24-04-2025
- Automotive
- North Wales Live
Full cost of getting an electric car on the road revealed for first time
The full cost of getting an EV on the road for first time drivers has been revealed in the latest edition of MoneySuperMarket's Household Money Index (HMI). New data shows it costs a total average of £16,139 for a driver aged under 25 to buy and run an electric vehicle (EV) as their first car in the UK – more than double the cost of a petrol or diesel equivalent.
Yet younger drivers - whose numbers have dwindled over the last few years due to rising costs - see EVs as a better option to getting on the road. Nearly half (47%) of young drivers aspire to drive one, compared to less than a third (31%) of motorists overall. The research shows a 14% increase in the volume of insurance policies bought through MoneySuperMarket for EVs in Q1 2025 compared to the same quarter in 2024.
A third (32%) of youngsters also plan to delay driving at all until they can afford an EV and nearly one in four (38%) refuse to drive a petrol or diesel as a first car for environmental reasons.
The findings highlight several key challenges for first-time drivers:
High upfront cost: Despite the launch of the UK's most affordable EV earlier this year, the Dacia Spring, the average price of an EV suitable for a first-time driver is over three times the price of a comparable petrol car (£11,335 v £3,218) although more economical second hand EVs are becoming more readily available.
Insurance premiums: Young drivers said the top factor that would make it easier for them to drive an EV was insurance premiums (38%) - however, while these on average are more expensive than petrol cars, EV insurance has become more similar in price, with the average EV premium for an under 25-year-old costing £1,881, compared to £1,621 for fossil fuelled cars. However, there are regional differences. In Birmingham, Nottingham, Liverpool and Edinburgh it is on average cheaper to insure an EV.
Running costs: The HMI shows that 54% of EV drivers charge at home, where it's cheapest. The average young driver spends £276 a year charging their EV - a £312 saving compared to petrol.
Hidden costs: It costs on average £256 more for driving lessons in an EV compared to petrol (£1,947 v £1,691) due to the initial cost of EV vehicles, the demand for EV lessons, and fewer EV instructors. Even though EVs are seen as more reliable as there are fewer parts to go wrong, they can be more expensive to fix if they do break.
Sara Newell, Director of Insurance at MoneySuperMarket, said: 'Young drivers are keen to drive electric cars, but it's still much more expensive for a first time driver to get on the road with an electric car compared to a petrol equivalent. 'But there's light at the end of the tunnel. More electric cars are becoming available, and insurance costs are starting to drop – in some cases, it's even cheaper to insure an electric car than a petrol one for young drivers, especially if you shop around for the best deals."
Elsewhere, MoneySuperMarket's latest Household Money Index reveals that UK households are now spending an average of £1,524.37 per month on bills and daily expenses. This equates to a daily cost of £50.81 in a 30-day month.
With an average gross annual income of £31,889, UK households take home £26,480 after tax each year, or £2,207 per month. Based on these figures, 69% of the average earner's monthly income is spent on bills and outgoings, leaving an average disposable income of £683 per month.
But where you live can make a big difference to how much disposable income you have left each month. In Manchester, residents are spending roughly 84% of their income on everyday costs (£1,967 per month) - the highest proportion in the UK.
At the other end of the scale, people in Edinburgh spend just £1,276 (63%) of their income on this basket of 31 bills and expenses, meaning it's the city where your money goes the furthest. This is nearly 20% less than those in Plymouth.
London now ranks 10th in terms of where your money goes furthest. With average household spending at £1,869 per month, Londoners are allocating around 71% of their income to essential bills.
