The cash for clunkers program bill was signed by President Obama aiming to reduce the number of old vehicles from the roads. The bill was intended to replace the old vehicles by newer ones which would reduce pollution levels, decrease fuel consumption, as well as boost car sales. Increased automobile sales ultimately would help revive the automobile industry and thus improve the nation's economy.

This program has been a major hit amongst auto dealers throughout the country. Thousands of old cars were exchanged for newer, fuel efficient models. A number of auto dealers have reported peak sales during the period that the program was on. There were reports of dealerships selling almost thirty cars on a single day which is definitely a notable achievement for a car dealer. The customers benefited from the cash rebates offered by the program towards purchase of a new car. Thus even customers who otherwise would not have bought a new car in natural circumstances have rushed to the dealers with their clunkers to take advantage of the program.

The repercussions of the car sales boost were not only felt by the car manufacturers and dealers, but even the automotive insurance companies. The increasing number of new cars equally necessitated auto insurance coverage.

The replacement and insurance cost of a clunker which has been involved in some accident is quite nominal. The reason is that these old cars value has depreciated over the years. The insurance coverage of older vehicles is no doubt appealing. However, old vehicle owners do not commonly spend a lot on those vehicles insurance. This is for the simple reason of the amount of replacement cost the insurance provider gives for these old vehicles in case of an involvement in an accident. On the contrary, the rates for auto insurance online quotes for new cars are higher as these vehicles have greater value as compared to the cars they are replacing.

Accident payouts for newer vehicles generally cost more. However the drivers of new vehicles usually are more cautious and tend to avoid accidents and damage to the new car. According to carinsurance.org, the automobile insurance providers thus can charge a greater premium for insuring new cars knowing the fact fully well that the owners are taking extra care of the new models as compared to the older ones.

Washington auto insurance company, Idaho auto insurance company and Oregon auto insurance company have greatly benefited from increased premium payments by the customers who have participated in the cash for clunkers program. The smart buyers who have taken benefit out of the $4500 discount have also gone a step further to examine the insurance coverage of these vehicles. The buyers have made sure that their brand new vehicles are wholly protected by the auto insurance plan they have selected.

While auto insurance providers have greatly benefited from the cash for clunkers program, several companies dealing with auto parts as well as general restoration of old cars have suffered badly. Overall, from the economic viewpoint, this program can be termed as quite a successful one.