NADA calls for end to distribution of insurance data by dealers

NADA calls for end to distribution of insurance data by dealers

NADA is putting its weight behind legislation introduced this week in the U.S. House of Representatives to repeal an obsolete mandate that requires the National Highway Traffic Safety Administration (NHTSA) to print and distribute an insurance report (The Relative Collision Insurance Cost Information) to new-car dealerships across the country, which they must then provide to customers who request it.

The requirement dates back to a 1972 law that called on NHTSA to collect, prepare, print and distribute insurance data on the cost of repairing new vehicles to car buyers.

NADA, in a recent survey of its members, found that just 4% of them reported customers asking to see the booklet. NHTSA has been publishing the booklet since 1991. The positive reality in dealer showrooms needs to be recognized, said NADA President Phil Brady. This government mandate should be eliminated.

Under H.R. 5648, introduced by Reps. Bill Owens, (D-NY) and Gregg Harper, (R-MS), NHTSA could still make insurance loss data available online if consumers in the market for a new vehicle find it useful.