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Volvo XC90 Recharge T8 hybrid running costs & insurance

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%)
43-45Three years / 60,000 milesOne year / 18,000 milesFrom £1,142 / £2,283

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.

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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 its electric driving range of over 40 miles. 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, ranging from group 43 for the base Core model to group 45 for the top-of-the-range Ultimate spec. Those ratings are higher than a regular petrol or diesel XC90 model in the same specification, but only just.

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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