Whiplash plans to 'cut car insurance premiums by £40
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.