How to Buy Collector Car Insurance

What should you look for, when buying insurance for a collector car? Insurance is a complex thing; something many enthusiasts don’t come to understand until it’s too late – when they are unhappy or furious over their treatment when a claim is filed.

In my work managing insurance claims in a repair shop I see a few common problem areas. Figure these things out with your agent BEFORE buying a policy, and you will head off 99% of the worst potential problems.  The first is total loss value.  That’s what an insurance company will pay you if your car is wrecked beyond repair, burnt to a crisp, stolen or lost in the ocean.  It’s determined three ways, and it’s VITAL you understand which you have.

AGREED VALUE – this kind of coverage pays the value you agree upon.  Your premiums are typically xx dollars per thousand, so a $100,000 policy will cost twice what a $50,000 policy costs.  If you buy $50,000 of coverage, and your car becomes a total loss, that is what you will get.  This is the only kind of coverage you want for most collector cars.

STATED VALUE – this sounds like agreed value, but it’s not.  Stated value will pay you the stated value, or the actual cash value, whichever is less.  Let’s say you buy $50,000 of stated value coverage, and you total the car.  The insurance company finds six similar cars offered for sale at prices ranging from $28-32,000.  Stated value coverage allows them to offer you $30,000 because that’s the average actual value as shown in the market.  The $50,000 you thought you had, isn’t.

Stated value is for all practical purposes the same as actual cash value, but they charge more for it.

ACTUAL CASH VALUE – this is the coverage most ordinary cars carry.  The insurance company sets the rate based on the average value of your car, and if the car becomes a total loss they pay the actual cash value at that time.  On a new Mercedes they might pay $80,000 (almost what it cost new) where the same car might fetch a $40,000 settlement a few years later as it had depreciated.  This coverage is usually fair and reasonable for modern cars, where replacements are easy to get and values are consistent.  It’s not very good for collector cars where value is often in the eye of the beholder.

The next problem area is claims handling.  All policies spell these terms out, but few enthusiasts read the fine print.  Here are a few questions to ask:

What constitutes a total loss, and what about “loss of collector value?”  IN many states the legislature of insurance commissioner has defined what constitutes a total loss.  In many states a total loss is a loss where the initial damage appraisal equals roughly 70% of the vehicle’s total loss value.  Depending on where you live, your insurer may or may not have control over this figure.  It’s good to know. 

In my state, as an example, a $100,000 car that suffers $60,000 damage will be fixed (not totaled), because that’s the law.  You may think it’s terrible and you may think your car’s collector value has been compromised, but in most cases there is nothing you can do.  So be aware.

Does your policy allow repair with new, original equipment parts?  Or does the policy say the first choice is used or aftermarket pieces?  Most people prefer the former; most policies provide the latter as the default.  Coverage may differ for glass and other parts in some states.  Deductibles can vary too.

Does your policy allow you to have anyone fix your car?  In some states your freedom of choice among licensed repair shops is a matter of law.  In other states shops are on some insurer’s approved lists but not others.  If you want the best shop in town fixing your baby, make sure the policy allows you to make that choice.

Does your policy pay prevailing rates for repair, or do they set an arbitrary limit.  Some places have a state-approved “standard rate” for auto body labor, which may work fine for repair of ordinary cars but prove unworkable for collector vehicles that require special skills.  If your car ends up at a shop that charges $69 per hour, and your insurer pays $38 an hour, you will probably have a problem. 

Does your policy allow betterment, and if so, when and how much?  Betterment is the term for the part of a loss you (the insured) are responsible for because the repaired car ends up “better than before the loss.”  Here’s an example:  Let’s say you have an all wheel drive car that gets into a crash and the two tires on the right are damaged. The tires are half worn. Your insurance company say they are charging you 50% betterment because the tires were worn, and they have to fit new tires to fix the car.  Your tire dealer says you need to replace all four tires because you have an all wheel drive car, but the insurance company says they are only responsible for what’s damaged.

That is a normal thing in most places and with most policies.  Betterment may be set by the insurance commissioner in your state or it may be something you can choose in a policy.  Know what it may be, before you have to pay it.

 If you understand the points above, and make good choices, you should end up with good coverage that you understand.  What about problems during the claims process?  Sadly, claims troubles are all too common, but they do not have to be.  At my company we’ve handled millions of dollars in claims and major problems are really rare.  But there are shops where every claim ends up as a fight.  What makes the difference?

That will be the subject of my next installment, so stay tuned

 John Elder Robison is the general manager of J E Robison Service Company, independent restoration and repair specialists in Springfield, Massachusetts.  John is a longtime technical consultant to the Rolls Royce Owner's Club and other car clubs, and he’s owned and restored many of these fine vehicles.  Find him online at www.robisonservice.com or in the real world at 413-785-1665

Motor Oil for Collector Cars

Motor oil – what to use, when, and why - is a surprisingly contentious topic, especially when it comes to collector cars.  I’ve seen so-called gentlemen get into fistfights over the stuff at more than one holiday party, when the effects of Mobil Synthetic Blend and Smirnoff vodka prove more than one could handle.

As New Years approaches I thought I’d share our philosophy at Robison Service, particularly as regards collector cars.

• We should begin by looking at what we want the oil to do, in a vintage vehicle
• We want an oil that has high natural strength – otherwise referred to as film strength or barrier strength.  This is the oil’s ability to prevent metal on metal wear in the moments before the oil pump begins delivering pressurized oil to the bearings.
• We want an oil that’s fairly thick at running temperature, because older engines have sloppier clearances, but not so thick as to be a drag on performance
• We want an oil with zinc additive for the metallurgy of vintage motors
• We want an oil with strong detergents to clean what are often dirty old motors
• We want an oil that’s free of waxes and compounds that form sludge in long storage and short cycle use.

There are not many oils marketed for this purpose.  The one we are using more and more is Castrol Syntec Edge 5-50 Classic Car Formula.  It’s replaced the older Castol GTX for vintage cars.   Mobil – to the best of my knowledge – does not have a comparable oil.

Readers of my columns know I’m a big believer in synthetic oils.  Their superior strength and durability are beyond dispute.  Some vintage car owners argue that durability does not matter in a car that’s driven 1,000 miles a year with annual oil changes, but the other features of synthetics DO matter. 

Synthetic oil is thinner when cold and stays thicker when hot.  That means a synthetic 5-50 is more pumpable than a conventional 20-50 on cold start, yet is actually thicker at 200 degrees when the motor is running.

  

The fact that synthetics are thinner when cold means the oil pump will begin circulating oil faster.  Engineers suggest that most wear happens in the seconds before the oil system gets up to pressure so that’s a vital benefit.

Older engines need a different set of additives than those optimized for new cars.  Syntec Classic is one of the few oils to offer vintage-tailored additives.

There are so many different grades of oil now, for so many purposes, that it’s difficult to make a choice for these older vehicles that predate the modern specifications.  We do our best, but we recognize there may be more than one answer.  The main thing we want to avoid is wrong choices that can damage engines.

What oil are you using in your collector car, and why?

A Fine Old Rolls Royce

LCLW9 - The red and black Wraith

1954 Rolls Royce Wraith LCLW9 at Robison Service

I first came to know this old Rolls in 1995, when Yankee Candle founder Mike Kittredge purchased it for $85,000 at the Barrett-Jackson auction.  We see fine Wraiths sell for more today, but eighteen years ago that bid price made this car the most expensive postwar Wraith sold to that date. 

I last saw this car in 2007.  At that time, it remained one of the nicest postwar Wraith limousines in existence.  The cosmetic restoration (which we didn't do) was stunning, and we'd built on that with a lot of mechanical work, including an engine overhaul and extensive chassis upgrades.  It had appeared in shows all over New England, including the prestigious events at Newport, Greenwich (Connecticut), Hildene (Manchester, Vermont) and Stowe, Vermont (The British Invasion.)

Unlike most show cars of this age the Wraith drove to most shows under its own power.  It would cruise all day at 50, and even stop and turn if you had plenty of room.  The inline six cylinder engine, vintage front end, and mechanical brakes were straight out of the 1930s.  Only the automatic transmission - sourced from General Motors - was current.  Rolls Royce was a strong believer in tradition.  Others described that trait as "bullheaded resistance to change."

Another tradition the Rolls Royce people developed was the use of the chassis number to describe a car.  They knew license plates changed, and bodies could be swapped, but the chassis number would always remain the same.  This particular vehicle left the factory carrying the number LCLW9.

When it wasn’t on the show circuit LCLW9 was the centerpiece of the Yankee Candle Car Museum in South Deerfield, Massachusetts.  The car was admired by thousands of museum visitors during those years. When the museum closed in 2002 Connecticut collector Don Colburn bought the car.  He'd owned a succession of Bentley Eight and Turbo R cars, and he decided it was time for an antique Rolls to compliment his more modern fleet.

He showed it at Newport in June of 2004, where it won the Rolls Royce class.  Unfortunately, Mr. Colburn died a few years later without showing the car again.  When his estate was liquidated we arranged its sale to Gull Wing Motors, and I lost track of it from there.

What’s left is its history . . .

In the fall of 1953, Broadway producer Blevins Davis decided he wanted a new Rolls Royce.  Mr. Davis was a former school teacher from Independence, Missouri who grew up with Harry Truman.  Davis achieved considerable success in Independence, building a large mansion that was the site of many events in the years before World War II. In 1946 Davis married Margaret Sawyer Hill, heir of James Jerome Hill, builder of the Great Northern Railway. When she died three years later he inherited nine million dollars.  Armed with that money, he became a well known patron of the arts, producing plays such as Porgy and Bess, Rhapsody, Skipper to God, and A Joy Forever.

Davis became interested in Rolls Royce cars after his marriage, and bought several in rapid succession.  He ordered this car on November 12, 1953. He requested an "all weather tourer" body, which today would be called a 4 door convertible. Fitted with side mount spare tire and the big lights, the original incarnation of this car must have looked like a Rolls-Royce tourer from the Silver Ghost era.

At that time Rolls Royce offered three models. The Silver Dawn was their smaller car. Though custom variants were available on special order, most Silver Dawn models were "standard steel saloons." By that, Rolls Royce meant the cars had standard assembly line steel sedan (saloon) bodies. The Silver Dawn was Rolls-Royce's first production line car.

The larger cars - the Silver Wraith and the Phantom - were quite different. These magnificent cars were referred to as "coach built," which meant Rolls-Royce built a running chassis consisting of a rolling frame and drive train. They delivered the chassis to a coach builder, who built a body. A vanished breed, these builders were descendants of the horse drawn carriage builder. These coachbuilders - Freestone & Webb, H.J. Mulliner - are largely forgotten today.

Using hardwood framing with sheet metal skins, these bodies were built one at a time, piece by piece. Every one was unique. Some cars were completely unique - built to a sketch drawn up between the buyer and builder. Others were built from a standard plan. Even those, though, differed subtly from car to car. Mr. Davis chose Freestone & Webb, one of the smaller builders, to produce the body for his Rolls-Royce.

Eleven months were required to produce this tourer, which was a "one of a kind".  Most of today's new car buyers are accustomed to picking options off a list.  Rolls Royce didn't do things that way.  There were no predefined options - just requests for customization - and the Company billed you for the work when done.  Here's how they defined this car (from the factory record)

Automatic gearbox x53-226.

Extension speaker to radio.                             Auto altimeter.

F.B.A. headlamps with yellow bulbs.            Bonnet locks.

Silver Dawn sealed beam headlamps. White wall tyres (removed).

Dunlop Guardian tyres (fitted).                      2 RD 7470 foglamps.

Spare wheel mounted right front wing.           2 wing mirrors.

Power operated windows and hood.              Left hand door locks.

Pyrene bumpers (no fog lamps).                    Bar type footrest.

Mascot made thief proof.                               Small G.B. plate.

Emergency window handle.                            Under car aerial.

Folding windscreen to rear.                             Hood Valve Key.

"Made In England" plate.                               2 rubber mats; 1 wool rug.

Extra cushion for driver seat (deleted).           Drawer under dash.

Frame to be specially strengthened per AFM/GB's instructions.

Blinker indicators (flasher to be supplied and fitted in U.S.A.).

Exide battery, installed 7/8/54                        Radio, serial #14 11559

On September 12, 1954, Rolls-Royce delivered the new car to Ferryfield Airport, located at Lydd, near Dungeness in Kent. The car was flown to Le Touquet, France, where Mr. Davis was waiting. With its exclusive casino and beaches, Le Touquet was a popular resort.  Its casino was said to be the setting for one of the early James Bond novels.

Mr. Davis paid $16,340 for the Wraith, plus air freight and tax.  That was enough money to buy a good house in those days, when a Cadillac Eldorado - one of the most expensive production cars in America - sold for $4,500 and a good used car was a few hundred bucks.

Presumably the tourer style was not to his liking, because only two months later, on November 11, he returned the car to Rolls-Royce to be re-bodied as a closed limousine. This time he chose H.J. Mulliner to build a body for the car. The rebodied car was returned to him in France on May 18, 1955 by chartered air transport.

In May of 1957, after two years of use, Mr Davis sold the car to his neighbor in Cannes – Col. Jack Trevor – author of The Trouble With Harry and a number of other popular books and screen plays.  Davis then moved to Peru, where he lived for the next decade.  Col. Trevor returned to England and brought the car with him that fall.  Trevor subsequently went bankrupt and the car was sold.  Sometime in the sixties or seventies the car made its way to America after, where it was shuffled from one owner to another and accumulated somewhat over 100,000 hard miles.   

The car next surfaces in public records when it was sent to auction in the fall of 1993.  The listing said, Dark Blue-black/blue leather; P100 headlamps, divider window; poor older repaint, cracking badly, otherwise all original including good interior.

The car was bought and restored by an un-named American collector.  He certainly restored its original grandeur from a cosmetic perspective.  The faded blue and black color scheme was replaced with red and black.  All the leather was replaced, and the wood was refinished.  Other than the change to the color, this car looked just the way it was re-bodied fifty years before.

Unfortunately the 1993 restoration was only skin deep.  When Mike Kittredge got the car he discovered the engine smoked and barely ran. The steering was so sloppy you'd be afraid to go over 25, and there was a hole in the floor where you stuck you boot down to assist the brakes. The worn out drivetrain had been beautifully cleaned and painted but nothing had been done to correct the decades of wear and neglect.  Fine black paint made for a nice museum piece, but Kittredge wanted a car he could drive.

That, of course, is my longstanding philosophy too.  I think there's something wrong with restorations that do not function as good as they look.

Over the next five years we remade this car in that image, going through the engine, transmission, suspension, brakes and running gear.  When we were done it drove better than when it was new, thanks to some modern improvements and careful tuning and balancing.  It was a big hit everywhere it went.  I can still remember gliding into cruise night at the local Burger King, and parking the massive Wraith next to a little T-bucket Ford from the 20s!

I wonder where LCLW9 is today?   If you know, drop us a line . . .

John Elder Robison is the general manager of J E Robison Service Company, independent restoration and repair specialists in Springfield, Massachusetts.  John is a longtime technical consultant to the RROC and other car clubs, and he’s owned and restored many of these fine vehicles.  Find him online at www.robisonservice.com or in the real world at 413-785-1665