Bill would end insurance exemption, add ownership proof for collector vehicle plates

Senate Bill 5127 would remove the current exemption that lets collector vehicles and horseless carriages avoid the state's mandatory automobile liability insurance requirements and add new documentation requirements for new collector registrations.

Brian Moore, committee staff, told the Senate Transportation Committee that under current law a collector plate is a lifetime registration (after a $35 fee) and collector vehicles are exempt from the state's mandatory liability-insurance law. Under SB 5127, the exemption would be repealed and, beginning Jan. 15, 2026, applicants for a collector plate must provide proof of a collector-vehicle insurance policy meeting statutory minimums (currently $25,000 bodily injury per person / $50,000 per incident / $10,000 property). Applicants would also need to show proof of ownership and current registration of a second vehicle intended for daily driving, commuting or work; the Department of Licensing (DOL) could grant exceptions for alternative transportation arrangements.

Moore also said the horseless carriage age threshold would change to vehicles built before Jan. 1, 1916. The Department of Licensing provided a fiscal note estimating a one-time cost of $222,000 (for mailings and programming) and said revenue impacts were indeterminate but potentially positive, noting DOL data showing roughly 10% of collector registrations lack a current second-car registration.

Sponsor Senator John Lubbock said the bill targets abuse of the collector program, where some owners use collector plates for daily-driven commuter vehicles. "This legislation will put the brakes on this loophole and require anyone registering new collector cars to have a second vehicle with some exceptions," Lubbock said.

Several commenters spoke during the hearing. Les Holm, a collector-vehicle owner from Burien, said he supports the insurance requirement but objected to requiring proof of a second vehicle because no other vehicle owner in the state is required to show proof of another registered vehicle. Alejandro Sanchez, deputy director at DOL, described the approach as modest and said DOL had consulted with collector clubs and insurers. "We are seeing a traffic safety component to this as well," Sanchez said, adding DOL data shows 35% of collisions involving a collector vehicle include an uninsured driver and that insurance rates for collector policies are generally cheaper than standard auto policies.

The committee closed the public hearing after remote and in-person testimony. No committee vote on SB 5127 was recorded in the Jan. 20 transcript.