What Are The Benefits of Private Insurance & Holding The MCO / MSO For A Vehicle
The Manufacture's Certificate of Origin (MCO) or Manufacturer’s Statement of Origin (MSO) can be obtained from the original manufacture / authorized dealer (i.e. the Kia dealership has the MCO / MSO for their Kia cars but not for other brands on their lot) by purchasing the vehicle without financing of any kind (i.e. paid in full). Manufactured vehicles are not automatically registered with any state or nation. So there is no title or registration when they are first sold. The "pink slip" MCO / MSO can, and must, be requested immediately after signing the paperwork - do not leave the dealership without it in hand.
If financing is acquired, then the dealer will turn in the MCO / MSO at the DMV for a state title and registration. The lender financing the purchase will keep the title until the vehicle loan is paid off, but the MCO / MSO cannot be re-obtained unless DMV vehicle registration is revoked and a Certified Copy of the MCO / MSO is obtained, and only by manufacture / dealer request. To revoke a vehicle's registration mail its plates, decal, and a signed request for cancellation via certified mail with return signature required to any of the state's DMV offices. To obtain the MCO / MSO, locate the dealer who originally sold the vehicle as they are legally responsible for its custody. If the dealer does not have a copy on file, they must request the vehicle’s manufacturer for a certified copy. If the original dealer is unknown, use a vehicle title history search service such as CarFax.com, Carproof.com, or AutoCheck.com, or contact the manufacturer's headquarters to locate the original owner. For any questions or issues, contact the American Association of Motor Vehicle Administrators (AAMVA).
With an MCO / MSO the owner of the vehicle may choose to avoid public insurance (e.g. Geico, AllState, Progressive) and self-insure privately. This next step will require some research as each state has different financial requirements, but most states often require ~$25,000 that must be kept in a secured bank or holdings account to allow one to self-insure. Additionally, there is no need to obtain a license plate either; however, this can lead to big problems in large cities where there are a multitude of public officers that will pull over and harass a car without plates. This entire process provides little advantage save the ability to avoid all victimless tickets (e.g. red lights, stop signs, speeding, etcetera), obtain private insurance (although some states allow private insurance for financed vehicles), and it avoids the need for a license plate, although a Driver's License is still required to show one's competency to operate the given vehicle they have.
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