New Program Boosting Demand for Auto Insurance

Thousands of Americans will be in the market for new auto insurance policies in light of the popularity of the government's new Car Allowance Rebate System.

The federal program, also known as "Cash for Clunkers," went into effect on Friday. Under the program, consumers can trade in older, gas-guzzling vehicles for rebates of up to $4,500 to buy new, more fuel-efficient models. A federal website, Cars.gov, provides full information on the program, including participating dealers.

However, the program only lasts until November 1, or for as long as its $1 billion in funding lasts.

With that in mind, consumers find themselves dealing with a limited window of opportunity if they hope to take advantage of the program.

This is especially the case when considering a recent Wall Street Journal article that said dealers are already reporting increased customer traffic and an upswing in sales.

The goal of the plan is to boost the auto industry while also helping the environment. However, one other effect will be an upswing in consumers who are shopping for new auto insurance policies. Many of them will be able to find great deals if they take some time to shop around.