Government plans to cut the cost of motoring explained

Freeborn Group

The government has today announced measures it says will drive down the cost of running a car. But will motorists notice a difference, or will it just be a drop in the ocean?

Here, MSN Cars runs through the key changes announced today, and explains how they will affect you.

Insurers paid out over £2 billion in compensation for almost half a million whiplash claims in 2012, and the average insurance premium increased by around £90 as a result. The average whiplash payout? Around £2,400, plus an additional £2,000 in legal costs.

Although many claims are genuine, there are documented incidents of scammers claiming £1,000s when they weren't even in an accident. For example, one person claimed to have suffered whiplash in an accident at the same time as giving birth in a hospital miles away.

Only genuine victims will be able to claim compensation

To combat bogus claims, from next year independent medical panels will only consider evidence from accredited professionals – meaning only genuine victims will be able to claim compensation. This should further drive down insurance premiums, which are already on the decrease since last year.

The justice secretary Chris Grayling 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."
 

TyreSafe

Motorway driving is one of the most fuel-efficient uses of your car, but all your hard work eking out an extra few miles per gallon can be in vain thanks to high fuel prices at motorway service stations.

Today’s plan to introduce new signs on motorways that compare fuel costs at different service stations could be the answer. Not only will it encourage drivers to continue to a station with cheaper fuel, but it should also drive competition as stations reduce prices to attract custom.

New signs on motorways will compare fuel costs

The AA president Edmund King commented: "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 a litre more expensive than can be obtained from supermarket pumps or where there is greater local competition for topping up drivers’ fuel tanks. While we understand that motorway service areas have higher running costs, we welcome government moves for greater transparency in fuel prices."
 

Vauxhall

With a third of drivers having admitted to driving without an MOT, the government needs to encourage all motorists to enter their cars for vital yearly checks. They're doing this by freezing the maximum price of MOTs at £54.85.

The maximum price of MOTs will freeze

Many garages offer deals below this price cap, so drivers should shop around at MOT time to get the best deal they can. If you're worried that your car might not pass its MOT, why not take a look at some of the best MOT performers.

According to King, "While most drivers support an annual MOT, many families find the price of an MOT a struggle to meet. The cap will help to ensure that the canny motorist can still shop around for a cheaper MOT test."
 

AA

Many young people are finding driving an all too expensive proposition – and this won't be helped by proposals that new drivers should cover a minimum of 100 hours' supervised driving before taking their test.

Currently, the 1.5 million drivers who take their test every year have to pay £50 for the provisional licence, £31 for the theory test and £62 for the practical test – resulting in a pricey £143 bill before the costs of lessons, insurance and fuel are taken into account. To deal with that, the government has said it will review these costs.

"Recently we have seen a drop in the numbers of teenagers taking their test and the cost is certainly one element," said King.

So those are the government’s plans to save motorists money. The question is, do you think it will make any difference?

By Andrew Brady, contributor, MSN Cars