Reforms to stem the flow of claims for whiplash injuries “cannot come soon enough”, the Association of British Insurers (ABI) says.

Justice Secretary Elizabeth Truss said last week car insurance premiums will be cut by about £40 ($65) a year under new rules, with fixed tariffs capping whiplash compensation payouts and a ban on claims without medical evidence.

The changes, included in the Prisons and Courts Bill, will help crack down on “the compensation culture epidemic”, the UK Government says.

ABI Director of General Insurance Policy James Dalton says personal injury lawyers have profited from a system riddled with exaggerated and fraudulent claims, despite UK roads becoming safer.

“People want an insurance claims system that provides compensation and support to those who genuinely need it,” he said.

“What they don’t want is to be plagued by spam calls and texts from ambulance-chasers, while personal injury lawyers continue to profit from a broken system in urgent need of reform.”

Premiums for comprehensive car insurance hit a record £462 ($749) on average in the fourth quarter of last year, partly driven by the rising cost of whiplash claims, the ABI says.

In November a Ministry of Justice consultation paper flagged plans to either eliminate whiplash claims or cap them.