Car insurance prices could plummet with 20mph speed limit roads 'clearly having an impact'
Drivers could see their car insurance costs drop with more 20mph speed limits
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Drivers could see their car insurance prices drop in the near future if more 20mph speed limit zones are introduced, according to a leading insurance company.
Wales became one of the first countries in the world to make 20mph the default speed limit on restricted and residential roads last September in a bid to slash emissions and cut congestion.
While it was met with backlash from motorists, the number of road traffic accidents has fallen, as well as claims for car accidents.
Since the speed limits were introduced almost one year ago, car insurance providers have seen a 20 per cent drop in the number of claims being submitted in Wales.
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20mph speed limits are seen on restricted and residential roads across Wales
GETTYRob Clark, head of motor underwriting for Esure, said there had been a "clear drop in claims" coinciding with the decision to drop speed limits across the country.
He added: "During a time when we usually see these claims rise, they dropped and have continued to do so in Q1 2024. The restriction is clearly having an impact."
The Welsh Government has since rolled back some of the original proposals, calling on residents to speak with their local authorities about where the speed limits should be used appropriately.
This step-change has been backed by drivers as many want to see speed limits kept on roads which most need it, including near schools, community centres and assisted living facilities.
New Transport Secretary Louise Haigh recently said that any changes to speed limits and the introduction of new Low Traffic Neighbourhoods should be done on a local level, rather than having the Government intervene.
More cities are also rolling out new speed limits, following the example of Wales. Scotland is expected to introduce new legislation for average speed limits soon.
One of the most supportive organisations of the new speed limits - 20's Plenty - has supported the measures being taken to boost road safety.
Rod King MBE, founder of 20's Plenty, also highlighted the impact it's having on motor premiums with fewer accidents being seen across the country.
He 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 claims.
"The reductions are both statistically significant and timely in showing the reduction in road danger from implementing 20mph limits on a national basis.
"We thank Esure for their interest and action in identifying and demonstrating these benefits to communities and drivers."
According to Confused.com, the average UK car insurance price is £882, while it rises to as much as £3,000 for an 18-year-old, further hammering motorists during the cost of living crisis.
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Car accident rates have dropped since 20mph speed limits were introduced
PAIf 20mph speed limits are rolled out further afield, drivers could see their car insurance premiums drop if there are fewer accidents on the road.