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New raft of measures to cut cost of motoring

23 October, 2013

The government has announced a raft of measures intended to help motorists to cut the cost of running a car. They include a crackdown on whiplash fraud, a freeze on MOT test prices and a scheme designed to reduce the cost of fuel at motorway service stations,

Justice secretary Chris Grayling said average motor insurance premiums have already fallen by more than 12% over the past year, equivalent to an £80 reduction on an average policy, thanks to Ministry of Justice reforms to no-win, no-fee deals and action on rogue claims firms, according to new statistics from the AA.

He said: “We are turning the tide on the compensation culture and helping hardworking people by tackling high insurance premiums and other motoring costs.

“It’s not right that people who cheat the insurance system get away with it while forcing up the price for everyone else, so we are now going after whiplash fraudsters and will keep on driving premiums down.”

He announced:

• Whiplash cheats, whose bogus compensation claims have helped to force up average motor insurance premiums, will be targeted by new independent medical panels which will ensure only evidence from accredited professionals can be considered. This will mean people can no longer profit from exaggerated or fraudulent compensation claims but victims with genuine cases can still get the help they deserve. These will be introduced from next year.

• The statutory maximum price of the MOT test for a car will be frozen at £54.85 until 2015 - potentially saving up to £50m for drivers every year.

• New comparison road signs will be trialled which will show prices at different service stations along a motorway, making it easier for drivers to get the cheapest deal and encouraging competition on prices.

• The fees charged for the driving test will be reviewed, including the current £31 for the theory test, £62 for the practical test and £50 fee for the provisional licence, to identify any opportunity to save money for the 1.5m car drivers who take their test every year.