Millions of motorists could see their car insurance premiums reduced as a result of plans to cut compensation for whiplash injuries.
Whiplash claims have risen by 50% over the past decade, costing insurance companies about £1bn a year.
The government said insurers have pledged to pass on the savings, worth about £40 a year.
Following a promise made last year, ministers are looking at scrapping the right to compensation or capping it.
In its consultation, the Ministry of Justice suggests that such payments - which are separate from medical bills or loss of earnings - could be banned.
Another option is capping them at a maximum of £425. By contrast the current average payout is £1,850.

'Better deals'
The government pointed out that while the number of road accidents in the UK has been falling, the number of whiplash claims has been increasing.
"For too long some have exploited a rampant compensation culture and seen whiplash claims an easy payday, driving up costs for millions of law-abiding motorists," said Justice Secretary Liz Truss.
"These reforms will crack down on minor, exaggerated and fraudulent claims."

Other proposed measures include:

§  Introducing a tariff system for compensation, payable for more significant injuries than whiplash

§  Allowing small claims courts to handle all personal injury claims up to £5,000, rather than just £1,000, so reducing legal costs

§  Requiring medical reports from an accredited expert before any claims can be paid

The Association of British Insurers (ABI) welcomed the consultation.
"These reforms are important. They will help to give honest motorists a better deal," said an ABI spokesperson.
Nuisance calls
The insurance industry has been complaining about the issue of whiplash claims for at least eight years.
Andrew Morris, operations director at Aviva, one of the UK's largest insurance companies, said that while driving on British roads had become safer, with accidents reduced by almost 40% since 2000, the number of injury claims had risen by 90% over the same period.
"All of that suggests that actually there is something fundamentally wrong with our compensation system," he told BBC Radio 4's Today programme. "That means cash is too easily available and that in the UK, almost 80% of every injury claim that we see relates to whiplash. Now in France, by comparison, is it just 3%."
In 2015 alone, motor fraud accounted for 60% of all claims fraud detected by Aviva, Mr Morris said.

Case study: Cormac Jordan
The 45-year-old art director from Bristol was involved in a serious accident in which a lorry crashed into a queue of cars. His was in the seventh car in a row of eight.
"I had been in accidents before but not claimed because I don't agree with litigious culture, but I did in this case," he said. "It was so obvious - several tonnes of lorry had ploughed into a line of cars."
Mr Jordan made a whiplash claim against the company that owned the lorry and provided supporting medical evidence. He was awarded about £2,000 to cover expenses such as having the car towed, as well as repairs.