Drivers who agree to drive at this speed being handed £161 off car insurance
New 20mph speed limits have been linked to a reduction in car insurance costs. Confused.com said average UK car insurance costs have recorded their biggest fall in over a decade with a drop of 16 per cent in the past 12 months, with an average of £161 off bills.
Motorists will now pay around £834 for a comprehensive car insurance policy, significantly down from £995 last year. Steve Dukes, chief executive of Confused.com, attributed part of the decline to renewed competition among insurers and improved vehicle safety features. However, he also highlighted the impact of 20mph speed control zones introduced in various regions.
“Some UK insurers are observing that areas where 20mph zones have been introduced result in lower levels of claim frequency – a key factor in the cost of car insurance,” Mr Dukes said. “Though many drivers find these reduced speed zones frustrating, it’s positive to see the bright spot this is creating for drivers’ costs.”
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Pricing consultancy Pearson Ham recently stated: “We anticipate further declines in 2025, with competitive pressures likely to drive additional reductions over the coming year.” Rob Clark, head of motor underwriting at sure, previously said: “We can see a clear drop in vehicle damage claims in Wales since the 20mph speed restriction was introduced in September 2023.
“During a time when we usually see these claims rise, they dropped and have continued to do so in the first quarter of 2024. The restriction is clearly having an impact.” The zones have been rolled out widely in Wales as well as London too.
While the impact of 20mph zones continues to be debated, the potential for cost savings on car insurance adds a financial dimension to discussions surrounding their implementation. Wales implemented a default 20mph speed limit in built-up areas in September 2023.
In England, cities such as London and Manchester have been expanding 20mph zones, with Transport for London reporting that 165 miles of its roads now fall under this limit.