Michigan Auto Insurance Rip-Off for Collectors

Have you paid your auto insurance yet this year? If you have, you've noticed an increase of $60 PER CAR. This includes all of your seldom-driven classics as well as your daily go-to-work ride. Read on....<P>This is due to an increase in payment to something called the Michigan Catastrophic Claims Association (MCCA). [see website at <A HREF="http://www.cis.state.mi.us/ofis]" TARGET=_blank>www.cis.state.mi.us/ofis]</A> <P>For those of you that don't live in Michigan (or for those that didn't realize they were paying it), the MCCA assessment is essentially a "slush fund" for the auto insurance companies to protect them from losses. (Gee, isn't that what the basic premiums are supposed to do?). For 2001, the amount was $14 per car so you may not have even noticed it.<P>Unlike the rest of your coverage, which is based on the value of the car, miles driven, repair costs, personal risk factors, etc., the MCCA assessment is a FLAT FEE for ANY car that is insured. <P>Yes, that's right--you pay the same amount for your 1953 "classic" as you do on a new $50,000 Cadillac. REGARDLESS of how many miles you drive, or whether the car is only on the road a few months of the year!!<P>If you're paying $1200 a year for insurance on your new car, $60 isn't even going to be noticed. However, if you're paying $75 to $100 per year, per car, for "classic" insurance (like JC Taylor, Haggerty, etc.), then $60 per car is VERY noticeable. If you have several "classics" then start multiplying!<P>Now I don't know about the rest of you, but my beef isn't paying this fee for my daily ride. My beef is paying this for each and every old car I have that is in storage 7 months a year, and driven under 500 miles a year. <P>In Michigan, when we register our vehicles as "classics", we are agreeing to limit the miles driven. When we buy collector car insurance, we are similarly restricted in the use of our cars. I ask you, then, is it not fair to expect an excemption from this MCCA payment, using the same logic of "limited use"? The collectors of Michigan need to demand it!<P>I urge you to write your state legislators and help them see the logic of eliminating collector cars from the "FLAT FEE" methods of the MCCA. Tell them....<P>1. Collector cars see extemely limited use, both in calendar months, and miles driven.<P>2. Collector cars represent an extremely low risk for insurance claims (as indicated by the very low rates offered).<P>3. Many collectors have multiple cars, yet can only use one at a time. <P>4. Flat fees, without consideration for insurance risk or vehicle usage profile represent a gross and unfair prejudice towards the hobbyist that is trying to do his "right" and legal duty by insuring ALL his collector vehicles.<P><BR>It may be too late to affect the MCCA assessment for 2002, but this payment is reviewed yearly. Let's all pitch a [censored] and get some relief for future years!

I wish I could get the govnt. to help me insure that my business doesn't lose money. I thought that premiums were supposed to cover all this. I'm sure this will spread to other states.

Terry,<BR>I agree completely! By the way, the "justification" for the MCCA fund is that Michigan is supposedly the only state that has UNLIMITED personal injury protection benefits. The fund is to "reimburse" the insurance companies for benefits that exceed $250,000.<P>I have received a private email from a Michigan collector that states he believes a bill to exempt classic cars from MCCA has already been introduced. I will attempt to learn more about this---or if anyone reading this knows about it, enlighten us!

Thanks to another AACA member, I have learned that there has ALREADY been legislation introduced to seek an exemption of the MCCA surcharge for collector vehicles.<P>Michigan House of Representatives Bill HR4007 was introduced by Rep. Ron Jelenik ®.<P>I strongly urge ALL Michigan collectors to contact their appropriate representatives and demand that they support this bill.<P>For more information (for you or your representative), the Hagerty insurance site has a nice concise postion statement that successfully argues why classic cars should be exempt from MCCA. The direct link is <A HREF="http://www.hagerty.com/Press/MCCAposition.asp" TARGET=_blank>http://www.hagerty.com/Press/MCCAposition.asp</A>