car has been fully insured for an entire year prior to the trade in, according to
rules released on the federal program this week.
Officials at the National Highway Traffic Safety Administration, which is overseeing the program, say buyers must show proof of insurance: an
insurance ID card, a letter from the insurance company, or a printout from the insurance company documenting insurance coverage on their clunker to
"If you don't have your ID card or other required documentation showing proof of insurance coverage, I recommend you contact your insurance agent
who can help you," said Dave Prendergast, field vice president for Allstate's Capital Region. Prendergast said the documentation also must show the insurance policy number, the vehicle identification number (VIN) and start and
end date of the insurance coverage.
Prendergast noted that owners also must have proof of registration going back one year and a "clear" title to the car, which means free of any liens.
The "cash for clunkers" program requires the vehicle must be less than 25-years- old when traded in. The manufactured date can usually be found on the driver's door or on the door jamb.
Under the government's $1 billion program, new car buyers can receive a credit of either $3500 or $4500 based on the difference of the fuel economy
of the vehicle that is being traded in and the fuel economy of the new vehicle
The program is scheduled to last until either November 1 or whenever the funds run out.