Insurers are calling on the government to crack down on uninsured drivers, who cost £500 million a year.

The British Insurance Brokers’ Association (BIBA) has asked the government to launch a publicity campaign raising awareness of the danger of uninsured driving and to fund a new enforcement agency to tackle the problem.

According to the Motor Insurers’ Bureau, which pays victims of uninsured drivers compensation in the event of an accident, uninsured drivers cost over £500 million a year.

The claims add an extra £30 onto every vehicle insurance premium, the bureau estimates.

And the UK has one of the worst records in western Europe for uninsured drivers, with one in 20 vehicles on the road uninsured.

Chief executive of BIBA Eric Galbraith said: “The government has been dragging its feet on drafting new regulations which are desperately needed to help tackle uninsured driving in the UK.

“I am calling on Ruth Kelly and her team to do their utmost to set these regulations in motion at the earliest opportunity.”

The government has recently given the police new powers to access the motor insurance database and to seize – and crush – uninsured vehicles.

These changes have helped to reduce uninsured driving by nearly ten per cent since 2006 and have prevented an estimated £30 million in uninsured driving claims during that period.

However, BIBA said more must be done to stamp out the two million cases of uninsured driving which continue to take place across the UK.