President Obama Signs Bill Repealing Car Dealer Insurance Requirement

January 11, 2013

President Barack Obama has signed a law repealing an outdated requirement that car dealerships keep on hand an information booklet about insurance.

The bipartisan legislation, H.R. 5859, passed the Senate in December by unanimous consent after the House passed it in July by voice vote.

The Obama administration supported the bill because, it said,  the data in booklet is “rarely used and not useful.” The administration also stated “a prospective buyer does not need a brochure from the federal government to obtain this information, since insurance agents are trained to provide advice on how model selection affects insurance premiums.”

The requirement in a 1972 law directed the National Highway Traffic Safety Administration to prepare, print and mail the booklet, Relative Collision Insurance Cost Information, to new-car dealerships annually. Dealers are required to provide it to their customers upon request or face a $1,000 per violation fine.

The legislation repealing the requirement was endorsed by the National Automobile Dealers Association (NADA).

“The federal government has spent hundreds of thousands of dollars since 1991 to print and mail this booklet to every new-car dealer in America, yet very few consumers ever ask for it,” said NADA Chairman Bill Underriner, a dealer from Billings, Mont.

 

 

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Latest Comments

  • January 11, 2013 at 5:31 pm
    confused says:
    I have delt with tons of dealerships as an insurance agent and I have never even heard that they were to even have the darn paper in the building. Like any dealership would re... read more
  • January 11, 2013 at 3:58 pm
    Dave says:
    Actually he should be following the recommendations of HIS debt reduction commission which he initially postponed until after the 2010 elections and then soon afterwards total... read more
  • January 11, 2013 at 3:57 pm
    Chad Balaamaba says:
    but what about the jobs of the govt employees who prepare this booklet; they research 11 months of the year to ensure it is chock full of the latest and greatest info...the mu... read more
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