According to a few surveys, there are close to two million motorists in the UK that drive without insurance. This has a major impact on the insurance industry which incurs a cost of approximately £380 million every year. UK has the worst record when it comes to uninsured drivers.

It has been found that more number of males drive without insurance than females. According to the Motor Insurers Bureau, every year more than 160 people are killed and over 23000 people are injured in accidents caused by uninsured drivers. It has also been found that uninsured drivers are more likely to take part in criminal activity, disregard traffic laws and get involved in road accidents more frequently than others.

The big question that needs to be addressed is why do people drive uninsured? Well, believe it or not, there are many uninsured drivers out there on the roads who claim ignorance and say that they are not aware that they need insurance at all times. What these drivers do not realize is that they could face a penalty of up to £5000 and under the Road Safety Act of 2006; they may lose up to six points. The worst part is even celebrities do not seem to be aware of the need for insurance.

Another important reason as to why there are so many uninsured drivers is because most of them cannot afford the cost of insurance cover. The AA has reported that the average cost of vehicle insurance has risen over 40% in the last alone. The reason attributed for the increase in insurance costs is that insurance companies are forced to cover the costs of uninsured drivers.

The need of the hour clearly is to educate people about the need for having insurance. In fact, in the UK, a vast majority of uninsured drivers are young people. Close to 20% of those in the age groups of 17 to 20 do not opt for insurance due to high premium rates. In the UK it is the Motor Insurer's Bureau that compensates those who are injured due to accidents caused by uninsured drivers.

The Bureau has come up with an online video that highlights the consequences of driving without insurance. The penalty for uninsured driving not only includes a fine of £5000 but also may lead to the seizure of your vehicle. To recover the vehicle you will have to show proof of insurance and pay an amount of £150 towards recovery fees.

In a combined effort between the Motor insurance companies and the Driver and Vehicle Licensing Agency (DVLA), the agency as well as the insurance companies in the UK will check their databases and identify those uninsured drivers and send a letter warning them of the possible consequences of driving without insurance. Despite this warning, if the uninsured drivers do not get insurance coverage then their vehicles will be confiscated and destroyed.

According to the concerned authorities, the need for such drastic action is because there are more uninsured drivers in the United Kingdom than in any other European nation. Accordingly, even the £30 that was being added to the drivers' insurance premiums each year to meet the annual costs of accidents caused by uninsured drivers has been eliminated.

According to many industry analysts the need of the hour is better education for drivers so that they realize the importance of having an insurance coverage. It is important to tell people it does not matter how good or how safe you drive, if you are involved in an accident and you do not have insurance coverage, you may end having to pay thousands of pounds in liability, apart from penalties, confiscation of your vehicle, etc.

The fact of the matter is if the number of uninsured drivers driving on the roads is reduced it may lead to lower premiums. This is because the insurance companies no longer will have to spend up to £500 million each year by way of compensation to those involved in accidents caused by uninsured drivers. This will make it affordable for people to foot their car insurance premiums.

Finally, the onus is on the insurance companies as well as the law agencies to educate the uninsured drivers so that they understand the need for vehicle insurance.