargers: around 53p per kWh
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Rapid/ultra-rapid chargers: 70–80p per kWh
If you rely heavily on public charging, your running costs can rise to a similar level as a fuel-efficient petrol car.
Maintenance and Servicing Costs
Electric cars are generally cheaper to maintain than petrol or diesel vehicles because they have:
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Fewer moving parts
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No oil changes
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No clutch or exhaust system
In 2025, average annual servicing and maintenance costs for an EV are estimated at:
£300–£400 per year
This is typically 30–50% cheaper than maintaining an internal combustion engine vehicle.
Source:
https://www.rac.co.uk/drive/electric-cars/running/the-costs-of-running-an-electric-car/
Road Tax (VED) for Electric Cars
From April 2025, electric cars are no longer exempt from road tax.
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Standard Vehicle Excise Duty (VED) for EVs: £195 per year
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EVs with a list price over £40,000 may also pay the Expensive Car Supplement
This change reduces some of the historic cost advantage EVs once had.
Source:
https://www.rac.co.uk/drive/electric-cars/running/electric-car-road-tax-guide-do-i-need-to-pay/
Insurance Costs for Electric Cars
Insurance costs vary widely depending on the driver and vehicle, but EV insurance can be:
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Comparable to petrol/diesel for smaller EVs
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Higher for high-value or performance electric cars
Contributing factors include higher repair costs, specialist parts and battery replacement costs.
At Insurance Revolution, we often see EV insurance premiums vary significantly depending on model choice, driving history and repair availability.
Total Running Costs: Electric vs Petrol (2025)
Based on current data, a typical UK electric car in 2025 costs approximately:
£1,100–£1,400 per year to run, including:
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Electricity
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Servicing and maintenance
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Road tax
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Basic running costs
An equivalent petrol vehicle typically costs £2,200–£2,500 per year to run.
Source:
https://www.fleetnews.co.uk/news/ev-running-costs-50-less-than-equivalent-ice-car
Upfront Purchase Cost: An Important Factor
While running costs are lower, purchase prices remain higher.
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Average new EV price in the UK (2025): around £46,000
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Many petrol vehicles cost significantly less upfront
As a result, drivers should look at total cost of ownership, not just running costs.
Source:
https://octopusev.com/ev-hub/how-much-does-an-electric-car-cost
Is an Electric Car Cheaper to Run in 2025?
✅ Yes, if:
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You charge mainly at home
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You drive moderate annual mileage
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You choose a sensibly priced EV
⚠️ Less so, if:
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You rely on public chargers
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You drive high mileage
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The purchase price stretches your budget
Final Thoughts from Insurance Revolution
Electric cars remain significantly cheaper to run than petrol or diesel vehicles in 2025, particularly for drivers who can charge at home and keep mileage sensible. However, changes to road tax and electricity pricing mean EV ownership now requires more careful planning than in previous years.
If you’re considering an electric car and want to understand how insurance, running costs and ownership really stack up, Insurance Revolution can help you make an informed decision.
