Transport Secretary Alistair Darling yesterday warned motorists in the Midlands that they could have their cars crushed if they are caught driving without insurance.
Mr Darling was speaking in Birmingham as West Midlands Police unveiled new automatic number plate recognition cameras which are linked to a database of uninsured drivers.
Once an uninsured vehicle has been stopped by officers, it is seized and only handed back to the driver if proof of insurance is brought to the police station.
If no insurance details are provided, the driver will be prosecuted for driving without insurance.
If the car is not collected within 14 days, police have the power to dispose of the vehicle by either selling it or destroying it.
Mr Darling said more than 3,000 uninsured cars had been seized during a two-month trial in the West Midlands. An estimated two million cars in the UK do not have insurance.
Mr Darling said: "It is estimated that every lawabiding motorist pays an extra £30 a year because of uninsured drivers." West Midlands Police Inspector Gary Bullock, based at the traffic unit in Park Lane, Aston, said ANPR had been used by the force for three years to trace stolen cars and vehicles used in other offences.
However, the launch yesterday saw the cameras being linked up with the database of uninsured drivers for the first time.
He said: "Birmingham is known as one of the top ten worst offending places for uninsured car use in the country."
The pilot scheme is also being rolled out in Manchester, Yorkshire and Scotland. Keeping a vehicle without insurance also became illegal yesterday - meaning uninsured drivers can be caught before they take to the road.