REDUCING speed limits to 20mph could reduce policy costs for drivers by £50 per year, says insurance firm esure.

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 Government is supportive of local authorities implementing 20mph zones, with Louise Haigh, the Transport Secretary, saying local authorities would have her “absolute support” to introduce the schemes in towns and cities.

esure Chief Customer Officer Peter Martin-Simonesure Chief Customer Officer Peter Martin-Simon (Image: esure)

In September 2023, the Welsh Government introduced legislation for a default 20mph speed limit on restricted roads with exceptions decided by Local Authorities.

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.

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.”

esure reduced car policy premiums by c10% for drivers in Wales at the end of 2023.

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

Reacting to esure’s announcement, 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.”