Chicago, IL (Vocus) August 5, 2009 –-
As fears about the uncertainty of the “Cash for Clunkers” program increases, so have US auto sales. In fact, they rose to their highest pace in 11 months in July. Used car sales also enjoyed a boost in sales. As more vehicles are hitting the roads, agents are preparing for an increased amount of people looking for car insurance premiums.
The popularity of the trade-in program has lead to the funding for the plan to be expected to run out several months before scheduled. Since it may offer the biggest return on the investment of all of the stimulus efforts, in terms of jump starting the economy, the House approved a $2 billion funding extension. On Monday, the campaign to persuade senators to approve $2 billion more in funding stepped up in hopes it would be passed before Congress goes on vacation at the end of this week.
As consumers continue to flock to showrooms, agents have been gearing up to take on the expected increase in people looking for car insurance premiums. Some have been stepping up marketing efforts to become more appealing to people shopping for a low priced auto insurance quote while others are refining their discounts for people who drive hybrids.
The “Cash for Clunkers” program has been designed to stimulate the economy as well as remove high polluting vehicles from the roads to be replaced with more fuel efficient models. Consumers can trade in their older vehicles that rate at 18 miles or less per gallon of gas for a $3,500 government voucher toward the purchase of new car that is at least 4 mpg more efficient. For a 10 mpg improvement, the consumer will receive a voucher for $4,500.
When formulating an auto insurance quote for a hybrid driver, many agents will offer up to a 10% discount. This reduction in their car insurance premiums is due to the way insurance companies view hybrid drivers. Insurance companies base their premiums on risk. Hybrid owners fall into the “preferred insured category,” which means they will more likely enjoy the cheapest car insurance quotes.
Statistically, hybrid owners are in the preferred insured category because they represent the least amount of risk for insurance companies. They are typically more mature drivers who are not as likely to be in an accident. Generally, they are married men and women falling between the ages of 41 and 60 who are responsible citizens and financially stable. As such, they will more likely receive an auto insurance quote that is cheaper than another car insurance quote.