What are the benefits of an electric car?
Key takeaways
Electric cars offer a number of environmental benefits, from improving local air quality and reducing noise pollution to reducing your long-term carbon footprint.
Electric cars can be cheaper to run than petrol and diesel vehicles, with lower maintenance , fuel/energy costs, and company car tax, as well as ULEZ and Clean Air Zone exemptions.
You may benefit from the Government’s Electric Car Grant or the Chargepoint Grant for Renters and Flat Owners.
What are the main benefits of owning an electric car?
The benefits of owning an electric car range from environmental friendliness to economic savings, and a potentially less stressful driving experience. Advantages include:
Savings for your wallet
Electric cars generally have lower running costs than internal combustion engine (ICE) vehicles. Savings can include:
Fuel costs: If you can charge your electric car at home rather than using public charging you can benefit from cheap overnight electric vehicle energy tariffs, (currently as low as 6.99p/kWh), which can make EV charging much cheaper than refuelling a petrol or diesel car.
Maintenance costs: Electric cars require less servicing and maintenance as they have fewer moving parts, which can lead to significant savings over time.
Company car tax: If you’re a company car driver, you’ll pay the lowest benefit-in-kind (BIK) tax rate of 4%.
London Ultra Low Emission Zone (ULEZ) and Clean Air Zone (CAZ) exempt: Fully electric cars meet the London ULEZ standard, as well as Clean Air Zones in the UK so you don’t need to pay to enter the zones or face any penalty charge notices (PCNs).
Government grants and incentives
There are two main electric vehicle grants:
The Electric Car Grant: More than 50 new electric vehicles are eligible for a discount of either £3,750 or £1,500, which is applied to the purchase price by the car dealer. Find out which zero emission vehicles are eligible for a grant.
Chargepoint Grant for Renters and Flat Owners: If you own and live in a flat, or rent and live in any residential property, you can get 75% off the cost of installing an electric vehicle chargepoint socket at your property, up to a maximum of £500. You’ll need to have an eligible electric vehicle and a private off-street parking space to qualify for the grant.
Good for the environment
Here are some of the environmental perks of driving an EV:
Reducing your carbon footprint: With no tailpipe emissions, you're contributing to a significant reduction in greenhouse gases.
Improved air quality: The absence of CO2 emissions means that electric cars help combat air pollution, leading to healthier communities.
Less noise pollution: The near silence of an electric motor is a stark contrast to the roar of a combustion engine.
Driving experience
Electric car drivers often appreciate the difference between driving an EV and ICE vehicle, such as:
Instant acceleration: Electric cars deliver maximum torque as soon as you press the accelerator.
Near-silence: The lack of traditional engine noise makes the cabin on an EV quiet and potentially more relaxing.
No gear changes: All electric cars are automatic.
Regenerative braking: Although regenerative braking can feel strange at first, EV drivers often appreciate the energy-recovery benefit.
💡 Top tip: By switching to an electric vehicle (EV) now, you’ll also be ahead of the UK Government’s phase out of new conventional petrol and diesel cars from 2030 and new hybrid vehicles from 2035.
Are there any drawbacks to owning an electric car?
Yes, there are drawbacks to owning an electric car, including higher upfront costs. If you’re considering an electric car, it’s worth thinking about the following points before you make your decision:
Higher upfront costs
Electric cars, depending on the model you choose, can be a little pricier to buy compared to their petrol or diesel counterparts, even after factoring in Government Grants.
Charging infrastructure
The UK’s EV charging infrastructure is growing rapidly, with 120,388 public EV chargers at the end of April 2026, according to ZapMap, but there are still significant regional differences as Greater London and the South East have far more public chargers than the North and Midlands.
Rural areas also still lag behind, particularly in terms of ultra-rapid chargers which charge EVs in the shortest time.
The cost of charging an EV at public chargers vary significantly, depending on the network provider, location of the charger and speed of the charger. For example, it could cost 89p/kWh to charge at a BP Pulse ultrafast charger (DC 150kW+) compared to 65p/kWh for fast (AC 7kW) chargers.
Long-distance range
While modern electric cars do have an improved range, with many new battery electric vehicles capable of more than 300 miles on a single charge, older EV models which have a shorter range, might not suit you if you’re a high-mileage driver.
What is electric vehicle excise duty (eVED)?
Electric vehicle excise duty (eVED) is a new pay-per-mile tax for electric vehicle drivers, which will take effect in April 2028. It means that all electric car and plug-in hybrid electric vehicle (PHEV) drivers will have to pay an additional charge based on the amount of miles they drive each year, as well as Vehicle Excise Duty (VED) or road tax.
When launched, the charge will be 3p per mile for battery electric cars, and for plug-in hybrid cars, it will be 1.5p per mile.
💡 Top tip: To see how much you might have to pay a year when the eVED tax starts in 2028, add your estimated mileage into our electric vehicle tax calculator.
Are electric vehicle exempt from the Congestion Charge?
No, electric cars are no longer exempt from the London Congestion Charge. You do get a 25% discount if you register on Auto Pay, but this reduces to a 12.5% discount from 4th March 2030.
How much will I pay to insure an electric car?
The average annual price of electric car insurance in 2026 is £562
This is more expensive than diesel (£515
How can I choose the right electric car?
The electric vehicle market is burgeoning with options, from compact city cars to spacious SUVs. But with so many choices, how do you find the one that's right for you?
To help you find your perfect EV, we have a handy Electric Vehicle Tool where you can compare electric vehicles based on features like efficiency and charging speed, price, and car insurance quotes.
