Judge Kevin Kilraine said that 19 year-old Paul Lynch, of 14 Aranmore Avenue in Creggan, would have gone to prison but for his plea of guilty.
He was charged with dangerous driving, failing to stop for a garda and driving without insurance on July 12th last year.
Carndonagh Court, sitting in Buncrana while the Carn courtroom is being refurbished, heard how Lynch was observed driving dangerously by Gardai on mobile patrol in the Fahan area.
Inspector David Kelly said officers at Bradley's filling station at Tievebane saw Lynch overtake four other vehicles on the road from Fahan to Burnfoot. It was a dry, bright day. vehicles. It was a dry bright day."
He said the Gardai put their car sirens on, indicating for Lynch to slow down. It looked like he was stopping but as the Gardai began to get out of the patrol car, Lynch sped off along the hard shoulder.
The Gardai then went in pursuit of 19 year-old Lynch and, while following him, signalled for another Garda on a motorbike to follow the car as well.
Inspector Kelly said as Lynch approached Bridgend he overtook a number of vehicles and was driving at a speed estimated to be between 70 and 80mph.
He said there was a line of traffic as Gardai approached the border.
"The Gardai then slowed down and did not pursue the vehicle anymore. They decelerated and the car got ahead."
The Inspector told the court the Gardai on the motorcycle was attempting to overtake Lynch's vehicle to warn other drivers.
Lynch made his way across the border but later returned and spoke to Gardai about the incident, explaining he failed to stop because he had no insurance.
The court heard he had no previous convictions.
Defence solicitor Frank Dorrian told the court Lynch came back into Inishown and surrended himself to the Garda. He was breathalysed and the test showed a zero reading.
Mr Dorrian said:"He tells me that he was driving this vehicle without insurance. He initially intended to stop and take up matters with the Guards. Unfortunately he didn't.
"The matter of his driving doesn't attract any explanation other than to acknowledge that it was appalling and unacceptable at any level - he accepts that.
"What I would say is that despite the antics of Paul Lynch his speed is not on the high scale of offender fines. The top speed indicated at 80mph, it is not ideal but it is not a lunatic speed."
Mr Dorrian said Lynch left school at 18 and had been working as a scaffolder in the North.
He said he had high hopes of returning to education in the future to study at third level in Letterkenny.
Mr Dorrian added: "I would ask you to accept that all of this is born out of a misjudgement of not saying he had no insurance.
"He is one of seven children. His parents say none of them have ever been in trouble. This incident is the only incident of this type in the family spectrum."
Judge Kilrane told Lynch this was "one of the worst cases of dangerous driving I have had the misfortune of hearing".
He said: "The defendant was well advised to plead guilty otherwise he would have been sent to prison.
"What disturbs me, and this is the difficulty, is that driving without insurance is a serious enough offence but it is not a hanging offence.
"Instead of stopping, you could be forgiven for thinking that you were playing a game with the Gardai.
"The game was stop and wait for the Gardai to get out of the vehicle and then make off with high speed to get an advantage.
"The driving was absolutely appalling.
"This is how people are killed and it is just the mercy of God the defendant himself wasn't killed and didn't kill others. He deserves prison but on this occasion he won't go to prison."
For driving without no insurance Lynch was convicted and fined 300 euros and disqualified for one year. For the charge of dangerous driving at Carnashannagh, Burnfoot ,he was convicted and fined 500 euro and disqualified for four years.
The second charge of dangerous driving, at Tieverbane was taken into consideration. For failing to stop for a Garda Lynch was convicted and fined 500 euro and disqualified for four years.
The disqualification is to run concurrently.