Real-World Impact: How Do Costs Compare for the Average Driver?

For the average UK motorist, the decision between purchasing an ICE car or an EV is not purely theoretical. It’s based on practical concerns: how much money will they need to shell out each year for fuel, maintenance, insurance, and other costs? Let’s break down how much each vehicle type costs the average driver annually.

Fuel Costs: The Hidden Expense

One of the most significant ongoing costs for an ICE car owner is fuel. Let’s consider the example of a mid-range petrol car that achieves 40 miles per gallon. Assuming the average UK driver covers 10,000 miles annually, they would need around 250 gallons of fuel. At a cost of £1.35 per litre (around £6.14 per gallon), this would cost £1,535 annually just to keep the car running.

Now, compare this to an EV. With an average efficiency of 4 miles per kWh, the same 10,000-mile journey would require 2,500 kWh of electricity. At an average cost of 15p per kWh, the total annual cost of charging would be £375. This gives a substantial saving of £1,160 each year. Clearly, if you’re planning to drive around 10,000 miles annually, an EV wins on fuel costs alone.

Maintenance: Less Is More

The complex engines in petrol cars mean more things can go wrong. The components under the hood—engine, transmission, exhaust, and other systems—require regular maintenance, repairs, and sometimes pricey replacements. Over time, this can add up. For the average driver, this could mean paying around £300 annually in maintenance and repairs.

On the other hand, EVs are significantly less complex. Without an internal combustion engine, exhaust system, or gearbox, there are fewer parts that need regular servicing. In fact, many EVs require little more than an annual tyre change and brake servicing (due to regenerative braking). This means that the average annual maintenance cost for an EV is around £150, half the cost of an ICE car.

Insurance: The Silent Killer

When it comes to insuring an EV, many people are surprised to learn that premiums are often higher. The primary reason for this is the higher cost of replacing an EV’s battery, which can run into the thousands of pounds. Although the battery warranty covers much of this cost, insurance companies still charge more for EVs to account for this potential repair cost.

Typically, an ICE car will cost around £600 per year to insure. For an EV, this is likely to rise slightly, with premiums averaging £700 annually. While this isn’t a dramatic increase, it’s a factor to bear in mind when deciding between the two options.

Charging Infrastructure: Is It Really a Barrier?

Home Charging: A Convenient Option

One of the selling points of EVs is the ability to charge them at home. If you have off-street parking, you can easily install a charging point, usually for between £800 and £1,200. The good news is that there are still some government grants available to offset part of this cost, reducing the initial investment.

If you charge overnight, your electricity rates will be lower due to off-peak tariffs, often around 8p per kWh. At this rate, recharging an EV’s 60 kWh battery would cost around £4.80, giving you a range of 240 miles on a full charge. That’s about 2p per mile, compared to the 15p per mile it costs to fuel a petrol car.

However, what if you don’t have access to off-street parking or your local area lacks sufficient charging infrastructure? This is a significant consideration for those who live in urban areas with limited parking. In this case, access to public charging stations becomes a more pressing concern.

Public Charging: The Price of Convenience

Public charging stations are becoming more widespread, especially in urban centres. However, there’s a price for convenience. Rapid charging stations, which can charge an EV to 80% in around 30 minutes, cost anywhere between 30p and 85p per kWh, depending on the network and location. At this price, charging a typical 60 kWh battery could cost between £18 and £51, depending on the provider.

For drivers who rely on public charging, the costs can add up quickly. If you’re using public chargers regularly, the convenience of rapid charging comes at a significant premium, especially for long-distance journeys.

Range Anxiety: A Potential Pitfall

Despite advances in battery technology, one of the major concerns for potential EV buyers is range anxiety—the fear of running out of charge before reaching a charging station. While modern EVs boast ranges of up to 300 miles on a full charge, this concern is still very real for many drivers.

In comparison, ICE cars can simply refuel at the nearest petrol station, which are more readily available and often open 24/7. While EV infrastructure continues to improve, particularly in major cities, the concern about running out of charge on longer trips still exists for some.

Long-Term Costs: Total Cost of Ownership

Let’s talk numbers. Over a five-year period, the total cost of owning an ICE car includes the initial purchase price, fuel costs, maintenance, insurance, taxes, and depreciation.

Total Cost of Owning an ICE Car (5 years):

• Upfront cost: £22,000
• Fuel: £1,535 per year x 5 = £7,675
• Maintenance: £300 per year x 5 = £1,500
• Insurance: £600 per year x 5 = £3,000
• VED: £195 per year x 5 = £975
• Depreciation: £11,000
• Total cost: £22,000 + £7,675 + £1,500 + £3,000 + £975 + £11,000 = £46,150

Now let’s look at the EV.

Total Cost of Owning an EV (5 years):

• Upfront cost: £46,000
• Fuel: £375 per year x 5 = £1,875
• Maintenance: £150 per year x 5 = £750
• Insurance: £700 per year x 5 = £3,500
• VED: £195 per year x 5 = £975
• Depreciation: £18,000
• Charging infrastructure (Home charge point installation): £1,000
• Total cost: £46,000 + £1,875 + £750 + £3,500 + £975 + £18,000 + £1,000 = £71,100

Although EVs are more expensive upfront, their running costs, particularly fuel and maintenance, make them an attractive choice in the long run. The break-even point, where the EV’s total cost of ownership becomes lower than an ICE car’s, is roughly around the 5-year mark, depending on individual driving habits and fuel prices.

Category	ICE Cars	EVs
Upfront Cost (New Car)	£22,000	£46,000
Fuel Cost per 100 miles	£15.00	£3.75
Annual Maintenance Cost	£300	£150
Insurance Premium	£600	£700
VED (Annual)	£195	£195
Depreciation (5 years)	£11,000	£18,000
Home Charging Installation	N/A	£800-£1,200
Public Charging (per kWh)	N/A	£0.30-£0.85
Congestion Charge (per day)	£12.50 (London)	Varies (exempt from ULEZ)
Environmental Impact	High emissions	Zero tailpipe emissions

The Bottom Line: Which Is Cheaper?

So, is an EV really cheaper to run than an ICE car? For most people, the answer is yes, but with some caveats. While the upfront cost of an EV is higher, the savings on fuel and maintenance make it a far more cost-effective choice in the long term. Additionally, with government incentives and the expansion of charging infrastructure, EVs are becoming an increasingly viable option for UK drivers.

However, the decision ultimately depends on personal preferences. Those who drive long distances regularly may still prefer the convenience and familiarity of an ICE car, while those who stick to city driving or have access to home charging may find the EV to be the better option.

The numbers speak for themselves: EVs are likely the future, but we are not quite there yet.