20mph speed limits could be making car insurance cheaper (Image: Getty)
New 20mph could be having one massive impact on prices, leading experts have warned.
Analysis from has may be helping to reduce insurance premiums for motorists in a major win.
have been introduced in several areas across the UK, and London boroughs are keen on the update.
restrictions but from local residents.
However, investigations now show the controversial new rules may be helping road users in the long run, with fewer claims likely to bring down fees.
Car insurance prices have fallen by over £100 (Image: Getty)
Steve Dukes, Chief Executive of said: “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.
“Though many drivers find these reduced speed zones frustrating, it’s positive to see the bright spot this is creating for drivers’ costs.”
Confused.com said average UK car insurance costs have recorded their biggest fall in over a decade.
The average cost of cover has dropped by a staggering 16% in the past 12 months, with an average of £161 off bills.
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It means motorists will now pay around £834 for a comprehensive car insurance policy, significantly down from £995 last year.
However, not all of the drop is attributable to speed limit changes, with some of the reduction said to be down to renewed competition between insurers.
Meanwhile, improvements in the safety features of vehicles are also understood to play a part in the fall in premiums.
Last year, car insurance firm found insurance claims fell by a staggering 20% after the new limit was launched.
They warned the average driver would save around £50 per year if similar restrictions were introduced across the UK.
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.”