Lack of Insurance Won’t Keep Wisconsinites From ‘Clunkers’ Program

August 3, 2009

The federal government is changing the original “cash for clunkers” program so some Wisconsin drivers won’t be excluded.

The Car Allowance Rebate System program required a car be insured for at least one year prior to trade-in for a consumer to qualify for the rebate of up to $4,500.

But U.S. Sen. Russ Feingold, a Democrat, said current Wisconsin law doesn’t require drivers to have insurance. That means about 15 percent of state drivers could be excluded.

In a news release, Feingold said Transportation Secretary Ray LaHood agreed to the change.

Originally, $1 billion was earmarked for the program, but that was used in less than a week. The U.S. House has approved $2 billion more. The Senate is scheduled to consider the measure this coming week.

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