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The AA is seeking to address losses faced by car insurance customers involved in collisions with uninsured drivers.

Estimates suggest collisions with uninsured drivers cost the industry around £380 million per year.

AA insurance is offering customers a new deal that will enable them to retain their no-claim discount if they are involved in a collision with a driver where they were not at fault.

The company's director, Simon Douglas, added: "It seems unfair that the innocent party should end up paying the penalty of a lost no-claim discount, which could be much greater than the penalty suffered by the uninsured driver."

He noted that around one in 25 drivers on Britain's roads are uninsured, with these drivers responsible for killing an estimated 160 people every year, injuring 23,000.

Many insurers are considering the use of GPS trackers and so-called 'black box' technology in customers' cars, which would enable more accurate decisions to be made about fault when a claim is submitted.

This could have important implications for assessing who is at fault in collisions involving other uninsured drivers, perhaps even prosecutions.