Why the 20mph Limit is Impacting Your Car Insurance Premium
An insurance company revealed why individuals residing in 20mph zones receive discounts on their insurance premiums. Esure stated that drivers in these areas are likely to enjoy an average reduction of £50 compared to others. The Welsh Government implemented legislation for a default 20mph speed limit on Welsh roads previously set at 30mph.
Esure reported a notable 20% decrease in car accident claims in Wales post the nationwide 20mph limit enforcement in September 2023. They attributed this to safer driving conditions in these zones. Peter Martin-Simon, Esure CCO, explained, “
The speed limit came in during September 2023…There was a 20% reduction in accidents in areas with 20mph limits compared to those without over a three-month period.
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The reduced accident rates lead to lower insurance premiums for drivers in these areas, with an average £50 markdown. Mr. Martin-Simon clarified that the impact was not limited to residing exactly on a 20mph street but included driving in such areas. Despite this, he acknowledged that overall insurance prices have been increasing due to various factors.
Factors influencing insurance costs include a broad range of elements, with the average premium currently around £550-£600. The £50 discount for those in 20mph zones aims to reflect the decreased accident rates in these areas. Mr. Martin-Simon emphasized that the evidence strongly supports the notion that 20mph limits contribute to safer roads and reduce accident frequency.
Esure’s implementation of a new live streaming data platform enables quick assessment of accident data post-20mph limit implementation. The company can promptly analyze the impact and make necessary adjustments based on real-time information. This proactive approach allows for effective monitoring of the road safety impact of 20mph zones.