The Association of British Insurers (ABI) estimates that the total cost of uninsured motoring in the UK exceeds half a billion pounds each year.

The Motor Insurance Bureau (MIB) which was established in 1946 to compensate the victims of negligent uninsured and untraced motorists, paid out £500m last year.

A total of 36,000 uninsured claims were reported to the Motor Insurers’ Bureau during 2006. This represents a 4.7% reduction in the number of uninsured and untraced driver claims on the previous year.

Their figures reveal that West Gorton in Manchester is the area with the worst record of uninsured drivers in the UK, where you are 6 times more likely to be hit by an uninsured driver.

During 2006 15% of uninsured drivers were aged 17 to 21 and 33% were aged 21 to 29.

48% of uninsured driving during 2006 was by drivers under the age of 30.

25% of uninsured driving was in the age range 30 to 39 and 14% was in the age range 40 to 49.

Ashton West, the Group CEO for the Motor Insurers’ Bureau says,

“Time and time again we see the consequences of uninsured driving. Innocent lives are ruined by the selfishness of drivers who think they are above the law. All the indications are that the rate of uninsured driving is beginning to fall, which is encouraging. But more can and must be done in the fight against uninsured driving.

It is estimated that uninsured drivers added £30 a year on average to the premiums of honest motorists.

"Uninsured drivers are a menace. They cost the industry hundreds of millions of pounds and ultimately this is passed on to consumers in the form of higher premiums," said ABI spokesman Malcolm Tarling.