20mph speed limits linked to lower insurance premiums says esure

20mph speed limits could save drivers £50 annually on car insurance, according to leading insurer esure.

The insurer has revealed that introducing 20mph speed zones in towns and cities across the country, as has been done in Wales, could lower car insurance premiums by around £50 per year for the average driver.

These findings come after Wales adopted the controversial default 20mph speed limit on restricted roads in 2023, leading to a reported 20% drop in car accident claims.

The UK Government is backing the rollout of 20mph zones, with Transport Secretary Louise Haigh offering her “absolute support” for local authorities that want to implement these schemes.

Esure’s Chief Customer Officer, Peter Martin-Simon, praised the positive impact of 20mph speed limits: “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.”

Esure has proactively reduced car insurance premiums by approximately 10% for drivers in Wales since the introduction of the lower speed limits, showing clear financial and safety gains.

The insurer noted that within three months of identifying a new 20mph zone, they would reduce policy prices for customers, as they have already done in Wales.

Partnering with 20’s Plenty, a not-for-profit organisation advocating for 20mph limits in residential areas and town centres, esure supports efforts to normalise 20mph zones nationwide.

Rod King MBE, Founder of 20’s Plenty, reacted positively to esure’s findings, saying, “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. English drivers will continue to face higher premiums until the current patchwork of 20mph limits by exception is consolidated into 20mph as a norm.”