Government bid to cut driving options

PLANS DESIGNED to reduce petrol prices at motorway service stations and a freeze on the cost of the MoT test have been announced by the Government.

A crackdown on whiplash injury fraud is also part of the driver-friendly package to be introduced from next year.

Justice Secretary Chris Grayling said t he statutory maximum price of the MoT test for a car will be frozen at £54.85 until 2015 - potentially saving up to £50 million for drivers every year.

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

Mr Grayling said 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.

"We are turning the tide on the compensation culture and helping hard-working people by tackling high insurance premiums and other motoring costs," he said.

"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."

Roads Minister Robert Goodwill said: "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 ."

New statistics from the AA show that motor insurance premiums are now falling at the fastest rate since 1994 - a fall of 12.3% in the year to October for an average comprehensive insurance policy, from £648 in October 2012 to £568 in October 2013.

New figures from the Ministry of Justice's claims management regulation unit also show that the number of claims firms in the market has plummeted by more than 1,000 following law changes, from a peak of 2,553 in December 2011 to 1,485 last month.

The MoJ said that despite these successes whiplash claims remained an issue which Government would continue to fight.

The number of claims has fallen since 2011 but there were still almost half a million whiplash claims in 2012. Insurers say these claims cost them more than £2 billion in payouts and lead to an average premium increase of £90 for drivers. Each whiplash compensation payout costs an average of £2,400, insurers say, with an additional £2,000 in legal costs.

James Dalton, the Association of British Insurers head of motor and liability, said: "We have long called for more robust medical assessment of whiplash claimants. Setting up independent panels of accredited experts will help the UK shake off its reputation as the whiplash capital of Europe."

Institute of Advanced Motorists' policy and research director Neil Greig said: "At last the Government has recognised that high prices at motorway service areas are putting people off stopping.

"Comparison pricing is just a start and we will be watching carefully to see if true competition does actually drive down prices."

RAC technical director David Bizley said: "Running a car is, for many, the highest cost in the household budget alongside housing and, particularly in this economic climate, a crackdown on those who are wilfully cheating the system through fraudulent claims will be welcomed by the vast majority of motorists. "

He added: " The RAC has been calling for an end to inflated prices at motorway service stations and the new measures should help to address this problem by stimulating greater competition.

"While we are pleased to see this as part of the new proposals, we urge the Government to go much further in helping cash-strapped motorists by reducing fuel duty on all forecourts."

Edmund King, AA president said: "The AA has long campaigned for motorway fuel prices to be displayed at the start of motorways, as they do in France, so that the driver can make an informed choice on where to fill up. Prices can be 10p per litre more expensive than can be obtained from supermarket pumps or where there is greater local competition for topping up drivers' fuel tanks. Whilst we understand that Motorway Service Areas have higher running costs, we welcome Government moves for greater transparency in fuel prices."

By Press Association reporters