Average Cost to Run a Car in the UK (2026) — Full Breakdown
Key takeaways
- For a petrol car doing 8,000 miles a year at 35 MPG, my example comes to about £2,879 a year before depreciation, tyres, breakdown cover and parking
- At today's pump prices, fuel is the largest item in that example, about 63% of the total
- The ABI reports an average motor insurance premium of £566 (Q2 2026)
- The standard road tax rate for cars registered from April 2017 is £200 a year
- Depreciation is usually the biggest cost not on this list, because no bill ever arrives for it
It's easy to underestimate what a car costs. Fuel is the cost you notice, but insurance, road tax, the MOT, servicing, tyres and depreciation all add up too.
This guide goes through each cost with figures I could check against a source, and shows an example total. It deliberately avoids quoting a single national "average" as fact. The widely repeated figures I found used different assumptions and years, and I couldn't tie them to a source I could check.
Why there isn't one "average" figure
How much you spend depends on the car, how far you drive, what you pay for fuel or electricity, where you live and who you are as a driver. A single national number hides all of that. The most useful approach is to build your own total from the individual costs below, and the Car Running Cost Calculator does that for you.
For a worked example, this guide uses a petrol car doing 8,000 miles a year at 35 MPG, with the sourced figures for fuel, insurance, road tax and the MOT, and an assumed £250 for servicing. It comes to about £2,879 a year before depreciation.
Fuel costs — the biggest variable
On 14 October 2026 the UK average pump price was 174.1p/litre for petrol and 199.1p/litre for diesel (Fuel Finder UK, using the government Fuel Finder feed). For a petrol car doing 8,000 miles a year at 35 MPG, fuel works out at about £1,808: (8,000 ÷ 35) × 4.546 litres × £1.74.
Diesel costs more per litre but diesel cars often do more miles per gallon, so annual costs can be closer than the pump prices suggest. For example, a diesel at 50 MPG doing 8,000 miles would use about £1,447 of fuel at 199p.
An electric car charged at home costs far less per mile. At 3.5 miles per kWh and 26p/kWh (the Ofgem price-cap average from 1 October 2026 is 26.32p/kWh), 8,000 miles costs about £594. Public rapid charging usually costs much more per kWh.
Car insurance
The ABI reports that the average motor insurance premium in Q2 2026 was £566. That is an average across all drivers, so your own quote could be well above or below it. Age, postcode, claims history, the car and your annual mileage all affect the price.
Penalty points and convictions can raise premiums too. Our Penalty Points Calculator shows when points will come off your licence.
Road tax / VED
Cars registered on or after 1 April 2017 pay a first-year rate based on CO2 emissions, then a standard rate of £200 a year for petrol, diesel, electric and alternative fuel cars. Electric cars registered from 1 April 2025 pay VED too. Cars with a list price over £40,000 (£50,000 for electric cars) pay an extra £440 a year for 5 years.
Cars registered between March 2001 and March 2017 pay by CO2 band, from £20 (Band A) to £790 (Band M). Cars registered before March 2001 pay £230 or £375 depending on engine size. Check the exact rate for your car with our Road Tax Calculator or on GOV.UK.
MOT
The maximum MOT test fee for a car is £54.85, set by the government, and many garages charge less. A car needs its first MOT three years after registration, then every year. The fee covers the test only, and any repairs it finds are extra.
Servicing and repairs
This depends heavily on the car's age and make, and on whether you use a main dealer or an independent garage. I don't have a reliable published average, so the £250 used in this guide is an assumption. Replace it with a quote from your own garage, and expect repair bills to rise as a car gets older.
Depreciation — the cost most drivers ignore
Depreciation is the fall in your car's value over time, and it is usually the largest single cost of owning a newer car. It is also the cost that is easiest to overlook, because you never get a bill for it. The loss is generally steepest in the first few years.
I haven't put a percentage on it because it varies so much between models. To estimate yours, compare what similar cars of the same model, age and mileage are being advertised for now with what they cost new.
Parking and tolls
Costs depend entirely on where you drive. Many drivers pay nothing, while city drivers can pay for permits, car parks and charges. In London, the Congestion Charge has been £18 a day since 2 January 2026 for vehicles that aren't exempt or discounted (electric cars get a 25% discount through Auto Pay). Check TfL for current hours and rules.
Example cost table
This table uses the same formula as our calculator for a petrol car at 35 MPG and 174p/litre. Insurance (£566), road tax (£200) and the MOT (£54.85) are the figures above. Servicing is my own assumption. It is an illustration, not a national statistic.
| Cost category | 5,000 miles | 8,000 miles | 15,000 miles |
|---|---|---|---|
| Fuel (petrol, 35 MPG, 174p) | £1,130 | £1,808 | £3,390 |
| Car insurance (ABI average) | £566 | £566 | £566 |
| Road tax (VED) | £200 | £200 | £200 |
| MOT (maximum fee) | £55 | £55 | £55 |
| Servicing & repairs (assumed) | £200 | £250 | £350 |
| Total (excluding depreciation) | £2,151 | £2,879 | £4,561 |
Not included: depreciation, tyres, breakdown cover, parking, tolls and finance. Everyone's insurance and servicing costs will differ from these.
Calculate your exact running costs
Enter your own figures to get a personalised breakdown of your annual car costs — fuel, insurance, MOT, servicing and more.
Use the Car Running Cost Calculator →How to reduce your car running costs — 7 practical tips
- Compare insurance every year — renewal quotes can be higher than new-customer quotes, so check comparison sites before you renew.
- Protect your no-claims bonus — a long claim-free record usually lowers the price.
- Consider a telematics policy — if you drive carefully and infrequently, a black box policy may cost less, though it isn't right for everyone.
- Get quotes from independent garages — they are often cheaper than main dealers once any warranty has ended.
- Pay VED annually if you can — paying monthly by Direct Debit costs 5% more over the year, and six-monthly payments cost 10% more than half the annual rate.
- Drive smoothly — harsh acceleration and braking uses more fuel and wears brakes faster.
- Check whether you need the car for every journey — for very low mileage, a car club or other options may be cheaper than owning.
For more ideas, see How to Reduce Car Running Costs in the UK.
Frequently asked questions
What is the average cost of running a car in the UK in 2026?
There isn't one reliable figure, because costs depend on the car, mileage, fuel prices and the driver. As an example, a petrol car doing 8,000 miles a year at 35 MPG comes to about £2,879 a year before depreciation, tyres, breakdown cover and parking, using current fuel prices and the ABI average insurance premium.
Is insurance or fuel the bigger cost for most drivers?
In the example above, fuel is larger than insurance at current prices. Insurance varies a lot between drivers though, and for some drivers, such as those with a high-risk profile, it can be the bigger cost.
Why do most drivers underestimate their car costs?
Mainly because depreciation is invisible day to day. It isn't a bill you pay, so it's rarely budgeted for, even though it is often the largest cost of owning a newer car.
Does switching to an EV reduce running costs?
Often it does for fuel, especially with home charging. But insurance, road tax (electric cars registered from April 2025 now pay VED), public charging prices and depreciation vary by model, so the full picture depends on the car. Our EV vs Petrol Calculator gives a like-for-like comparison for your own mileage.
You might also find these useful
Sources
- ABI — Motor insurance claims and premiums, Q2 2026 (average premium £566)
- GOV.UK — Vehicle tax rate tables
- GOV.UK — MOT test fees (maximum car fee £54.85)
- Fuel Finder UK — UK Fuel Price Index (14 October 2026)
- Ofgem — Energy price cap, 1 October to 31 December 2026
- Transport for London — Congestion Charge
Prakash
Prakash is the founder and editor of UK Driving Tools. He maintains the site's calculators and guides and checks the rates and rules they use against official UK sources, such as GOV.UK, the DVLA, HMRC and Transport for London, before publishing.
Pages are drafted with the help of AI tools and then checked by the editor. He isn't a lawyer, accountant or UK-qualified adviser, so every page lists its sources and states what its calculator can't tell you. Nothing on this site is legal or financial advice.
Pages on UK Driving Tools are drafted with the help of AI tools. Before publishing, the figures and rules on each page are checked against the official source named on the page, and calculator examples are tested against the working formula. Pages are updated when rates or rules change. Our Editorial Policy explains the full process, including how to report a mistake.
Spotted a mistake or an out-of-date rate? Let us know and we'll check it against the official source.