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Is an electric vehicle really more expensive than a gasoline car?
Electric vehicles

Is an electric vehicle really more expensive than a gasoline car?

It is often debated that electric vehicles are more expensive then combustion powered vehicles, while the truth lies somewhere in between.
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The acquisition cost of an electric vehicle is usually higher compared to its equivalent combustion powered car due to the high cost of the battery. Nonetheless over the lifespan of the vehicle, owners save a lot of money and the additional acquisition cost are quickly compensated. Here is what you need to know and which cost you have to consider.

1. Acquisition Cost

The acquisition cost of an electric vehicle is higher than that of a petrol vehicle. However the Luxembourgish government highly supports the switch to environmentally friendly cars and encourages citizens by granting a financial aid of up to 8000€ until the end of December 2021, highly reducing the initial acquisition costs. You will find more information on the application process and requirements on and quotes of electric car insurance.

2. Less C02 emission, less taxes

For a 100% electric car, the tax for car registration is the lowest possible of 30€ in Luxembourg. For hybrid cars, ACL offers a car tax calculator based on the CO2 emission of your car but as the CO2 emission is usually lower then for combustion powered cars, there will be a tax advantage.

3. Recharging your car costs less then refueling it

Going electric not only reduces your carbon footprint but also your expenses. The cost per 100 km are considerably lower than for combustion powered cars. In average, an electric car needs 15kwh per 100km while the average cost per kwh is 0,19 cents in Luxembourg adding up to 2.85€ per 100km. However, this number can vary depending on the type of your car and electricity provider. In terms of type of car it depends on the size of your battery mentioned in kwh. Here you can compare the different models and battery sizes of electric/hybrid vehicles.

How to calculate cost per full charge?

Cost of a full charge = (Size of your battery in kwh) x (cost per kwh)

Compared to a combustion powered car, with an average fuel consumption of 6 liters per 100km and the current fuel prices of around 1,15€[1] per liter it would cost you 6,9€ hence 2-3 times more than for an electric car.

4. Maintenance

Furthermore, maintenance costs are way lower for electric vehicles then for combustion powered vehicles. Even though the battery comes at a higher price it is rare that you will have to replace it and most car manufacturers give you a warranty of at least 8 years.

Moreover, on electric car, you’ll only have to worry about tires, windscreen wipers and washer fluids and brake pads. The maintenance cost of an electric car is about 25% less than that of gasoline car.

Overall, electric/hybrid car owners not only contribute to a more sustainable future but also reduce their own expenses in the long term. While the acquisition costs might seem discouraging at first sight, it becomes clear that they will quickly be compensated by various factors such as current financial support, lower running and maintenance costs as well as tax advantages.

More information about Drive Electric, the first insurance policy with a range of services specifically designed for drivers of electric cars.

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