New independent medical panels are being set up to crackdown on bogus personal injury claims and whiplash fraud.
The move is part of a scheme aimed at reducing the cost for motorists which will also see a freeze on MOT test prices and a reduction fuel prices at motorway service stations.
Average motor insurance premiums have already fallen by more than 12% over the past year, equivalent to an £80 reduction on an average policy.
In April the Government changed the rules for the way personal injury claims are funded and introduced a ban on referral fees paid between lawyers, insurers and claims firms.
But Justice Secretary Chris Grayling wants to do more.
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.”
Mr Grayling added how whiplash cheats will be targeted by new independent medical panels which will ensure only evidence from accredited professionals can be considered.
This will include developing a scheme for accrediting medical experts who can assess whiplash injuries, enhancing the medical reporting process, improving information for medical assessments and carrying out spot checks to ensure quality.
Mr Grayling also announced there will not an increase in the small claims track threshold from £1 000 to £5 000.
The rise was a key element of the Government’s original consultation but decided against a rise after a House of Commons transport select committee heard evidence from personal injury lawyers.
Mr Grayling has not ruled out raising the limit in the future.