In June, 2009, President Obama 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.
Program Highlights
- CARS (or the "Cash for Clunkers" program) is designed to increase fuel efficiency and stimulate auto sales.
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This program will help consumers purchase a new, more fuel efficient vehicle when trading in a less fuel efficient vehicle.
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Consumers can get between $3,500 and $4,500 per vehicle, depending on fuel efficiency of the new vehicle vs. the old vehicle.
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The NHTSA is scheduled to release regulations regarding required forms for compliance with CARS on or around July 24.
What we know so far
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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.
- Consumers can visit 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.