Honda e review: running costs & insurance
The Honda e is as cheap to run as ever, but it’s now more expensive than electric family cars with more than twice the range
| Insurance group | Warranty | Service interval | Annual company-car tax cost (20%/40%) |
|---|---|---|---|
| 25-32 | 3yrs/unlimited miles | 1yr/12,500 miles | From £149/£298 |
While the starting price of the Honda e has been steadily climbing since it launched in 2020, it’s still as cheap to run as ever. Company-car users in particular will find the Honda e remarkably cheap: Benefit-in-Kind tax of 2% means you’ll only need to pay a negligible £149 and £298 per annum respectively for 20% and 40% taxpayers until the 2024/25 financial year at least.
Honda e insurance group
The base Honda e falls into insurance group 25, while the Advance (the only model currently available) and Limited Edition model fall into groups 29 and 32 respectively. The e’s insurance ratings are quite a bit higher than those for the Ora Funky Cat or Fiat 500. Even the MINI Electric betters it fractionally, being rated in groups 22 and 23.
Warranty
Honda offers a three-year/unlimited-mileage warranty on all of its new cars, which can be extended for an additional cost. The e's battery is warranted for eight years/100,000 miles.
Servicing
The Honda e, like all other models from the Japanese brand, requires servicing every 12-months/12,500 miles – whichever comes soonest. This is a shame as some other electric cars only require a service every two years, cutting running costs further. The car will warn you when it requires a service, though, and the intervals may vary depending on the sort of driving you do.
Road tax
The Honda e is currently zero-rated for VED (more commonly known as road tax) in the UK, but that will come to an end in 2025. Like all electric cars, it’s also exempt from London's Ultra-Low Emissions Zone (ULEZ), as well as the Congestion Charge – the latter once again only until 2025.
Depreciation
The Honda e is pretty expensive to buy and things aren’t exactly helped by its poor residuals, leading to even pricier monthly finance costs. According to the latest industry figures, the Honda e is expected to hold onto 42% of its value over three years and 36,000 miles of ownership – slightly behind that of rivals. With this in mind, we can’t recommend private buyers purchase the Honda e new; steep depreciation means it can be found as a bargain on the used market, though.