Young drivers opt to pay £16,000 more to buy electric cars instead of ICE

Electric cars generally cost more than their ICE counterparts. However, the heftier prices are not stopping younger motorists from embracing e-mobility. According to a study by the insurance comparison site MoneySuperMarket, youthful car buyers are willing to pay a £16,000 premium to own an electric car.

The company reported that 47 percent of the young UK drivers (under-25s) that responded to their poll want to drive electric cars, representing about 31 percent of the survey takers. The results also show that about 31 percent of youngsters will wait until they can afford an EV before starting to drive. Environmental concerns accounted for why 38 percent of the demographic ruled out a petrol or diesel automobile for their first purchase.

Besides the higher EV price tags, younger UK drivers pay more for insurance, with the average premium costing £1,881 for electric cars versus £1,621 for ICEs. They also have to worry about increased taxes as the government began charging vehicle excise duty (VED) on electric cars in April 2025. The new levy adds £620 to the annual cost of operating a new battery-powered vehicle.

Meanwhile, youthful drivers can find solace in the increasing popularity of EVs in the UK. About 190,000 units exchanged hands in 2024, accounting for 2.5 percent of all car sales. It was a jump of 55 percent compared to 2023. They