British roads are teeming with them. Every one in twenty cars that pass you on the road is uninsured, this despite the 1988 Road Traffic Act that made it illegal to drive an uninsured vehicle on Britain's roads. Luckily, the Motor Insurance Bureau is there to provide a cushion for the damage that such drivers might do.

Established in 1946, the Motor Insurers Bureau (MIB) has paid out £2 billion in compensation since its inception. The Road Traffic Act of 1988 made it compulsory for firms providing car insurance to contribute to the fund, but in actual fact, it is the law-abiding drivers who are paying for the scheme. £15 to £30 is deducted from every premium paid and handed over to MIB to keep it up and running.

MIB pays out compensation to people who are injured by uninsured drivers. For personal injuries, the amount that can be awarded is unlimited. MIB also pays out for damage caused by the uninsured driver to property. For property the maximum paid is £250,000 with an excess of £300 to be paid by the claimant.

MIB also covers hit and run drivers. They have a scheme called the Untraced Drivers' Agreement in which they provide compensation to victims of a hit and run if the driver disappeared completely, but also if the driver remained on the scene but provided police with incorrect information so as not to be found.

The compensation at MIB is supposed to be used as a last resort. What this means is that if the injured party has somewhere else that they can claim for compensation for the damage caused by the uninsured driver, they must do so first. For example, drivers with comprehensive vehicle insurance will have clauses in their policies that allow them to be covered by their own insurance if an uninsured driver hits them.

If your car is stolen, and the driver is found, MIB will not cover the damage that the driver caused. Instead insurance for your vehicle will pay out for such damage. On the other hand though, if your car is stolen and the driver is not found, victims of that driver can claim compensation from MIB under the Untraced Drivers Agreement.

Owners and passengers in an uninsured car that has an accident, in most cases, cannot claim from MIB. The driver is exempt from claiming because he or she was fully aware that it is illegal to drive a car without car insurance in Britain. The passengers, if they knew or should have known the car was not insured, also cannot claim.

In the first year of operation, 1946-1947, MIB paid out compensation of £11,500. In 2003, that number was at £228 million. Administrative cost for MIB were £8 million in 2003. The scheme covers accident within the British Isles and Gibraltar.