Government reveals plans to cut cost of motoring

Whiplash cheats are to be targeted in plans announced by the Government today to drive down the cost of motoring.

From next year, only evidence from accredited professionals will be considered in whiplash claims, meaning cheats will no longer be able to get away with exaggerated or fraudulent compensation claims.

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Despite a fall in whiplash claims since 2011, half a million claims in 2012 cost insurers £2 billion in payouts and led to an average premium increase of £90 for drivers. Each whiplash claim costs an average of £2,400, with an extra £2,000 in legal costs.

Justice secretary Chris Grayling:

“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.”

Other government plans to cut the cost of motoring include a trial of new motorway signs that compare the cost of fuel at service stations in a bid to encourage more competitive pricing.

In addition, the maximum price of an MOT test will be frozen at £54.85 until 2015, and the cost of driving tests will be reviewed.

Roads minister Robert Goodwill:

“The costs of owning and running a car are felt by millions of households and businesses across the nation. The Government is determined to help keep those costs down. That is why we are freezing the price for an MOT test and looking again at the costs associated with getting a driving licence.

“We also want to make it easier for people to get a better deal on fuel at motorway service stations, for instance through a trial of motorway signs that will show motorists the different fuel prices on offer on their route.”

By motoringresearch.com