Biba has secured cross-party support in its battle to make the government rethink its proposals to fine uninsured drivers a "derisory" £100.
The Road Safety Bill introduces an offence of being the keeper of a vehicle which is not insured, unless a statutory declaration is in place to say it will not be used on the roads.
But the fine for this is only £100 - much less than the average cost of a motor policy.Chris Grayling, shadow secretary of state, said: "A £100 fine is not sufficient to address the problem and Biba describes the measure as totally insufficient."
Kevin Hopkins, Labour MP for Luton, said: "The removal of a vehicle and its return only when a heavy fine and the cost of insurance are paid is one way to address that."
Biba's technical services manager Graeme Trudgill said: "The £100 fine is derisory - you get fined £70 just for driving in a bus lane. We hope to be involved in the committee stage to make sure the legislation has some teeth."
He added Biba also wants the government to establish a "visible and effective enforcement agency".
It is estimated there are two million uninsured drivers.
The Bill moves to committee stage next week.