Car Insurance -
Motorway speed limits to be cut - 26/10/2007
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Car insurance premiums might feel the impact from government plans to slash motorway speed limits to 40mph.
Many more speed cameras will also be installed on the thoroughfares in order to enforce the limits, transport secretary Ruth Kelly said yesterday.
Drivers cutting their speed generally has a beneficial effect on road accident rates - which in turn could affect car insurance costs for the good.
Ms Kelly's announcement follows the release of Department for Transport (DfT) statistics suggesting that more than half of UK motorway users broke the current 70mph limit last year.
Speaking to the Times newspaper, she said that a recent trial of the speed limit on a section of the M42 was markedly successful.
"The trial shows there is a real culture change," she claimed. "People are focusing on the way they are driving and there is almost complete compliance with the limit.
"It's about trying to encourage a regular flow of traffic rather than stop-start conditions."
The DfT announcement follows its publicising of plans for drivers to be allowed to use the hard shoulder at peak motorway times in an attempt to cut traffic jams.
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