A crackdown on whiplash injury fraud is also part of the driver-friendly package.
Justice Secretary Chris Grayling has revealed:
lThe statutory maximum price of the MoT test for a car will be frozen at £54.85 until 2015;
l Action will be taken on high motorway fuel prices. Comparison road signs will be trialled, which will show prices at different service stations along a route, making it easier for drivers to get the cheapest deal;
lWhiplash cheats, whose bogus compensation claims have forced up average motor insurance premiums, will be targeted by new independent medical panels. Victims with genuine cases will still get the help they deserve.
These initiatives will be introduced from next year.
Mr Grayling said: "We are turning the tide on the compensation culture and helping hard-working people by tackling high insurance premiums and other motoring costs.
"It's not right that people who cheat the insurance system get away with it while forcing up the price for everyone else - so we are now going after whiplash fraudsters and will keep on driving premiums down."
Roads Minister Robert Goodwill said: "The Government is determined to help keep those costs down. That is why we are freezing the price for an MoT test."
New statistics from the AA show that motor insurance premiums are now falling at the fastest rate since 1994 - a fall of 12.3% in the year to October for an average comprehensive insurance policy, from £648 in October 2012 to £568 in 2013.