In the wake of the recent deadly crash involving a Tesla Model S sedan, automakers are trying to strike a deal with the government to keep cars on the road in the event of a crash.
In an attempt to avoid having to buy additional insurance for their cars, automakers such as GM, Ford, Honda and Nissan are pushing for government assistance to help cover damages to vehicles caused by a human error or by the effects of an accident.
The idea of using the government’s auto insurance program to help companies cover their cars after an accident is nothing new.
But it has always been difficult to get the federal government to pay for it, since automakers have to pay their share of premiums on their own.
That’s why, in the wake, the Obama administration is seeking to offer an exception to the auto insurance contracts it has with auto companies.
The exception, known as a “trade-in agreement,” would allow automakers to use the government program to cover the costs of a repair and insurance for a replacement or repair, regardless of whether the vehicle is still on the market.
The administration is also pushing to allow insurers to use some of the funds to cover damage from a crash, including from a collision with another vehicle or a collision involving someone who is not injured.
The White House and the National Highway Traffic Safety Administration have not released a cost estimate for the new rule, but it has already attracted support from the American Automobile Association and some automakers.
For example, the group’s president, Alan Green, has argued that it would help ensure the safety of the nation’s roads.
The Association of American Automakers, the largest auto insurance industry, has supported the administration’s plan.
“The auto industry has been very supportive of this policy and believes it is a critical first step in improving the safety and reliability of our roads,” David Stitt, the president of the association, said in a statement.
“With this new rule in place, the administration has provided significant flexibility to automakers and their customers, and it will be good for everyone to have the same protection in case of a potential collision or other vehicle-related incident.”
The Whitehouse has also suggested that the new policy would not affect the insurance premiums for those who are eligible for federal auto assistance, as they would not be covered under the federal program.
“This waiver would not apply to any individual who is eligible for auto assistance under the National Automobile Insurance Program (NALIP) or any individual for whom the Department of Transportation has issued a waiver of the coverage under the NALIP program,” a White House press release said.
“In addition, any individual eligible for such assistance will not be subject to the cost-sharing provisions in the NALSIP waiver.”
The administration also suggested it would not force automakers to sell their cars if they cannot repair them or replace them if they are damaged.
“The administration will continue to ensure that the auto industry is able to continue to operate and operate safely,” the press release stated.