As Spring takes hold in Michigan, the seasonal change of bringing vehicles out of storage from the winter is a frequent call in our office. Whether the vehicle is a classic, historical, sports car, or daily driver, making sure the right coverage is in place is important before hitting the road. When doing so, keep the following items in mind:
How will the vehicle be used? - For many clients, a summer car is one that has limited usage. Many policies offer discounted rates for the reduced amount of time on the road and even deeper discounts when the ratio of vehicles to drivers increases. Making sure the vehicle is rated correctly may help to provide the right coverage and the right rate.
How is the vehicle registered? – Michigan does allow for different vehicle registrations which allows for different insurance options. For vehicles 25 years or older, some clients are eligible for antique auto insurance which rates the vehicle for very limited usage.
What is the vehicle’s value? - A rule of thumb is the “10% rule” which weighs the cost of comprehensive and collision insurance to the vehicles value. The rule states that the annual cost of these coverages should not be greater than 10% of the vehicles fair market value. Another factor is if the vehicle is a “classic” and my have an appraised value that differs from the market. Discussing factors like this with a licensed agent can help in the decision process.
Will you remember to change coverage with the change of seasons? - One of the worst calls an insurance agent can receive is “did I call you to put insurance back on the car?” While changing the coverage back and forth when the vehicle is not in use may save money, consider what steps you may take to ensure that there is never a lapse in coverage when it is needed most.
Once the right coverage is in place, always make sure to have your proof of insurance and your agent’s business card in the vehicle. We always hope it will not be needed, but like the right coverage, it is better to have it ready before hitting the road.