The British Insurance Broker's Association (BIBA) has welcomed the Continuous Insurance Enforcement regulations policy that have been laid in Parliament.
Under the new legislative insurance policy, all car owners will be required to buy car insurance and breakdown cover.
According to the BIBA, if vehicle owners fail to insure, or submit a Statutory Off Road Notice (SORN), they could be liable to a fixed penalty of £100, prosecution with a fine of up to £1,000, and/or wheel clamping which could result in the seizure of their vehicle with the attendant costs.
BIBA Head of Corporate Affairs Graeme Trudgill said the new system will be launched this spring that compares records on the Motor Insurance Database (MID) with those held on the DVLA Vehicle Database to indentify keepers of uninsured vehicles.
BIBA expects that the new Continuous Insurance Enforcement regulations will create a fairer system for responsible motorists who pay an average £30 each year within their premiums to cover the costs of uninsured driving.