New car purchases inspired by the government’s Cash for Clunkers program could yield about $375 million for the insurance industry. Bloomberg.com reported that the nearly 700,000 new vehicle sales inspired by the program will cause insureds to upgrade or sign up for new policies with coverage that’s better than what they had for their traded-in clunkers.
“When they buy that new vehicle, the insurance generally will cost more,” Insurance Information Institute (III) President Robert Hartwig told Bloomberg.com. “It’s a new vehicle and people will normally take out full coverage of the car. Any auto insurer would stand to gain.”
Insurance companies told the Web site they expected to see small gains from the boost in car sales and expected more increases in auto insurance policy sales once the economy recovers.
Click HERE for the full story.
