7 Must-Knows for Motorists as new speed limits kick in

As new speed limits take effect across the country this month, Irish motorists are being reminded that breaking these limits, while primarily a road safety concern, can lead to incurring penalty points which has the knock-on impact of pushing up the cost of motoring and their car insurance premium. Penalty points on a licence can result in increased insurance premiums and can also lead to the loss of insurer discounts awarded to those drivers who stay penalty point free.

These changes which came into force on February 7, insurance specialists Gallagher in Ireland are alerting motorists to the fact that there are both safety and financial reasons for good driving behaviour.

The limits introduced are the first in a series of changes which will follow later in the year. These changes have seen the speed limit on many rural local roads changes from 80 kilometres per hour to 60 kilometres per hour.

Geraldine Kelly, Head of Personal Lines at Gallagher in Ireland explained:

“It is very important that drivers are mindful of, and abide by, the new lower speed limits – and also familiarise themselves with the signage around the new limits. Aside from risking their own lives and the lives of others, drivers who breach these new speed limits will incur penalty points if caught. Insurance companies typically raise premiums for drivers with three or more penalty points, though this limit can differ between providers. One of the main reasons insurers do this is because drivers with penalty points are more likely to make claims and claims costs are a key factor in insurance costs. In addition, drivers have to pay a fixed charge fine for speeding and could face disqualification from driving if they consistently speed.

It will take time for some drivers to adapt to the new reduced speed limits but it is very important that they make it their prerogative to do so. Drivers who consistently break the new speed limits could find that it’s only a matter of time before they are disqualified from driving. You will struggle to get an insurer to cover you if you have been disqualified from driving or have a driving conviction. Furthermore, some Irish insurers may refuse to quote you if you have been disqualified in the last seven years while some insurers may not quote for drivers with a disqualification unless they are a current or previous customer.”

Research has shown that there is strong merit in the lower speed limits:

Seven in every 10 fatal traffic collisions happen on rural roads with a speed limit of 80kmh or higher[1].
Speed is a contributory factor in a third of fatal collisions and that reducing speed significantly reduces road deaths[2].
Reducing speed limits has contributed to a 10pc reduction in road fatalities in France[3].

Ms Kelly added:

“The reduced speed limits are a step in the right direction towards tackling the unfortunate increase in fatalities and serious injuries we have seen on Irish roads in recent years. There are too many people being killed and seriously injured on Irish roads. Anything that can be done to stop the upward trend in road crashes and prevent any more families from going through the trauma and heartache of losing a loved one, or having a loved one seriously injured, is worthwhile.

While road safety is clearly the prerogative, there could also be positive financial consequences for drivers. If the lower speed limits have their desired goal of reducing road collisions and fatalities, in time, this should help reduce car insurance premiums as it should bring down claims costs for insurers – a key factor in the cost of insurance.

As the new reduced speed limits kick in, Gallagher is reminding drivers of the following:

Speeding offences carry a penalty of three penalty points – or five if the driver is convicted for the offence in court.
The fixed charge fine for a speeding offence is either €160, €240 or €320, depending on how quickly the fine is paid[4].
Drivers who gather 12 points within three years face automatic disqualification from driving.

[1] As per Road Safety Authority Analysis of Road Traffic Fatalities 1 January to 28 July 2024

[2] As per European Road Safety Observatory report ‘Road Safety Thematic Report – Speeding’

[3] As per Journal of Safety Research

[4] As per RSA’s List of fines for penalty points