Govt keen to cut costs of running a car

23rd October 2013

The government is keen to cut the costs of running a vehicle in the UK today and has announced a raft of measures that are aimed to do so.

Plans include a crackdown on whiplash fraud, a freeze on the MOT prices and a scheme to reduce the price of fuel at motorway service stations.

Justice secretary Chris Grayling announced the plans as the AA revealed that average motor insurance premiums have fallen more than 12 per cent in the past year, which is further good news for UK motorists.

Much of this reduction is due to action taken by the Ministry of Justice on no-win, no-fee deals and more robust action on rogue claim firms.

Despite the success in the fight against whiplash claims, they are an issue the government is keen to continue to battle.

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.

The government's plans will also see the implementation of improved data sharing by insurers, which will help police, including the specialist Insurance Fraud Enforcement Department, to track down criminal fraudsters.

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."

He also revealed that the government will be looking into the costs associated with obtaining a driving licence in the UK.

As part of the scheme to offer cheaper fuel on motorways, the government is planning a trial of signs that would show motorists the different prices on offer on their route, a move that would ensure they were better informed about the potential savings they could access.