Want Cash for That Clunker? Be Sure It Had Insurance

With government incentives in mind, many motorists may be readying todump their gas-guzzlers for new cars. But few may know they'll have toprove it's been insured for a full year before it qualifies for the"Cash For Clunkers" trade-in.

The Car Allowance Rebate System (CARS) program kicks into high gear thisweek. The NationalHighway Traffic Safety Administration's final CARS rulesinclude insurance requirements.

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

One or more insurance cards containing the make, model, model year andvehicle 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 thevehicle and the period of continuous coverage.

"Auto insurers will play an important role in helping to remove anestimated 250,000 gas-guzzlers nationwide," said Candysse Miller,executive director of the InsuranceInformation Network of California. "Consumers should check withtheir insurers or agents for help with the required documentation and tomake sure that they are getting the right insurance for their newpurchase."

The CARS program stipulates that a car or truck is an eligible trade-invehicle so long as it:

Was manufactured less than 25 years ago;

Is in drivable condition;

Has a combined city/highway fuel economy of 18 miles per gallon orless; and

Has been continuously insured and registered for the full yearpreceding the trade-in.

The CARS program helps pay for the purchase or lease of a new, morefuel-efficient car or truck via credits of either $3,500 or $4,500. Thenew vehicle must have a manufacturer's suggested retail price of $45,000or less. The program will end on November 1st or earlier ifthe $1 billion rebate budget has been exhausted.

Consumers interested in saving money on insurance for their new autopurchase can visit 9Ways to Save Money on Your Auto Insurance Policy.

IINC is a non-profit, non-lobbying insurance communications association.For more information on this and other issues, please visit the IINC Website at www.iinc.orgor follow IINC on Twitter at www.twitter.com/iinc.