Drivers who claim to have whiplash will soon only have to pay £180 to undergo a medical assessment, as the fee is being lowered to reduce the number of false claims.
At the moment, a medical assessment can cost up to £700 for an initial report. It is hoped this reduction in cost will stop the experts who put together the reports persuading drivers to get unnecessary medical treatment, as they will have little incentive to do so, reports bbc.co.uk.
Justice secretary Chris Grayling said the system has been abused for some time now, and that honest drivers have been paying for it.
"We're saying that doctors should be paid a fixed price for that work," he explained. "And we're saying that across the claims process we should have a structure that makes sure that people are paid for what they really do, that claims that go through are genuine and that we drive out some of the practices that are inflating insurance premiums unnecessarily."
Some half a million people make whiplash claims every year, but not all of them are genuine. Car insurance premiums are pushed up by around £90 a year to compensate for these false claims, reports rac.co.uk.
The new reduced medical assessment fee for whiplash claims will come into effect in England and Wales this October.