The regulations proved hugely controversial, but the 20 mph speed limit seemed to make car insurance cheaper.

This week, a leading price comparison website reported that UK car insurance prices have suffered their biggest annual fall in more than a decade, with the average cost of insurance falling by £161, or 16%, in the past 12 months.

It represents some much-needed good news after a tumultuous few years in which many drivers have suffered record premium increases, with some seeing costs double. But car insurance is still generally much more expensive than before: average UK premiums are 33% higher than two years ago, before the big rise in 2023.

Confused.com, which publishes the figures, said drivers now pay an average of £834 for comprehensive car insurance. This is down from £995 a year ago and is the lowest price in 18 months.

While this year's decline is partly attributable to new competition among insurance companies and improvements in vehicle safety features, Confused.com CEO Steve Dukes also pointed to the introduction of Speed ​​control zone.

He said: "Some UK insurers have observed that areas with 20mph speed limits reduce the frequency of claims - a key factor in the cost of car insurance."

“While many drivers find these speed reduction zones frustrating, it is positive to see the bright spot this brings to driver costs.”

The implementation of 20 mph speed limits has become a hot topic in some areas in recent years. Wales introduced a default speed limit of 20mph in built-up areas in September 2023, but after a backlash, the Welsh Government said some stretches would revert to 30mph.

In England, cities including London have introduced 20mph zones. TfL said nearly 165 miles (265 kilometers) of its roads are now subject to the speed limit and more plans are in the pipeline. Reports emerged this week that 20mph speed limits are expected to be introduced on roads in residential areas across Manchester, as well as in the city centre.

The first sign that 20mph zones could cut car insurance costs while lowering speeds and reducing road casualties came in June last year, when car insurer esure reported that vehicle damage claims in Wales had fallen by a fifth following defaults One introduced restrictions.

The company said at the time that the speed limits were "clearly having an impact" and later said the average driver could save £50 a year on their car insurance if the zones were rolled out nationwide. British towns.

Confused.com says that while the average price of a new policy is more than £160 cheaper than a year ago, customers who shop around appear to be benefiting from these savings. In fact, more than half of motorists who received renewal offers in the last three months of 2024 claimed their premiums had increased by an average of £78, according to another poll by the company.

Meanwhile, some motorists have seen bigger price drops than others. The company says younger drivers typically benefit from the biggest savings.

The data comes after other research also showed car premiums are falling.

The good news for motorists is that the cuts are likely to continue. Earlier this month, pricing consultancy Pearson Ham said: "We expect further declines in 2025, with competitive pressures likely to drive further cuts in the coming year."