Government Program Requires Proof of Auto Insurance

People who plan to participate in the government's Cash for Clunkers program are being reminded that they need to have proof that their older vehicles have auto insurance.

Candysse Miller of the Insurance Information Network of California pointed out this week that prior to trading in a vehicle under the government program, it must have been insured and registered for the previous year.

With that in mind, she is reminding consumers to have the proper documentation on hand when they shop for new vehicles at participating dealers, who can be found on the government's Cars.gov website.

The program, which kicked off late last week, provides drivers with rebates of up to $4,500 if they trade in their older vehicles for new, more fuel efficient models.

Cash for Clunkers will last through this fall or until its funding runs out, and the program is said to be generating strong public interest. Along with needing proof of their current coverage, many people who buy a new car this summer may also find it in their interest to consider a new auto insurance policy as well.