Under the changes announced by Justice Secretary Chris Grayling, whiplash cheats will be targeted by new independent medical panels from next year in a move to ensure only evidence from accredited professionals can be considered.

Plans for improved data sharing by insurers will also help police, including the specialist Insurance Fraud Enforcement Department, to track down criminal fraudsters.

In addition, the statutory maximum price of the MOT test for a car will be frozen at £54.85 until 2015 – potentially saving up to £50m for drivers every year.

Action will also be taken on high motorway fuel prices, with the Government to trial new comparison road signs that show prices at different service stations along a route, making it easier for drivers to get the cheapest deal and encouraging competition on prices.

And finally, the fees charged for the driving test will be reviewed, including the current £31 for the theory test, £62 for the practical test and £50 fee for the provisional licence, to identify any opportunity to save money for the 1.5m car drivers who take their test every year.

Commenting on the move, 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. That is why we are freezing the price for an MOT test and looking again at the costs associated with getting a driving licence.

‘We also want to make it easier for people to get a better deal on fuel at motorway service stations, for instance through a trial of motorway signs that will show motorists the different fuel prices on offer on their route.’

The announcement has been welcomed by the AA, with president Edmund King saying: ‘Motorists in the UK often think they are treated as a cash cow and these proposals go some way to help keep down the motoring costs of hard-pressed families.

‘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 per litre more expensive than can be obtained from supermarket pumps or where there is greater local competition for topping up drivers’ fuel tanks. Whilst we understand that Motorway Service Areas have higher running costs, we welcome Government moves for greater transparency in fuel prices.’

Neil Greig, director of policy and research at the IAM, added: 'At last the government has recognised that high prices at motorway service areas are putting people off stopping. Comparison pricing is just a start and the IAM will be watching carefully to see of true competition does actually drive down prices.'