Electric Versus Petrol: What’s Cheaper To Run?

Thu 22nd Jul 2021

A newly published index has made claims that electric vehicles are now cheaper to run than their petrol rivals - but only over a seven year period.

The Electric Car Cost Index, published by LV=General Insurance analysed costs such as purchase price, tax, insurance, fuel and maintenance costs to reach its conclusion. In its report it found that one car, the MG ZS EV, had long term savings of more than £13k over the seven years, when bought outright.

The Electric Car Cost Index found that on average, electric models were generally 50 per cent cheaper to run, with an average saving of £109 a month compared to fossil fuel vehicles.

One of the biggest barriers to purchasing an EV remains the initial purchase price, with the market not yet at maturity to offer enticing deals on new electric vehicles. However, with the index revealing savings over a period of time, perhaps more will consider making the leap to electric.

“With this new Electric Car Cost Index we’re really trying to show, in the most comprehensive way, how the costs breakdown for people considering taking the plunge and making an electric model their next car,” said Alex Borgnis, Head of Motor Underwrting at LV=General Insurance.

“While the initial purchase will seem intimidating for some, once you break down the monthly costs, especially on a lease or PCP, and then throw in the lower running costs each year, suddenly it becomes something that provides great value over the course of the ownership period. 

“You really don’t need to remortgage to get yourself on the electric car ladder!”