One of the UK’s leading price comparison websites believes that recently introduced 20mph speed limits appear to be making car insurance cheaper. Confused.com issued a report identifying the most significant annual drop in UK car insurance prices in more than 10 years, with the average cost of cover falling by £161, or the equivalent of 16%, in the past year. The report says drivers can now expect to pay an average of £834 for comprehensive car insurance, down from £995 a year earlier, and is the lowest price recorded in 18 months.

This drop has been attributed to renewed competition between insurers and improvements to vehicle safety features. The chief executive of Confused.com*, Steve Dukes, also identified other factors, “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.” He added, “Though many drivers find these reduced speed zones frustrating, it’s positive to see the bright spot this is creating for drivers’ costs.”
In recent years, introducing 20mph speed limits has become a flashpoint in some areas. Wales introduced a default 20mph limit in built-up areas in September 2023, but after a backlash, the Welsh government indicated that some stretches of road would revert to 30mph.
In England, cities, including London, have been rolling out 20mph zones, and Manchester is expected to follow suit soon.
Last year, the insurance firm Esure provided the first indications that 20mph zones could bring down the cost of car insurance when they said that claims fell by 20% after the new limit was launched.
Confused.com* said that while the average price of a new policy is more than £160 cheaper than a year ago, customers who were shopping around seemed to benefit from these savings. Meanwhile, some motorists are seeing bigger price drops than others. Younger drivers are typically benefiting from the biggest savings, said the company.
Has your local area implemented 20mph zones? How have you found it?
Let us know in the comments below.
The 20mph limit is only enforceable where there are cameras. Where there are no cameras motorists generally ignore the 20mph limit. Just be vigilant and keep your Satnav/Road Angel up to date.
good idea in some places but stupid idea in others- whats the matter with 25mph in some places – we need graduated speed limits like they have in America much more sensible idea
What a surprise ! Lower speed limits ( if kept to) mean that any accident has a less calamitous effect. More chance of surviving and less horrendous injuries. If only people realised and generally slowed down.
The 20 mph speed limits just increase the cost of doing business in the areas affected because everything takes longer. It is however great news for internet shopping companies like Amazon but at the cost of high street retail jobs.
We have a 20 mph speed zone through the village, but most of the drivers don’t stick to this, we have kids going to catch school buses and residents crossing roads ,side roads from house drives , it’s not just young drivers that speed , it’s all ages. The young drivers ( male/ female) turn the roads into race tracks after dark, we have problems with kids driving after breathing laughing gas , and if we ask the police to intervene they just say they have just 3 on duty officers to cover a 24 miles radius .
its about time the speed limit of vehicles were controlled by pre installed speed controls implanted / mounted at every point as cars enter a area, can’t be hard for the car industry to prefit all new vehicles so they are restricted to the set speed for the area. Emergency vehicles could have overrides so they can execute their job.
The 20mph speed limits are only in place to gather-in fines en-masse. Safety has very little to do with it. It also has a very negative impact on the effects of climate-change.
I dont understand this explanation over the past 2 years insurance has rocketed by 50 to 100 % this fall does not even take rates back to where they were 2 years ago? Or have i got my facts wrong?
When are we going to bring back the man with the red flag to walk in front of cars.