8 U.S. states with the highest uninsured motorists

Several factors may contribute to the increase in uninsured drivers, the data showed, including housing costs, poverty rates and the cost of car insurance. Meanwhile, penalties vary by state and driving without insurance can result in fines, license and vehicle registration suspension, and disqualification from receiving payment from an at-fault driver's insurer after an accident.

"There is also a correlation between the escalating high cost-of-living expenses, stagnant wages and other issues straining the average household budget, indicating that despite the dangers of driving uninsured, car insurance seems to be an expense some people are willing to cut when trying to balance their budget," U.S. News & World Report's Rachael Brennan told PropertyCasualty360.com.

Penalties in the eight states where more than 20% of drivers are uninsured:

• Washington, D.C.: Failing to maintain valid insurance results in the suspension of your registration or reciprocity sticker. The first offense carries a $500 civil fine, a license suspension up to 30 days or both. Second and subsequent offenses increase the fine by 50% and may include a license suspension of up to 60 days. You may also have to pay other fees.
• New Mexico: The Motor Vehicle Department monitors registered vehicles to make sure they are compliant with the Mandatory Financial Responsibility Act. If your insurance status is "unknown," you will be notified and given 30 days to provide proof of current auto insurance. Failure to comply results in registration suspension and a $30 reinstatement fee. You could also face fines and jail time.
• Mississippi: Driving without car insurance is illegal and punishable by a fine. Fines are $300 for a first offense, $400 for a second, and $500 for a third or subsequent offense.
• Tennessee: Failure to provide evidence of financial responsibility results in a Class C misdemeanor, punishable by a fine up to $300 and potential vehicle towing. A conviction will also trigger a driver's license suspension.
• Michigan: Driving an uninsured vehicle, or allowing someone else to, can result in up to a $500 fine, a year in jail or both. If you cause an accident with an uninsured vehicle you own, you could be sued and liable for damages. If you own an uninsured vehicle and are injured in an accident, you forfeit benefits, such as coverage for medical expenses and wage loss.
• Florida: Failure to maintain at least the required state minimum insurance coverage in Florida may result in the suspension of your driver's license and registration. You may also have to pay a reinstatement fee of up to $500.
• California: Driving without insurance in California can result in fines and other penalties. If you're involved in an accident without proper insurance, your driving privilege may be suspended for up to four years, regardless of fault. You may reinstate your license during the last three years by providing and maintaining a California Insurance Proof Certificate (SR-22) for that period.
• Missouri: If you're convicted of driving uninsured or failing to show proof of insurance, you could earn four points on your driver's license, be required to have your driving monitored by the Department of Revenue, or have your license suspended for up to a year, depending on how many times you have had your license suspended in the past. You may also be fined.

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