Drivers without insurance face having their cars confiscated and even destroyed, under government plans outlined today.
Fixed penalty fines for drivers who ignore reminders that their insurance has expired are also likely to be introduced. Furthermore, official vehicle registers and motor insurance databases could be linked to allow police to find out quickly if a vehicle is uninsured.
The plans, which will target the estimated 1 million motorists who drive without insurance, were announced at the launch of an independent report into uninsured driving by David Greenaway, a professor of economics at Nottingham University.
It is estimated that 5% of British motorists break the law by driving without insurance, and accidents involving these drivers cost more than £500m a year. Insurers pass the cost of these accidents on to insured drivers in the form of an additional 6%, or £30, on top of the average motor insurance policy.
Research from the Association of British Insurers (ABI) shows that those who drive uninsured are 10 times more likely to have been convicted of drink-driving, six times more likely to have been convicted of driving a non-roadworthy vehicle and three times more likely to have been convicted of driving without due care and attention.
Insured drivers involved in accidents where the other vehicle is not covered by insurance are usually forced to claim on their own policies, which means they lose no-claims discounts and are liable for any policy excess, often amounting to a cost of several hundred pounds.
Prof Greenaway's report made a range of recommendations for reducing what the government sees as "the current unacceptable levels of uninsured driving in the UK".
The Department for Transport (DfT) plans to give the police power to seize and, in certain cases, destroy vehicles that are being driven without insurance.
The DfT also wants to see concerted action by insurance companies to continue to improve the motor insurance database to make it easier to track uninsured drivers. In addition the department is asking for clearer notification procedures so that no one is in any doubt when their insurance expires, and automatic reminders sent out to those motorists who forget to insure their vehicle on time.
However, Prof Greenaway rejected suggestions that an obligation to display proof of insurance in the car windscreen, in the same way as tax discs, would be a solution to the problem. The report said: "We have had tax discs for a very long time and on the DVLA's own estimates almost 6% of registered vehicles on our roads do not have valid tax. It is difficult to imagine therefore that insurance discs will have a significant and long-term impact on the incidence of uninsured driving."
The road safety minister David Jamieson said: "I very much welcome Prof Greenaway's report. We know that law-abiding motorists are fed up with paying the price for the small, hard core of anti-social motorists who drive uninsured, often in untaxed or unsafe vehicles.
"The government is determined to tackle head on the menace of uninsured driving. That is why I have announced today that we plan to give the police the power to seize and destroy vehicles that are being driven illegally and to increase police powers to use new technology to make detection and enforcement more effective."
Home Office minister Caroline Flint said: "Uninsured driving victimises the law-abiding motorist. This report gives a sensible way forward to tackling the problem and across government we will work hard to take forward its recommendations. We want to ensure that the police and courts have the powers they need to tackle offenders and that they can use them effectively.
"We are also working closely with the police to ensure that the hugely successful automatic number plate recognition system is used as effectively as possible to target those who flout the law and drive without insurance," she said.
Barry Smith, chairman of the motor committee at the ABI, and chief executive of Fortis Insurance, said: "The insurance industry is committed to working with Government to implement the recommendations, to improve detection and raise awareness of the need for motor insurance."
Andrew Howard, head of road safety for the AA Motoring Trust, said: "We are pleased that Prof Greenaway has recognised that more use must be made of the technology available, such as automatic number plate recognition cameras linked to the motor insurance database, to track down uninsured drivers.
"We've had a piecemeal approach to prosecuting motoring offences for many years. Up to now, if someone is caught driving without road tax, their insurance details are not automatically checked. This report has addressed this loophole, but it also needs to happen when people are caught for other offences, such as speeding.
Mr Howard added: "We are also pleased that he has rejected calls for windscreen insurance discs and changing insurance cover from the driver to the vehicle. Insurance discs would have been unworkable, and vehicle-based cover would have taken no account of the risk posed by individual drivers."
David Pitt, head of motor insurance at insurance company More Than, said insurers need to look at more innovative ways to tackle the issue. He said the company had taken the step of sending email and SMS (text message) reminders to drivers when their insurance is up for renewal.
