It is proposed a ban of referral fees in personal injury claims is to be imposed, in an attempt to curb the "compensation culture".
It is claimed that the rise in insurance is partly to blame with the current system in which personal injury details are sold on by insurance companies to lawyers.
The Association of British Insurers said the ban must be "watertight".
Justice minister Jonathan Djanogly said "honest motorists were seeing their premiums hiked as insurers covered the costs of ever more compensation claims".
"Many of the claims are spurious and only happen because the current system allows too many people to profit from minor accidents and incidents"
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