Insurance company pledges to cut costs for drivers if more 20 mph speed limits are introduced

Reducing speed limits to 20mph could reduce annual policy costs for drivers, according to a leading insurance firm.

esure says the average driver could be looking at a £50 saving per year on their car insurance premium if 20mph zones, such as those introduced in Wales last year, were rolled out in towns and cities across the UK.

The new Labour UK Government has indicated it is supportive of more local authorities following Wales’ lead, with Louise Haigh, the Transport Secretary, saying local authorities would have her “absolute support” to introduce the schemes in towns and cities.

The Welsh Government introduced legislation for a default 20mph speed limit on restricted roads with exceptions decided by local authorities in September 2023.

Speeding offences

Data released in August by the GoSafe road safety partnership revealed that speeding offences on 20mph and 30mph roads in Wales were down by almost a third in July compared with the same month last year.

Overall, offences in built up areas decreased to 14,421 compared to 20,303 in July 2023.

The provisional police recorded collision data also shows that the number of people killed or injured on Welsh roads is 16% lower than in the same period in 2023.

Earlier this year, esure reported a 20% drop in claims for car accidents in Wales since this nationwide limit was introduced.

Now the firm has found that extending the restrictions across the United Kingdom would result in an average £50 saving for drivers.

Benefits

esure’s Peter Martin-Simon, Chief Customer Officer, said: “We are already seeing the benefits in places where 20mph speed limits have been introduced. Not only does this make roads safer for drivers and pedestrians, but an extension would also materially reduce the number of car accidents, as well as the severity and cost of those accidents.

“Within three months of us identifying a new 20mph zone, we will proactively reduce policy prices for customers like we have already done in Wales.”

The insurance company says it reduced car policy premiums by 10% for drivers in Wales at the end of 2023.

The esure Group is partnered with 20’s Plenty, a Not-for-profit organisation, which is campaigning for a speed limit of 20mph to be normal in residential areas and in town and village centres across the UK.

Its founder Rod King MBE said: “This confirms on a national scale the benefits from lower speeds not only reducing casualties and danger but also providing a benefit to drivers in reduced insurance premiums.

“These premium reductions have been delivered in Wales because 20mph is now the norm for urban/village streets. English drivers will continue to face higher premiums until the current patchwork of 20mph limits by exception is consolidated into 20mph as a norm.

“We thank esure for their interest and action in identifying and demonstrating these benefits to communities and drivers.”

Built-up areas

Wales became the first country in the UK to drop the default speed limit from 30mph to 20mph in built-up areas last September.

A Senedd petition against the law broke all records as it was signed by nearly 470,000 people.

The Welsh Government says cutting the speed limit will protect lives and save the NHS in Wales £92 million a year.

It predicts the move will save up to 100 lives and 20,000 casualties in the first decade.

The project is costing around £33 million to implement and has proven controversial, with reports of the new 20mph signs being defaced in areas including Conwy, Gwynedd, Newport, Torfaen, Wrexham and Flintshire.

The Welsh Conservatives opposed the scheme and cited Welsh Government documents estimating the cost to the Welsh economy of increased journey times at anywhere between £2.7 billion and £8.9 billion.