like the idea sfboy
but what if young scrote owns a legal, but knackered old banger, which gets wheeled out once a year for an MOT, and costs him £3 per year to insure?
He then gets his transmitter, and fills up his joyriding cars to his hearts content
Forging a plate is becoming more difficult (though still not all that difficult, agreed), but it would at least take a bit more planning.
If found with a forged plate, crush the car

(though yes, finding it could prove difficult

)
Nemstar - good point

OK - divert some of the money saved (say of the extra £30 we all pay per year to 'cover' uninsured drivers) to man a 24/7 centralised 'control centre' who have the ability to override the lockout, having spoken to the driver and confirmed identity etc

Said identity would need to match to the car somehow, or prove that you bought it 5 mins ago

Not sure how that last bit would work yet - maybe some sort of grace period, where you could get the lockout overidden, but each time you do, it is being logged that you are.
If after X days still no insurance etc, no more lockout overides and cops get sent round to have a word?
can you tell I'm refining as we go along? LOL
How about a combination of both?
ANPR + having to swipe a bank card (chip and PIN) in a name of someone who is down as insured to drive?