A Guide To EV Running Costs

Electric vehicles have gone from a rare sight to a normal one on UK roads, with well over 2.1 million EVs now registered. 

Most drivers know that the purchase price of an EV is typically higher than that of an equivalent petrol or diesel car, so it's the running costs that tend to decide whether to buy an electric vehicle or a hybrid. 

Below, we walk through each running cost you'll encounter as an EV owner, and how the picture has shifted over the past couple of years.

Charging vs fuelling

For most owners, charging at home is the cheapest way to keep an EV moving. At a standard electricity rate of around 24 - 26p per kWh, a full charge for a typical family EV (around a 60kWh battery) works out at roughly £14-£16. 

Switch to an off-peak EV tariff and overnight rates can drop below 6 - 14p per kWh, bringing that same charge down to between £3-£8.50. Per mile, home charging usually works out at 2p to 8p, compared with roughly 13p to 17p a mile for petrol, although these figures depend on your tariff and current petrol prices.

Public charging will cost you more. Rapid chargers at motorway services are more expensive than charging at home, with rates often around 79p per kWh. You might not have a choice on longer trips, but when you can charge your EV overnight at home, you’ll secure the best savings.

Servicing and maintenance

EVs often have far fewer moving parts than a combustion engine. There's no engine oil to change, no gearbox oil, no cam belt, no exhaust system. That strips out several of the jobs that can add up on a petrol or diesel car.

They still need looking after, though. Regenerative braking means the brake pads do less work, which sounds like good news, but pads and discs can actually seize from lack of use if they're not checked. EVs are heavier because of the battery, so tyres tend to wear out faster. And the battery, the most important component, needs its health monitored over time. 

Our Kwik Fit EV Service, for example, recommends servicing every year or at 12,000 miles, whichever comes first. You can always come in, however, for a free battery health check. 

Road tax (VED)

This is the biggest change since electric cars first became popular. Until April 2025, EVs paid no road tax under a UK government scheme aimed at encouraging EV adoption. 

That exemption has now ended. A new electric car pays £10 of Vehicle Excise Duty in its first year, then moves to the standard rate of £200 a year from the second year. EVs registered between April 2017 and March 2025 also pay the £200 standard rate.

There's a second charge to watch if you're buying at the pricier end. The Expensive Car Supplement, sometimes called the luxury car tax, now applies to electric cars with a list price above £50,000. 

Bear in mind the list price includes optional extras, so a few upgrades can tip your car over the threshold.

The rules have moved fast, and there's more coming: the government has announced a pay-per-mile charge called eVED, due in April 2028, set at 3p per mile for fully electric cars and 1.5p per mile for plug-in hybrids, payable alongside standard road tax. 

Company car tax

If you're getting an EV through work, the tax picture is much friendlier. Benefit-in-Kind rates for electric cars are lower than for petrol or diesel cars, at 4% for the 2026/27 tax year, although this is expected to rise over time.

Congestion and clean-air charges

Electric cars stay exempt from the ULEZ in London and from Clean Air Zones in cities such as Birmingham, Bristol and Bath, so you avoid those daily emissions charges. 

The London Congestion Charge, which only affects drivers entering central London, is a separate matter. Until the end of 2025, EVs paid nothing. From 2nd January 2026, they pay a reduced rate of £13.50 per day when registered for Auto Pay, compared with the full £18 charge.

Insurance

Insurance can run a little higher for EVs than for equivalent petrol or diesel cars, largely due to higher repair costs and specialist parts. However, the gap has narrowed as more insurers have got to grips with electric models. 

It's worth getting quotes for the specific car you're considering, since premiums vary widely. Model and provider both play a part, along with your personal risk profile, where the car is parked overnight, and the crime statistics for your area.

Other considerations around owning an EV

Electric vehicle depreciation

Residual values - the estimate for an EV’s worth in the future - were weak for EVs early on, but have since improved as the market matured, as well as following developments in battery technology. The upside for buyers is a growing second-hand market, with plenty of used EVs now available at low prices.

If you're buying used, a battery health check is worth the money, since a worn-out battery is the most expensive thing to fix.

Grants that bring the cost down

The Electric Car Grant takes up to £3,750 off the price of a qualifying new EV. This discount is automatically applied by the dealership, so there's no extra admin or requests to submit before buying your new car. 

There’s also the Electric Vehicle Chargepoint Grant, which can help you with installing a charger if you rent or live in a property with off-street parking. This grant covers up to £500 per socket from April 2026.

Keeping your running costs down

Whether you already drive an EV or you're about to switch, the best way to keep costs predictable is to stay on top of servicing. 

Worn tyres, seized brakes, or a fading battery can be expensive to ignore, which is exactly why an EV Service at your local Kwik Fit centre can help to keep them in check. 

Be sure to take a look at more on our blog for the latest EV and motoring updates, whenever you want to stay in the loop.