States Want Auto Insurance Provision Changed in Clunkers Program

New Hampshire and Wisconsin's status as the only remaining states to allow drivers to not carry auto insurance has raised issues for residents hoping to participate in the Cash for Clunkers program.

This week, both congressional delegations from Wisconsin and New Hampshire wrote to Transportation Secretary Ray LaHood calling for an amendment to the popular new program.

People who hope to trade in their old cars and receive the government-funded discount must demonstrate that they have had insurance for at least the past year.

"The intent of the program is to incentivize consumers to purchase newer model vehicles, and all New Hampshire residents should have an equal opportunity to participate," said Senator Jeanne Shaheen on her website.

Wisconsin recently passed a law that will require all state drivers to be insured by next June. This leaves New Hampshire as the last state to not require drivers to carry auto insurance policies.