Soaring car insurance premiums in the UK will be tamed through new measures to prevent false claims, according to Prime Minister David Cameron.

Faced with 554,000 whiplash claims a year totalling £2 billion ($2.9 billion), the insurance industry has won backing from Mr Cameron for fixed legal fees, minimum speed limits and rigorous medical examinations to bring the spiralling cost of claims under control.

Described by the Prime Minister’s office as the “whiplash capital of Europe”, Britain has seen motor insurance injury claims rise by 70% in the past six years, despite the number of casualities caused by road accidents falling by 23% over the same period.

Four members of a “cash for crash” gang were jailed in September after lodging 120 fake accident claims worth £2 million ($2.9 million).

Mr Cameron has promised to cut fixed fees that lawyers receive for each successful personal injury claim, as well as introduce a tougher burden of medical proof when lodging a claim, and the use of in-car technology.

A minimum speed threshold will also be introduced in the “coming months”.

Insurers in the UK want a 10kmh threshold for whiplash claims, as is used in Germany, where drivers wishing to lodge a whiplash claim must also obtain two medical opinions.

Mr Cameron told the BBC no one measure will prevent fraudulent claims, estimated to increase individual premiums by £90 million ($132 million) a year.

“The Government has got to help sort out the legal issues, some steps have been taken by insurance companies already in terms of referral fees, and there’s quite a lot of space for individual action – personal responsibility, not making false claims,” he said.

“If we work together we can actually deliver.”

While insurance and business groups have applauded the move, the Law Society says Mr Cameron has acted without consulting the legal industry.

“Government should not be limiting itself to tea and cakes with one partisan set of stakeholders,” CEO Desmond Hudson said.