# Electric vs Hybrid vs Petrol: A Running-Cost Comparison

By EV Charge Cables · Published 18 October 2026

**The short version**

For most UK drivers who can charge at home, a full electric car has the lowest overall running costs, though hybrids and petrol remain competitive in some circumstances.

- Charging at home on an off-peak tariff is usually the cheapest way to run a car per mile
- Servicing costs are lowest for EVs, as there is no engine oil, timing belt, or exhaust to maintain
- Company car BIK tax strongly favours EVs; check current rates on gov.uk

Comparing the running costs of electric, hybrid, and petrol cars shows that full electric vehicles tend to have the lowest ongoing costs for most UK drivers, particularly those who can charge at home on an off-peak tariff, though the picture is more nuanced when you factor in insurance, depreciation, and your individual mileage. Hybrids sit in the middle ground: cheaper to run than a pure petrol car but not as cheap as a full EV if you drive mostly longer journeys. The right choice depends on your circumstances rather than a single figure, and for many drivers the total cost of ownership matters more than any one category. Use our [car registration checker](https://www.evchargecable.co.uk/) to find the right charging cable when you make the switch.

| Cost category | Full electric (BEV) | Hybrid (PHEV/HEV) | Petrol |
| --- | --- | --- | --- |
| Fuel / charging per mile | Lowest, especially on a home off-peak tariff | Middle (depends heavily on how often you charge a PHEV) | Highest |
| Servicing | Lowest: no oil changes, fewer brake jobs thanks to regen | Middle: still has a combustion engine requiring servicing | Highest: full combustion drivetrain service schedule |
| Road tax (VED) | Check current rates at gov.uk; rates have changed in 2025 | Check current rates at gov.uk; varies by CO2 emissions | Highest, based on CO2 band |
| MOT | Required from year 3; simpler drivetrain, fewer components to fail | Required; full combustion checks still apply | Required; full combustion checks apply |
| Insurance | Can be higher than petrol equivalents; get quotes from multiple insurers | Generally similar to petrol; varies by model | Varies widely by model and driver profile |
| Depreciation | Historically faster in early years, but the used market is maturing | Broadly similar to petrol; varies by model | Well-established used market; fairly predictable |
| Company car tax (BIK) | Much lower rate than petrol; check current bands on gov.uk | Lower than petrol for PHEVs with low CO2; check gov.uk | Highest BIK rates |

### Which is cheapest to fuel or charge per mile?

For most UK drivers who can charge at home, a full electric car is the cheapest to run per mile. Home charging on a standard tariff is cheaper than petrol per mile, and on a dedicated off-peak EV tariff the saving is larger still. Overnight charging can bring the cost per mile down to a fraction of petrol at current pump prices, though the exact figure depends on your energy tariff and mileage. Check current rates with your energy supplier rather than relying on figures that change frequently. A plug-in hybrid (PHEV) is cheapest when driven mostly on electric power with regular charging, but if you rarely plug it in the fuel costs climb closer to a conventional car. A traditional self-charging hybrid sits in the middle: better fuel economy than a straight petrol, but no all-electric running.

### How do servicing costs compare?

Electric cars have far fewer moving parts than combustion engines. There is no engine oil to change, no timing belt, no exhaust system, and regenerative braking means brake pads typically last longer than on a petrol car. Scheduled servicing for an EV usually covers tyres, brake fluid, cabin air filters, and a general software and safety check. Hybrids still carry a full combustion engine, so they need all the usual petrol servicing items on top of any hybrid-specific components. Petrol cars have the most complex drivetrains and the highest servicing costs on average. Over several years, the servicing saving on an EV can be meaningful, though the exact gap varies by model and how much you drive.

### What about road tax and VED?

Road tax (Vehicle Excise Duty, or VED) has historically been free for fully electric cars, but the rules changed in 2025 and EVs are now subject to VED. The rates and bands change, so always check the current position on [gov.uk](https://www.gov.uk/vehicle-tax-rate-tables) before making a decision based on tax. Petrol cars pay VED based on their CO2 emissions, which can be substantial for higher-emitting models. Hybrids vary depending on their emissions rating. The tax landscape for EVs and low-emission vehicles is evolving, so treat any specific figure you read online with caution and verify it directly with DVLA or gov.uk.

### Is electric car insurance more expensive?

Insurance for EVs has tended to run slightly higher than equivalent petrol models, mainly because repair costs can be greater: specialist technicians, high-voltage components, and the cost of battery repair if damaged in a collision all factor in. However, the market is changing as more insurers gain experience with EVs and competition increases. The difference between insurers can be large, so comparing multiple quotes is particularly important for an electric car. Do not assume a quote from your existing insurer is competitive. Hybrid insurance tends to sit closer to petrol equivalents. Use a comparison site and get at least three or four quotes before renewing or buying a new policy.

### How does depreciation compare across the three?

Depreciation is the largest cost for most car owners, often exceeding fuel and servicing combined. EVs have historically depreciated faster than petrol equivalents in the first year or two, partly because the technology was moving quickly and buyers were cautious about used battery health. That picture has been improving as the used EV market matures, battery warranties become better understood, and more buyers actively seek used electric cars. Hybrids have a more established used market and tend to hold their value reasonably well. Petrol cars have the most predictable depreciation curves. If you are considering an EV, it is worth checking the residual values for the specific model you are interested in, as they vary considerably.

### What about company car drivers?

For employees choosing a company car, Benefit-in-Kind (BIK) tax is a major factor, and this is where electric cars have a very clear advantage. The BIK rate for a zero-emission electric car is far lower than for a petrol equivalent, making the monthly tax cost to the driver substantially less. This is one reason salary sacrifice schemes for EVs have become popular: the combination of low BIK and National Insurance savings can make a new EV more affordable than it first appears. The exact BIK percentage rises incrementally each tax year, so check the current band on [gov.uk](https://www.gov.uk/government/publications/rates-and-allowances-income-tax/income-tax-rates-and-allowances-current-and-past) before making a decision. PHEVs also attract lower BIK rates than petrol, but not as low as a full EV.

**Quick tool:** compare the yearly running cost against a petrol car with our free [EV vs petrol cost calculator](https://www.evchargecable.co.uk/tools/ev-vs-petrol-cost-calculator).

### Frequently asked questions

#### Is a full electric car always cheaper to run than a petrol car?

For most UK drivers who can charge at home, yes: fuel costs, servicing costs, and company car tax all favour the electric car. However, insurance can be higher, and depreciation has historically been steeper on some models. Whether an EV is cheaper overall depends on your mileage, charging access, and the specific models you are comparing. High-mileage drivers who can charge at home tend to see the clearest savings.

#### Are hybrids worth it if I cannot charge at home?

A self-charging hybrid (HEV) can still save on fuel compared with a straight petrol car, as it recaptures energy under braking and uses the electric motor at low speeds. A plug-in hybrid (PHEV) without home charging is less compelling: you will be running mostly on petrol, carrying the extra weight of a battery you are not using, which can hurt fuel economy compared with a lighter HEV or even a modern petrol.

#### How do I find out the current VED rate for an EV?

The Vehicle Excise Duty (VED) rates for electric cars changed in 2025 and may change again. Always check the current rates directly on gov.uk under "vehicle tax rate tables" rather than relying on articles or comparison sites, which may be out of date. Your registration document and the DVLA's online vehicle enquiry service can also confirm what your specific car is rated at.

#### Does a hybrid need less servicing than a petrol car?

Not significantly less. A hybrid still has a combustion engine that requires oil changes, filters, and the full range of combustion servicing. The main potential saving is on brakes, since regenerative braking reduces wear. For substantially lower servicing costs, a full electric car is the bigger step change: no engine oil, no timing belt, and no exhaust system to maintain.

#### Will running cost savings on an EV cover the higher purchase price?

This depends on how long you keep the car, how much you drive, and how you charge. Higher-mileage drivers charging mainly at home tend to recoup more of the price premium over time. Lower-mileage drivers or those relying mostly on public charging may find the payback period is longer. Run your own numbers based on your actual mileage and your energy tariff, rather than relying on generalised comparisons.

#### Does it cost more to insure a hybrid than a petrol car?

Not usually by a large margin. Hybrids are well understood by insurers now, and most are rated similarly to their petrol equivalents. The main variable is the model itself: a more expensive car costs more to repair and insure, regardless of powertrain. Always compare quotes across several insurers before committing, as the spread between providers can be significant for any car type.

Running cost comparisons are useful but always depend on your personal circumstances. If you are moving to electric and want to make sure you have everything you need, browse our [range of EV charging cables](https://www.evchargecable.co.uk/collections/ev-charging-cables) and pick up any accessories you need from our [EV accessories collection](https://www.evchargecable.co.uk/collections/ev-charging-accessories). Our [guides](https://www.evchargecable.co.uk/blogs/guides) cover everything from home charging to long-distance planning to help you get the best from your car.

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