⚡ Includes free monthly car cost calculator
Running a car costs the average UK driver around £290 per month in normal conditions, though fuel price spikes - like those seen in early 2026 following the Middle East conflict - can push that figure significantly higher. This guide breaks down every cost you need to know about, and includes a free calculator so you can work out your own monthly figure.
Fill in the fields that apply to you. We've included typical UK averages as a starting point - just change the numbers to match your situation.
Your car finance adds a significant amount to your monthly costs. If you're considering a new deal in future, our car finance guide explains the key differences between PCP and HP agreements.
The average UK driver spends around £3,484 a year keeping their car on the road. That works out at about £290 per month or 49p for every mile driven. But this is just an average. Your costs will depend on things like the car you drive, where you live, and how many miles you cover.
The main costs fall into two groups. There are fixed costs that you pay whether you drive or not - like insurance, road tax, and your MOT. Then there are running costs that go up or down based on how much you use your car - mainly fuel, tyres, and repairs.
For most drivers, fuel is the single biggest ongoing expense. As of April 2026, the average price of petrol in the UK is around 157p per litre. Diesel is significantly more at around 190p per litre. Both have risen sharply since February 2026 following conflict in the Middle East, which disrupted oil supplies through the Strait of Hormuz.
How much you spend on fuel depends on three things: how many miles you drive, how efficient your car is, and the price of fuel where you fill up. A car doing 40 miles per gallon (mpg) that covers 7,100 miles a year will use about 807 litres of fuel. At 157p per litre for petrol, that's roughly £1,267 per year or £106 per month. When fuel prices were lower in late 2025, the same driver would have paid closer to £1,080.
If you charge an electric car at home using a standard tariff (around 24.5p per kWh), it costs roughly 7p per mile. That's about half the cost of petrol. Over 7,100 miles, you'd spend around £500 a year on electricity compared to over £1,200 on petrol at current prices. Charging at public rapid chargers is more expensive though - up to 65p per kWh at some networks. Read our guide to electric car insurance for more on EV ownership costs.
You can cut your fuel costs by shopping around. Supermarket petrol stations are usually 3-5p cheaper per litre than branded ones. That could save you over £100 a year on its own. Driving smoothly and sticking to 60mph on motorways also makes a real difference - speeding up to 80mph uses about 25% more fuel.
Insurance is one of the biggest fixed costs of owning a car. According to the ABI, the average UK driver paid around £559 per year for comprehensive cover in Q4 2025 - down around 10% from the year before. But this varies hugely depending on your age, where you live, what car you drive, and your driving history.
Young drivers face the highest costs. If you're aged 17-20, you could pay anywhere from £1,500 to over £3,000 a year. Our young drivers insurance guide explains why premiums are so high and what you can do about it. Black box insurance is worth looking at too - it can cut costs by 20-40% if you drive safely.
The good news is that shopping around really works. Comparing quotes from multiple insurers is one of the simplest ways to save money. Our guide to lowering your car insurance premium has seven proven tips.
Road tax, officially called Vehicle Excise Duty (VED), is a fixed yearly cost. From April 2026, most cars registered after April 2017 will pay a flat rate of £200 per year - up from £195. If your car had a list price above £40,000 when new (or £50,000 for electric cars), you'll pay an extra £425 on top for the first five years after the first year.
Older cars registered between 2001 and 2017 pay a different rate based on their CO2 emissions. Some low-emission older cars pay nothing at all, while the dirtiest pay over £700.
One big change worth knowing about: electric cars lost their free road tax in April 2025. If you drive an EV, you now pay the same standard rate as everyone else.
Once your car is three years old, it needs an MOT test every year. The maximum a garage can charge for a car MOT is £54.85, though most charge between £30 and £45. Some garages offer free MOTs when you book a service at the same time.
The MOT test itself is only part of the story. If your car fails, you'll need to pay for repairs too. The average repair bill after a failed MOT is between £150 and £300. Common fail items include lights, tyres, and suspension - some are cheap fixes, while others can be costly.
Servicing is separate from the MOT. A basic service typically costs £100-£200, while a full service runs £200-£400 depending on the car. The average UK driver spends about £500 per year on servicing and repairs combined. Older cars tend to need more work, so it's worth putting aside £30-£50 a month if your car is over five years old.
EVs have fewer moving parts than petrol or diesel cars. There's no engine oil to change, no exhaust system, and the brakes last longer because the motor does a lot of the slowing down. On average, servicing an electric car costs 30-40% less than a petrol or diesel one.
On top of the big expenses, there are a few smaller costs that add up over the year. Not all of these will apply to everyone, but they're worth factoring in if they're part of your driving life.
Parking: If you pay for parking at work or regularly use pay-and-display, this can easily add up. Some city centre workers spend £50-£100 a month on parking alone. The London congestion charge is now £18 per day.
Breakdown cover: A basic policy from the major providers costs around £40-£80 a year. Comprehensive cover with home start and onward travel can cost £100-£200.
Tyres: Most tyres last 20,000-30,000 miles. A set of four mid-range tyres costs around £200-£400. Spread over their life, that's roughly £70-£120 a year for an average-mileage driver.
Car washing and cleaning: A regular wash costs £5-£10 a time. If you wash your car every couple of weeks, that's £130-£260 a year.
To give you a rough idea, here's what the typical yearly cost looks like for three different types of driver.
These figures don't include the cost of buying the car or any finance payments. They're just the costs of keeping it on the road. If you're paying for a car on finance, you'll need to add those monthly payments on top. Your actual mileage plays a big part too - check out our average mileage guide if you're not sure how you compare.
1. Compare your insurance every year. Your renewal quote is rarely the best deal available. Shopping around could save you hundreds - our guide to lowering your premium explains how.
2. Fill up at supermarkets. They're usually 3-5p cheaper per litre than branded stations. Over a year, that's a worthwhile saving.
3. Drive smoothly. Harsh braking and heavy acceleration waste fuel. Gentle driving could cut your fuel bill by 20-30%.
4. Keep your tyres pumped up. Under-inflated tyres increase fuel use by 3-5%. Check them monthly.
5. Don't skip your service. A well-maintained car is more fuel-efficient and less likely to hit you with a big repair bill.
This guide focuses on running costs - the day-to-day expenses of keeping your car on the road. But if you're thinking about the total cost of car ownership, you'll also need to consider the purchase price, depreciation (how much your car loses in value each year), and any finance payments.
Depreciation is often the biggest single cost of owning a car. A new car typically loses 50-60% of its value in the first three years. A car bought for £20,000 might only be worth £8,000-£10,000 after three years. Buying a car that's two or three years old is one of the best ways to avoid the steepest depreciation.
Cars in lower insurance groups cost much less to cover. If you're buying a new car and want to keep your overall costs down, our cheapest cars to insure guide shows which models attract the lowest premiums.
If you're financing your car, those monthly payments are one of the biggest costs of car ownership. It's worth comparing car finance deals to make sure you're not paying more than you need to. Even a small difference in interest rate can save you hundreds over the life of the agreement. Our car finance guide explains the differences between PCP and HP and what to look out for.
The average UK driver spends around £290 per month on running costs including fuel, insurance, road tax, MOT and servicing. However, this figure can vary significantly depending on how many miles you drive, your car's fuel type, and current fuel prices. Fuel price spikes like those in early 2026 can push monthly costs noticeably higher.
For most drivers, fuel is the biggest ongoing running cost, followed by insurance. At current prices, a petrol car covering 7,100 miles a year could spend over £1,200 on fuel alone. If you include the cost of buying or financing a car, depreciation is often the single largest expense overall.
Yes, in most cases. Charging an electric car at home costs roughly 7p per mile compared to around 17-22p per mile for petrol at current prices. EVs also have lower servicing costs because they have fewer moving parts. However, public rapid charging is more expensive, and EVs now pay road tax at the same rate as petrol and diesel cars.
The average UK comprehensive car insurance premium was £559 per year in Q4 2025, according to the ABI. This was down around 10% from the year before. Your actual cost depends heavily on your age, location, car, and driving history - young drivers aged 17-20 often pay £1,500 to £3,000 or more.
The quickest wins are comparing your insurance at renewal rather than auto-renewing, filling up at supermarket fuel stations which are typically 3-5p cheaper per litre, and driving smoothly to improve fuel efficiency. Keeping your tyres properly inflated and staying on top of servicing also helps avoid costly breakdowns and repairs.
Fuel prices rose sharply from late February 2026 following the US-Israel strikes on Iran, which disrupted oil supplies through the Strait of Hormuz. Petrol increased by around 25p per litre and diesel by nearly 50p per litre over six weeks. Prices have begun to fall back as wholesale oil costs ease, but remain well above late-2025 levels.
From April 2026, most cars registered after April 2017 pay a flat rate of £200 per year. Cars with an original list price above £40,000 (or £50,000 for electric cars) pay an additional £425 for the first five years. Electric cars lost their free road tax exemption in April 2025 and now pay the same standard rate.
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