Drivers will have to display a windscreen insurance disc if a plan by Bluesure to combat fraud is taken up.

The insurer also supports the introduction of a fine equivalent to two years' insurance premium, rather than the current average fine of £160.

Bluesure has proposed these moves as fraud is now reaching "unacceptable levels", costing £300m per year - the equivalent of £30 per motorist.

It is estimated that 1.5 million UK motorists - more than one in 20 - drive without insurance. However, only around 300,000 are caught and convicted each year.

The UK has one of the highest rates of uninsured drivers in Europe. In Finland just one in 200 vehicles is uninsured and in Germany the figure is one in 500.

Bluesure claimed that displaying insurance certificates had helped achieve a significant reduction in uninsured motorists across Europe.

The company's campaign has political backing from MEP Theresa Villiers, deputy leader of the Conservatives in the European Parliament.

Bluesure has also asked MPs and major insurance companies for their support.

Bluesure chief executive Tony Martin commented: "Anyone injured in a car accident with an uninsured motorist does not have the same protection an insured motorist would provide.

"Having immediate visual proof that a motorist is or isn't insured would help those people involved in motor accidents, as they will be able to see immediately if there could be a problem with an uninsured driver."