As the economy declines, more motorists are trying to save money by abandoning their car insurance.

According to the Insurance Research Council, the uninsured rate and the unemployment rate are directly correlated.  When unemployment increases 1%, uninsured drivers increase a half-percent.  As of November, unemployment was up 2% since last year.

In a recent study, the council claims there have been several hundred thousand drivers that have let their insurance lapse, or dropped it in the last year.

What this means is that your odds of getting hit by a driver that is uninsured have gone up drastically, and usually people who are uninsured don’t have very many assets if you plan to sue for damages.

For people who have the funds, coverage for being hit by underinsured or uninsured drivers has become a necessary protection even though it raises your premium 7% to 9%.  And, you don’t want to let your insurance lapse because you will be charged a 25% to 50% surcharge for a new policy.  Also, drivers should protect themselves with a roadside assistance program and used car warranties.