The number of deaths caused by uninsured drivers has risen by nearly a third in six years while offenders have been facing softer penalties.

Figures seen by The Times show that average fines for driving without insurance have dropped by 17 per cent since 1997, from £224 to £185. But uninsured drivers are killing four people a week, more than ever before.

The statistics have been disclosed as the Government is about to crack down on reckless driving, including texting, applying make-up and drinking coffee at the wheel. There will also be curbs on Britain's 1.5million uninsured drivers.

Under laws that come into force on Monday, causing death by driving while unlicensed, disqualified or un-insured will merit a maximum of two years in prison. The present rules allow courts to fine uninsured drivers up to £5,000 and do not include custodial sentences.

MPs and road safety experts have condemned the initiative as “too little, too late”. They point to a new study which found that 208 people died in accidents caused by uninsured drivers in 2006, compared with 160 in 2000, the first year for which accurate figures are available.

Mark Hunter, transport spokesman for the Liberal Democrats, said: “It beggars belief that penalties for uninsured drivers have become more lenient on this Government's watch.

“ Uninsured drivers are a dangerous and often fatal blight on our roads and responsible motorists are forking out for higher premiums to pay for their misadventures.

“It is ridiculous that, while you can be fined £1,000 for not buying a TV licence, uninsured drivers can cause thousands of pounds of damage and get away with pathetically small penalties.”

Accidents caused by uninsured drivers cost £500million a year in insurance claims and add about £30 each to the policies of law-abiding motorists, according to Direct Line and the Motor Insurers' Bureau, an organisation funded by insurance companies to compensate victims of negligent and untraced motorists.

Theresa Villiers, the Shadow Transport Secretary, said: “Labour has repeatedly sent out the wrong message to irresponsible drivers who flout the law and dodge paying insurance. Under Labour crime does really pay.”

Only 263,000 uninsured drivers were convicted by magistrates' courts in 2006, compared with 255,000 in 1997, the study found.

The Government also expects about 150 motorists a year to be jailed after being convicted of death by careless driving. From Monday, motorists who cause a fatal accident while using mobile phones or switching on a radio face being jailed for up to five years.

A driver who is distracted by texting a friend, applying make-up or drinking a coffee and is then in a fatal crash will face the same penalty.

Robert Gifford, director of the Parliamentary Advisory Council for Transport Safety, said: “Death on the roads should be dealt with fully and formally. Uninsured drivers are more likely to be involved in a crash than insured drivers.

“The rise in deaths involving un-insured drivers is clearly worrying. On the other hand, magistrates are constrained in the fines that they can impose by the ability of the guilty party to pay.

“What we need is a consistent and clear message that driving without insurance is not a victimless crime but can lead to unnecessary deaths.”

Uninsured drivers are ten times more likely than insured motorists to have a drink-driving conviction, six times more likely to drive an unsafe vehicle and four times more likely to have a conviction for driving without due care and attention.

Maggie Game, who is head of car insurance at Direct Line, said: “With uninsured drivers costing British society around £500million each year, the severity of penalties must act as a deterrent to those considering driving without insurance.”

A spokeswoman for the Department for Transport said: “Uninsured driving is absolutely unacceptable. That is why the Government gave the police increased powers to seize and crush uninsured cars, which they used to seize 450 vehicles a day in 2007, and next week is introducing a new offence of causing death by driving while uninsured.”

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