"But this wouldn't happen if it (WoF inspections) happened on mileage," he said.
The proposed options include four alternatives to streamline the warrant of fitness scheme and changes to the vehicle registration programme. Currently, vehicles must be inspected every six months if older than six years. Newer vehicles are inspected annually.
At a cost of about $50 per inspection, Kiwis drivers are forking out nearly $250 million in inspection fees each year.
Proposed changes include tougher testing standards, but less frequent inspections and the introduction of demerit points penalising those who don't comply with WoF safety standards.
A further seven changes to vehicle registration are included in the document, plus new options for the Certificate of Fitness and Transport Licensing systems.
Drivers would save millions of dollars in testing fees and administration costs each year under the proposed options, the ministry says.