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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.

In recent years, introducing 20mph speed limits has become a flashpoint in some areas.

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. 

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