Tuesday, July 21, 2009

To Get A Rebate, Your "Clunker" Must Have Had Insurance

Below is an article from one of my carriers, Allied Insurance, that discusses the insurance requirement of President Obama's new Car Allowance Rebate System (CARS), or "Cash For Clunkers." In order to qualify for the rebate, consumers must show that their "clunker" has been continuously insured for at least 12 months.

CARS -- Car Allowance Rebate System (Cash for Clunkers)
President Obama in June 2009 signed into law the Car Allowance Rebate System (CARS) also known as "Cash for Clunkers. This program, administered by the National Highway Traffic Safety Administration (NHTSA), is designed to increase fuel efficiency and stimulate auto sales. It also has the potential of generating net new auto premiums for insurers. Program Highlights:
· This program will help consumers purchase a new vehicle when trading in a less fuel efficient vehicle.
· Consumers can get between $3,500 and $4,500 per vehicle, depending on fuel efficiency of the new vehicle vs. the old vehicle.
· The NHTSA is scheduled to release regulations regarding required forms for compliance with CARS on or around July 24.

What we know so far:
· Consumers will be required to provide proof that their trade-in vehicle has been continuously insured for the most recent 12 months.
· The federal government has yet to define many details of this program, including what will be accepted as proof of continuous coverage.
· There have already been news stories released about this program, so you may receive questions from your clients before all details are finalized.
· Consumers can visit http://www.cars.gov/ to determine eligibility and review information about the program.
· Since CARS is a Federal program and not a Nationwide program, consumers should rely on the CARS website for their information.

Our job will be to provide any policyholder or prior policyholder with the evidence of insurance. Once the NHTSA regulations for compliance are finalized, we will provide additional information regarding the program and what forms you may be asked to provide.
For more information or answers to your questions, please visit the http://www.cars.gov/ website or contact your Sales Manager. Once the final details of the program are known, additional information will be posted.

1 comment:

  1. It's already not very hot. Reports of scams online and at dealerships as the plan nears. Read: http://tinyurl.com/nlv3ed