The European Union is looking to create a Europe-wide electronic data-sharing system of driver's details which means motorists who commit offences on roads abroad can be traced, which could affect people's car insurance costs.

According to What Car? the plan is part of the union's plan to halve the number of road deaths recorded in 2001 by 2010.

It is believed that one in 20 driving offences in the EU go unpunished due to the fact they are committed by drivers from other countries, meaning the police cannot trace the numberplate of the vehicle.

The proposals could have an effect on people's car insurance costs as motorists are obliged to inform their insurance company if they receive points on their licence.

According to the magazine, more than three million cars enter the UK each year and are responsible for around 65 accidents, with foreign drivers 30 per cent more likely to be involved in a crash.

Recent research by the Foreign and Commonwealth Office revealed only 37 per cent of people in the UK check the local driving laws of their destination before they leave.

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