Other cost benefits
- Fuel Tax
You’ll probably be aware that the government levies significant taxes on the price of fuel. Currently that’s 58p in every litre of petrol and diesel sold.
A battery powered EV will pay no fuel duty.
Owners will however have to pay VAT on the electricity used to charge the vehicle but at 5% this is generally much lower than fuel tax.
If you drive a hybrid you will have to pay fuel duty whenever you fill up in the normal way.
- Congestion charge
For drivers in and around London there is a further benefit. All EVs are currently eligible for a 100% discount on the Congestion Charge. With standard rates of £11.50 per day payable, this could be potentially worth £2,000 a year.
- Filling Up
Yes, last but not least, there’s the cost of filling up itself. Fuel costs are low due to the competitive price of electricity as well as the efficiency of the EVs themselves. Fuel costs can be as low as 3p a mile depending on your tariff, which means if you drove 10,000 miles a year, you’d save £800 on fuel alone.
We’re sure you won’t buy an EV simply because it’s exempt from car tax but it helps. Additionally, with already announced car tax changes coming in 2017 that reduce the relative attractiveness of low emission vehicles (by increasing the tax on them) the advantage of driving an EV is increasing.
So if you’re thinking about getting an EV, why not start a quote now and find out how much the insurance could be?