UK’s 20mph speed limits ‘are cutting car insurance costs’
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Controversial safety policy has helped drive down premiums to 18-month low, says Confused.com. They have proved hugely controversial, but 20mph speed limits appear to be making car insurance cheaper. This week a leading price comparison website reported the biggest annual drop in UK car insurance prices in more than 10 years, with the average cost of cover falling by £161 – or 16% – in the past 12 months.
![[A car travels past a 20mph sign]](https://i.guim.co.uk/img/media/d0f34b2e18af1d96cb226512b95cf1d0067fb883/436_285_4996_2997/master/4996.jpg?width=445&dpr=1&s=none&crop=none)
After a turbulent couple of years during which many drivers were hit with record premium hikes and some saw their costs double, that represents some much-needed good news. But car insurance still typically costs a lot more than it did: the average UK premium is 33% higher than it was two years ago, just before the huge rises that took effect in 2023.
Confused.com, which released the data, says drivers can now expect to pay an average of £834 for comprehensive car insurance. That is down from £995 a year earlier, and is the lowest price recorded in 18 months. While some of this fall has been attributed to renewed competition between insurers and improvements to safety features in vehicles, the chief executive of Confused.com, Steve Dukes, also points to the speed control zones that have been introduced in many areas.
“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 says. “Though many drivers find these reduced speed zones frustrating, it’s positive to see the bright spot this is creating for drivers’ costs.”.
