WASHINGTON, D.C. -

Legislation introduced this week in the U.S. House of Representatives could lead to removal of a mandate the National Automobile Dealers Association calls “obsolete.”

NADA explained that currently the National Highway Traffic Safety Administration is required to print and distribute an insurance report to more than 17,500 franchised dealerships across the country. The report is mailed through the U.S. Post Office.

The association stated the “Relative Collision Insurance Cost Information” booklet sought to provide buyers with insurance data on the cost of repairing new models.

Under a 1972 law, NHTSA is required to collect, prepare, print and distribute the report to franchised dealerships. NADA said dealers are required to provide it to their customers upon request. 

The association discovered through a recent survey of 815 members that 96 percent of dealers reported that none of their customers had ever asked to see the booklet.

Officials indicated NHTSA has been publishing the booklet since 1991.

“The reality in dealer showrooms needs to be recognized,” NADA president Phil Brady declared. “This government mandate should be eliminated.”

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

“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 consumers practically never use it,” said Bob Vancavage, president of the New York State Automobile Dealers Association.

“New York new-car dealers applaud Congressman Owens’ effort to eliminate this needless government mandate,” Vancavage continued.

Bill Lehman, president of the Mississippi Automobile Dealers Association, added, “Cutting unnecessary federal spending and obsolete rules — no matter how small — is one way to get the economy back on track.

“I commend Congressman Harper for rooting out this government waste,” Lehman went on to say.

To see a copy of a “Relative Collision Insurance Cost Information” booklet, click here.