Government ministers are drawing up plans to enable authorities to seize cars from uninsured motorists.
From April 2009, new powers will make it possible for cars to be confiscated as soon as their insurance lapses, unless their owners take them off the road.
The Motor Insurers' Database will be cross-referenced with information held by the DVLA, and, if drivers have let their insurance lapse and not taken them off the road, a £100 fine will be issued.
If the fine goes unpaid, the car will be seized.
The move is the latest proposal to tackle the big problem of uninsured drivers.
It is thought that around 5.7% of motorists - about two million people - drive without insurance.