Government wants better tracking technology and tough penalties

Stricter penalties and effective technology to track uninsured drivers could be introduced under proposed government guidelines.

According to Professor David Greenaway, who is heading a government sponsored consultation on the future of motor insurance, Secretary of State for Transport Alastair Darling will back change.

He said: "Discussions with the Department for Transport and the Secretary of State have led me to believe that there is a political will to move forward on this and use the review as a basis for change."

This week the RAC added its voice to the debate with a report that predicted the current cost of uninsured driving, around £30 per policyholder per year, will double by 2005.

Greenaway said he favoured a multiple approach to the problem - a problem that costs insurers £600m to cover uninsured drivers.

He added: "It strikes me as one of those problems that will not be dealt with by one single solution.

"I am not ruling anything out, but I am looking at practical measures surrounding prevention and enforcement."

Greenaway said: "This is a multi-faceted problem made more difficult as the group does not self-declare. I am a good way through talking to various stakeholders including the police, magistrates, victims groups, motor accident solicitors, ABI and insurance providers.

"This problem has real cost implications for both drivers and insurers."

Pressure to curb uninsured driving has been racked up over the last few months with insurers calling for a number of new measures. Proposals include introducing insurance discs, pay-at-the-pump insurance and linking the motor insurance database to DVLA records to facilitate detection.