AA decided to keep its Driving Other Cars (DOC) insurance cover despite the fact that many insurance companies have dropped it from their motor insurance policies.
The insurance provider feels that removing DOC from its policies would have a detrimental effect on Britain's already poor record on uninsured driving.
However, other insurance companies feel that DOC encourages people to 'rip off' the insurance system by taking out cheap policies on low-risk models of cars and then driving more expensive models belonging to family or friends.
A spokesman for Norwich Union said: "The 'drive other cars' clause is being widely abused.
"We want to end the situation where an 18-year-old is driving around in a souped-up four-litre sports car for which they would not be able to ordinarily get insurance, and then crashes into a bus stop.
"It also muddies the water for police seeking to crack down on uninsured drivers."
Norwich Union and other insurers are revoking their DOC policies in light of a report published by the Department of Transport last year which found that the policy contributed to the number of people driving uninsured cars.
AA argues that the industry should be clearer on the rules which govern car insurance
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