Why owning an electric car could be more expensive than you think – and it’s set to get worse
A CAR expert has revealed why owning an electric car could be more expensive than you might think – and it’s a situation that looks set to get worse in the next year or two.
A report has revealed that the average EV running costs have jumped £158 year-on-year, mainly due to higher insurance prices.
The average premium for electric vehicles has increased by £121 year on year to £687.
In comparison, the typical insurance premium for a petrol-fuelled car is £659, having risen by £101 compared to the previous year.
According to car experts, the increase in insurance costs is partially due to insurers facing more expensive charges to repair vehicles.
The Association of British Insurers has stated that vehicle repair costs have increased by 33% over the year since Q1 2022 to £1.5 billion, the highest figure since 2013.
As EVs are typically more expensive to purchase than petrol-fuelled equivalents, they are often more costly to repair.
Replacing some parts of electric vehicles, such as new batteries, can cost around £9,000.
EV owners will face significantly higher running costs in two years’ time (from April 2025) when they will be required to start paying Vehicle Excise Duty.
This will cost battery electric vehicle owners £180 per year from the second year of car registration at the current tax rate.
And many electric owners will also have to pay the expensive car supplement from 2025.
This is currently set at £390 per year for cars with a list price of £40,000 or more in their second to sixth years of registration – which means that EV owners could soon need to pay £570 more in road tax each year.
Julie Daniels, motor insurance expert at Compare the Market, said: “Drivers who’ve made the switch to an electric vehicle will be glad to see they are often substantially cheaper to run than petrol-fuelled cars.
“As well as helping the environment, EV owners benefit from fuel and tax savings.
“However, the high upfront cost of buying an electric car and installing a home charging point will prevent many drivers from being able to afford this option, especially during the cost-of-living crisis.
“The rising cost of car insurance for electric vehicles and higher road taxes from 2025 may also make switching to an electric vehicle less appealing.
“Any drivers concerned about running costs could potentially cut the cost of their car insurance by shopping around ahead of their policy ending.”
This comes after drivers were issued an urgent warning regarding serious problems with electric cars.
Plus, drivers were warned about a serious problem with electric cars despite their soaring popularity.