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Annual motor insurance premiums could fall by £40-£50 per car if new Government plans announced by the Chancellor today come into force successfully.
George Osborne said he would introduce new measures to cut unnecessary whiplash claims following a consultation at the start of 2016.
In the Autumn Statement he said: "The Government is determined to crack down on the fraud and claims culture in motor insurance. Whiplash claims cost the country £2 billion a year, an average of £90 per motor insurance policy, which is out of all proportion to any genuine injury suffered.
"The Government intends to introduce measures to end the right to cash compensation for minor whiplash injuries, and will consult on the details in the New Year."
He added: "This will end the cycle in which responsible motorists pay higher premiums to cover false claims by others. It will remove over £1bn from the cost of providing motor insurance and the Government expects the insurance industry to pass an average saving of £40 to £50 per motor insurance policy on to consumers."
Measures cited by the Chancellor's statement included removing the right to general damaged for minor soft tissue injuries and removing the legal costs by transferring personal injury claims of up to £5000 to the small claims court.
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