Cash for Clunkers is a wonderful government incentive program which allows Americans to turn in their old high MPG vehicles for new vehicles.  But according to this Insurancenewsnet.com what people do not know is you have to prove the car has been insured for the previous 12-month period.

From the Article:

“Anyone participating in the program must provide proof that the car has been continuously insured for at least one year. Proof may include:  

• One or more insurance cards containing the make, model, model year and vehicle identification number of the insured trade-in vehicle;
• Insurance policy documents showing one year’s previous coverage; or
• A signed letter on insurance company letterhead identifying the vehicle and the period of continuous coverage. “

So if you plan to partake in the Cash for Clunkers program, to avoid a hassle at the dealership, first contact your insurance agent to obtain proper documentation. 

Also act fast because the federal government is allowing $1.0 Billion for this program and believe it or not that money is moving out quickly.  Estimates are the program budget will run out by early September.  So if you plan to participate do it now!

Thank you,

Ryan H.

Related posts:

1. “Green” Insurance is Here
2. What Should be your Teen’s First Car?
3. Insurance Concerns for Domestic Partners
4. When Do I Drop Collision Coverage?
5. I Hate This Life Insurance Question