Innocent motorists 'at risk' from insurance curb: AA warns - Telegraph.co.uk

"This could hit people who happen to be away or who are in hospital when their car insurance is up for renewal," an AA spokesman said.

"At the same time this will not deal with the sort of people who are not recorded at all by the DVLA.

"The big question is whether the Government will have enough money in its budget to publicise the change in the law."

Mike Penning, the road safety minister, sought to allay the AA's fears, pledging a substantial campaign to make sure that drivers were aware of the change in the law.

He added that motorists who are late in renewing their insurance would initially get a warning letter before action was taken.

A £100 fine will only be issued if the driver fails to buy insurance cover by a certain date. Only those who deliberately flout the law face having their car seized and possibly crushed.

The new law is aimed at dealing with the estimated one million uninsured cars on Britain's roads which, according to the industry, add an estimated £30 to the premium of each law abiding driver.

According to the Department for Transport 160 people a year are killed and 230,000 are injured by uninsured and untraceable drivers.

"The motoring underclass is not going to get away with this," Mr Penning told the Daily Telegraph.

He was backed by Jim Fitzpatrick, Mr Penning's Labour counterpart who, as road safety minister, introduced the original legislation.

"This is 'win win' for everybody, apart from people who don't insure their vehicles."

The move was also backed by Rob Gifford, executive director of the Parliamentary Advisory Council for Transport Safety.

"I think it is a good idea," he said. "In terms of insurance there are two groups of people. There are those who are outside the law and those who genuinely forget.

"This will at least remind the latter group that they had better insure their vehicle."