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Insurers have welcomed a proposed change in the law to fine car owners who do not have insurance.

Although it is illegal to drive without insurance, the change in the law will enable to Driver Vehicle Licensing Agency (DVLA) to send a fine to anyone who has registered their car but has not purchased insurance, unless they have a reasonable excuse.

It is estimated uninsured drivers cost law-abiding motorists £30 a year in higher car insurance premiums.

Talking on BBC Radio 4's Today programme, transport minister Jim Fitzpatrick said the DVLA would work with the Motor Insurance Bureau to track down drivers without insurance and send them a letter demanding an explanation.

Mr Fitzpatrick told the BBC Radio 4 programme: "This is about people who are driving, who are endangering other road users, who are killing and seriously injuring people on our roads.

"We are intending to try to make sure we can stop them from doing that."

The Association of British Insurers (ABI) welcomed the proposal. Malcolm Tarling, spokesperson for the industry body, said: "We are supportive of initiatives to crack down on uninsured driving, not least because it costs £500 million a year which is paid by honest drivers.

"Uninsured drivers kill 160 people a year so this is a safety issue too."

If a driver cannot explain why they have no insurance, they will be issued a fixed-penalty fine of £100, rising to £1,000 and possible court action to seize their vehicle.

Car owners who have declared their vehicle as off the road will not be liable to pay the fine.

Mr Fitzpatrick also said reasonable excuses, such as the renewal fell on a date while the owners were away on holiday, would be accepted.