If you own a classic car in Michigan, and still have your vehicle registered with regular license plates, you’re missing out on a lot of easy savings! In fact those savings amount to over $153 per year, per vehicle. If your classic/antique vehicle qualifies, making the switch on your registration from standard to historical is very easy. It’s just a matter of filling out an application. This article will go over everything you need to know to help you get the process started.
Where do the savings come from?
The savings comes from two places:
How much do I save?
Starting on July 1, 2018, and going until July 1, 2019, the mandatory MCCA fees for a regular vehicle goes up to $192 per year, per vehicle. Historical vehicles only pay 20% of that, which is $38.40. So that’s a savings of $153.60 in MCCA fees alone. In addition, the savings on yearly registration fees are significant. In Michigan, registration fees vary according to the vehicle. So the savings will vary as well.
To calculate your yearly average savings on the registration part, take the amount you would pay yearly for renewal as a regular vehicle, and subtract three dollars (yearly average cost of historical registration fee). Add that to the $153.60 you saved on MCCA fees, and you have your yearly average savings total.
Why your next upcoming registration renewal is the perfect time to switch to historical plates.
This upcoming fiscal year will be the highest that MCCA fees have ever been in its 40 year history. As I mentioned earlier, it goes up to $192 per year, per vehicle in July. This breaks the previous all-time high of $186. So this would be the ideal time to make the change. The savings mentioned earlier is as high as it’s ever been in any years past.
Should I insure my classic car on my regular auto insurance policy or buy a separate classic car insurance policy?
If your classic car qualifies for history tags (see the qualifications I listed above), it most likely qualifies for classic car insurance also. And if so, you definitely want to insure your classic car on its own separate policy. Coverage is much better with classic car insurance than versus regular car insurance…. And the best part, classic car insurance premiums are usually much less than regular auto insurance due to it being only an occasional use vehicle. A classic car insurance policy beats regular auto insurance in coverage, price and claims (claims adjusters specialize in classic cars).
How much does Classic Car Insurance cost?
Prices vary based on the value of the vehicle and many other factors. If you would like help finding you the lowest classic car insurance rate, click on the link below and I will be happy to run you a quote with three of the leading classic car insurance companies.
Click here to get an Online Classic Car Insurance Quote
How does Ohio SR22 Bond Auto insurance work?
There is a lot of confusion about SR22's and how they work. Much of the confusion is because of common terminology that we all use, but is misleading. For example:
An SR22 is NOT a bond.
An SR22 is NOT auto insurance either.
An SR22 is a state filing that you can attach to some type of auto insurance policy, if the BMV requires you to carry it. An SR22 can attach to a regular auto insurance policy, a Financial Responsibility Bond (Ohio is the only state that has such a bond), or a Named Operator policy (for people who need auto insurance but don't own a vehicle).
An SR22 state filing is something that the BMV requires drivers to obtain after a license suspension. Once a suspended driver has met all the requirements to get his/her license back, getting an SR22 filing is usually the last step a driver needs to take before getting their license reinstated.
How does an SR22 filing work?
When you attach an SR22 onto some type of an auto insurance policy, the auto insurance company is required by law to notify the BMV that you have at least state minimum liability auto insurance coverage. This triggers a license reinstatement (assuming all other requirements have been met)....
However, if you ever were to lapse or cancel on your auto insurance policy in the future, the auto insurance is required by law to "tattle" on you to the BMV. Once the BMV gets notice that you have canceled on your policy, they will suspend your license again... Your license will remain suspended until you file another active SR22, whether it be reinstating your old policy or starting a new one.
So the best way to understand how an SR22 filing works is to think of it as a "tattle-tale" attachment. It tells on you when you cancel your policy, as state law requires the auto insurance companies to do.
How long do I have to carry an SR22 filing?
For the vast majority of drivers, the SR22 filing period lasts usually three years. But it can be more or less, especially if it is court ordered.
One last tip:
Not all auto insurance companies will do SR22 filings. And some will charge a fortune to do so.... You need to find an independent agent who specializes in high risk auto insurance to get an affordable rate. The companies they carry are more SR22 friendly and go easy on drivers with dings on their driving record.
Click here to get an Ohio SR22 Bond Quote
You’ve probably wondered what factors auto insurance companies use to calculate your insurance rate. There are basically nine major factors that auto insurance companies use. I will list each one of them and give an explanation as to how they affect your rate. I get asked all the time, “Why does my neighbor have higher coverage than I do yet still pays a lower auto insurance rate?” …… The answer to that question is one of two things: Either (A) it’s because of a combination of the nine factors listed below, or (B) your neighbor did a better job of shopping around for auto insurance than you did.
The thing you need to keep in mind is that no two auto insurance companies prioritize or weigh these factors exactly the same. Every company does their own thing when it comes to how they calculate auto insurance rates. Therefore, there is no way for me to prioritize this list. But you’ll still get a good understanding of what goes into calculating auto insurance rates. So let’s get started with these factors……
1. Age – Driving ages usually range from 16-85…. Drivers toward the outer parts of that range tend to pay more than people in the middle of that age range. That is, someone in their 40’s, 50’s or 60’s will pay less than teenagers or drivers in their late 70’s or 80’s. But again, each company sets those age ranges differently.
2. Location – While traffic crash and crime statistics do play a part, the size of the town you live in usually is the biggest indicator…. Generally, people who live in smaller towns pay less than people from big cities.
3. Residential Status – Homeowners pay less than renters do… Being a homeowner usually includes a big discount with most companies.
4. Marital Status – Married drivers pay less than single, separated or divorced drivers. You might think this is silly and perhaps unfair. But crash statistics don’t lie, and married people tend to be in fewer accidents than unmarried people. As far as people who are widowed, some companies classify them as still being married, while other companies classify them as being single.
5. Credit Rating – If we tried to prioritize this list by importance, credit rating would jump all over the place from one company to the next. Some auto insurance companies make credit score a huge factor, while others only figure credit score in as a tiny factor. Some companies check credit scores like a credit card company would. Other companies only do soft credit pulls…. The good news is that shopping around for auto insurance doesn’t affect your credit like shopping around for credit cards does… Some credit scores get dinged by having multiple credit card or loan inquiries…. Fortunately, that’s not the case with auto insurance. It doesn’t hurt your score at all to shop around for auto insurance.
6. Driving Record and Claims History – This tells what accidents, tickets and prior insurance claims you have. These are obtained by two major sources; your MVR (Motor vehicle report from the state BMV) and your CLUE score (your auto insurance history). Obviously, someone with a clean record will pay less than someone with dings on their driving record.
7. Having Prior Insurance – This also tends to be a big factor with most auto insurance companies. Having at least six months of active auto insurance coverage usually gets a big discount. Some companies will offer even bigger discounts for having active coverage farther back than six months. Some companies will also offer bigger discounts for having liability coverage that is higher than state minimum levels.
8. Gender – Men may joke about “women drivers = no survivors”, but the reality is that it is not true. Statistics show that women are the safer drivers, and thus pay a slightly lower rate than men.
9. Vehicle(s) insured – This is broken down in two parts:
Those are the nine major factors. Auto insurance companies prioritize them any way they want to. That’s why it’s important to shop around for auto insurance at least every two years.
Click here to get an auto insurance quote
Dan Lyles is an Independent Insurance Agent serving Ohio, Indiana, Michigan, Pennsylvania, Virginia and West Virginia..