Safer Neighbourhood Officers PC Snaith and SC Brown were patrolling the town yesterday afternoon when they spotted a dark green Toyota.
Officers stopped the Toyota on the A171 just short of the bridge that crosses the River Esk and checks revealed that the car was being driven with no insurance.
Officer Snaith said: "Whitby is a place enjoyed by everyone who lives and visits our seaside town. We will continue to ensure that the roads are a safe place for all that use them.
"There is no excuse for not having a valid certificate of insurance. This driver has been reported for no insurance and the vehicle has been seized.
"The owner will not be able to get the vehicle back until they can prove that all the documentation that is required is in place. It's simple insure it or lose it."
North Yorkshire Police urged the public to get in touch if they knew of anyone driving a vehicle with no insurance.