New EU speed limiter tools could soon affect UK car insurance prices

EU: Speed limiters to be implemented from 2022

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Experts at Confused.com warn insurance premiums “could be reduced” if speed limiters are found to dramatically reduce the number of accidents on the road. The specialists said if the technology was found to reduce accidents there would be “fewer car insurance claims” made.

As prices are always linked to the risk of a driver having a crash, prices would then begin to fall.

They said: “The European Transport Safety Council believes that the technology could reduce road collisions by 30 percent and deaths by 20 percent.

“If those forecasts prove accurate, then as well as making the roads safer there should be fewer car insurance claims.

“Fewer claims could see premiums fall. After all, insurers base their premiums on risk.

“And if there’s a lower risk of a claim being made, the cost of insuring your driving could be reduced.”

Although not yet confirmed, the UK is likely to adopt the new limiters for new car sales depot leaving the EU.

The UK has so far followed many EU driving rules to standardise production for manufacturers.

Back in 2012, the RAC said insurance prices for the new MG6 had “dropped significantly” after becoming the first model to fit a speed limiter in its vehicle.

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The RAC said the car’s restricted 120mph top speed reduce its insurance group to 14E.

In comparison, a new Ford Mondeo with the same power output was in group 18.

The RAC said the reduction was because speed limiters are “proven to reduce accident rates”.

They said this could then be “passed on to the customer through a reduction in premiums”.

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