Special Laws for Classic Car Insurance, Michigan

For real automotive buffs who drive vintage vehicles classic car insurance, Michigan agents state, is a must. Finding the right policy that covers all the important aspects of your unique vehicle can sometimes be difficult, but certainly not impossible. It is essential to understand the applicable state laws for classic cars, including auto insurance requirements, but also to ensure that your coverage will adequately cover replacement and repair costs.

About Vintage and Classic Cars in Michigan

There are many classic car clubs in the state. Even the Michigan Department of Motor Vehicles recognizes the appeal of classic lines and details not found in today’s newer models of automobiles. In 2005, the state celebrated the centennial of its transportation department by sponsoring a Cruisin’ Through the Century car show where classic car owners could enter their rides to be chosen as the representative for each year since 1905.

A cause for concern for many vintage auto buffs is the fact that with today’s newer vehicles being produced as economy, fuel-efficient rides, there will be no more classic hot rods to cherish in upcoming decades. This makes it all the more important for classic car insurance, Michigan residents realize. If they are unable to protect their current investment now, the chances of replacing it become slim.

And then there is the near-collapse many auto makers have experienced recently. With such historic brands as General Motors facing financial difficulties, there is little reason to believe they will ever go back to making the sports cars with big block engines manufactured in prior eras. If you own a vintage automobile, it is best to hang onto it and treasure it; it is unlikely you will ever be able to find another as the inventory of such vehicles is rapidly depleted.

Michigan State Vintage Auto Laws

If you live in the state of Michigan, “the automobile capital of the world”, you should be aware of several laws that pertain to your classic car and its auto insurance requirements.

First, let’s look at how MichiganState defines a historic vehicle. Any automobile that is older than 25 years or more and used solely as a collector’s item with occasional mileage that would include driving to and from car shows, parades, or activities related to classic car clubs. It cannot be used as the primary form of transportation for the owner.

If your auto qualifies under these guidelines, then you can apply for a special license plate that designates it as a historic vehicle. You can even request an official state license plate from the year your car was manufactured. A new historic vehicle plate registration costs $30 while an authentic one from year of manufacture will cost you $35 to register. In order to register your vehicle as historic, you must provide proof of ownership and proof of no-fault, classic car insurance, Michigan rules state.

Classic CarInsuranceMichiganState Laws

Because Michigan is one of those states that uses a no-fault policy for accidents, all drivers must obtain minimal levels of auto insurance that will pay benefits to anyone involved in an accident, regardless of who is at fault. What is different about Michigan is that it is the only state in the country to offer unlimited personal injury protection benefits through no-fault insurance policies.

The cost of implementing this policy is spread across all motorists in the state through a fee assessment. Be aware that when you are looking for classic car insurance, Michigan companies must add the amount of this fee into your insurance policy. It is usually added to your personal injury protection (PIP) coverage.

The good news for owners of historic vehicles is that they are assessed only 20% of the fee charged to other automobiles in the state. This is because they are on the road less, and much less likely to contribute to accidents. So, for the year 2009, most vehicles in Michigan are charged $125 for this personal injury benefit while the owner of a classic car will only pay $25, if it is registered as a historic vehicle.

All motor vehicles registered in the state of Michigan must be insured with minimum amounts for bodily injury and property damage, PIP, and property protection insurance. The auto insurance company must provide no-fault coverage specifically for Michigan requirements; out of state policies are not acceptable.

Bear in mind that although you may only want the minimum classic car insurance, Michigan drivers of a historic vehicle should consider collision and comprehensive coverage in order to protect the auto from damage or theft.