Drivers could find it easier to switch insurers and take out motor insurance in other European Union countries, under new proposals from the European Commission.

The Commission wants legislation changed so that it is much easier for motorists to take out short-term cover in other member states, as well as help motorists who want to buy cheap cars in neighbouring countries.

If the new rules are approved, it would remove the need for car buyers to take out special insurance while the car is transported to the buyer's home country.

The new "Motor Insurance Directive", which was announced by the Commission on Monday, also aims to improve protection for pedestrians and cyclists who are involved in traffic accidents.

The measure would also make it easier for motorists to obtain a copy of their claims record, so that they can negotiate a contract with another insurance provider.

Frits Bolkestein, internal market commissioner, said: "The aim of this proposal is to make life easier for motorists travelling within the EU by addressing a number of problems which they frequently encounter today."

A spokesman for the Association of British Insurers, the insurance trade body, said that it didn't believe the proposals would mean more expensive insurance

Malcolm Tarling, a spokesman told BBC News Online: "We don't believe there will be significant increases to the cost of insurance."