Quick treatment
"This new sensor will be a life-saver for hundreds of car crash victims who find themselves trapped in their cars and unable to reach their mobile phones because of their injuries," said British Labour MEP Gary Titley, who tabled the resolution in parliament.
"It seems like an extra expense at the moment, but this technology will improve safety so much that in five years, no-one will want to buy a car without it."
Mr Titley's resolution says that the system, known as eCall, would reduce the gravity of car crash injuries by 15% by getting emergency services to the scene more quickly.
It would operate throughout the European Union.
The resolution calls on more EU governments to demonstrate their support for the system, and to take steps to install the E112 technology that enables emergency services to pinpoint the location an emergency call is made from.
So far only seven of the 25 states have signed the eCall Memorandum of Understanding, though another four have taken steps to do so.
Costs and benefits
The UK's Department of Transport has commissioned an impact study before signing up.
"We are taking our time about committing ourselves to it," Mr Titley said.
"There is no logical reason why the UK could not have signed up already."
He said the European Commission had estimated the cost of installing the technology at about £100 (140 euros) per car, while the industry estimates it would be three times as much.
Either way, Mr Titley said, the benefits would outweigh the costs.
"It's estimated that savings through reducing the cost of accidents and congestion are 26bn euros (£18bn) and the total cost is about 4.5bn euros (£3.1bn)," he told BBC News.
The EU's European Road Safety Action Programme aims to reduce the number of road deaths by half between 2003 and 2010.