Volvo XC90 Recharge T8 hybrid running costs, insurance, warranty & tax

The XC90 Recharge isn't cheap by any stretch, but for such a powerful luxury SUV, it promises fairly low running costs

Overall rating

4.0 out of 5

Running costs & insurance rating

4.0 out of 5

Fuel Type:
Hybrid Petrol
Insurance groupWarrantyService intervalsAnnual company-car cost (20%/40%)
44-453yrs/60,000 miles1yr/18,000 milesFrom £1,224/£2,447

The Volvo XC90 Recharge T8 is on the pricey side, but that’s no different to any other premium seven-seat SUV, regardless of whether it’s a plug-in hybrid. It does cost a bit more than the petrol and diesel XC90s, but provided you plug in regularly that initial outlay will be offset by lower running costs.

The XC90's electric driving range is the main reason it's cheap to run. If you plug in regularly and do mostly short journeys, you can save a fortune compared to non-electrified alternatives thanks to 43-mile range. But of course the petrol engine will be doing some 25-30mpg in normal driving after you've run out of battery.

Low CO2 emissions of 28-76g/km also make the XC90 a cheap company-car option for such an indulgent big SUV. It falls into a very low BiK tax band, which makes it many thousands cheaper to run as a company vehicle than a non-electrified petrol or diesel XC90. However, a fully electric SUV like the Tesla Model X sits in an even lower BiK band.

Volvo XC90 Recharge T8 insurance group

Insurance-group ratings vary slightly depending on the trim level you go for, but taking our pick of the line-up again, it’ll cost around £630 per year to insure our middle-aged example driver with three points on their licence. This is about the same as for a regular petrol or diesel XC90 model in the same specification.

Warranty

On top of the specific battery warranty, all XC90s get a three-year/60,000-mile guarantee. Like the eight-year battery warranty, this overall package of protection is fairly standard. You also get three years free roadside assistance that covers you Europe-wide.

Servicing

Volvo offers servicing packages for the XC90, where owners can choose the length of the package, but maintenance costs also depend on how many miles you do a year. A three-year fixed-price servicing deal based on an average of 12,000 miles a year comes in at over £1,000 but you can pay with a monthly plan if you prefer.

Road tax

Alternative-fuel vehicles such as this attract a road tax (VED) rate of £155 after the first year, but as the XC90 also costs more than £40,000, you have to pay a £355 surcharge the first five times you tax it, so it’ll cost £510 to tax in years two to six.

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