Insurance Agents Boosted By Clunker Sales

Most consumers who sped off dealership lots in new vehicles, thanks to the government's cash rebate incentive Clunkers also departed from something else - more expensive car insurance.

Car Allowance compensation system has boosted sales of new cars 700.000 of the country after the driver in the course of their older gas guzzlers for new, more fuel efficient vehicles.

Local insurance agents say, new cars require more coverage, and their customer traffic began to increase when it entered into force on 27 July, did not end until August 24.

"We are seeing increased traffic and talked with some cash to customers clunker said Wilson Brown of Nationwide Insurance at 405 N. Elm St." A lot of people have added comprehensive and collision coverage of their policies (after buying new cars). "

Since most of the "clunkers" are older vehicles that have not been paid, many clients who have participated in the program are covered only by liability insurance or coverage that is offered for bodily injury or property damage for which the insured driver is deemed responsible . New cars bought through a loan or lease, however, is required by most lenders have collision coverage that pays for the insured driver of the vehicle when they are involved in the accident.

"People trade in many older cars, which not only responsibility, and because they are buying new cars, they are adding to their policy," said James Whitley, the Morton Whitley Insurance at 2610 N. Main St. It has created a business and increase premiums.

Whitley said customers also visited the agency before going to the dealership in order to determine whether he can afford the new policy.

Dewey Beckner, an agent with Allstate Insurance Co. said it is impossible to know how much money an average customer Clunkers increased their car insurance payments, because it depends on the number of vehicles are attached to the policy, but the program still mixed a few new businesses.

"We are disappointed that we did not get a new policy from the program, and it is people who have insurance, adding," he said. But there were many good things about this program. "
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