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

Coming Soon - New standards for describing motor oil on invoices

Author's note:  This is an example of the sort of knowledge today's auto technician needs to possess.  I'm very proud to say we are training the technicians of tomorrow - right in the Robison Service Auto Complex - through the most extraordinary special ed high school - TCS Automotive Program  Read more about the program here   Check it out, next time you are in for service.

*

The U.S. Commerce Department’s National Institute of Standards and Technology has made some new recommendations for motor oil information on invoices. These uniform standards direct us to list SAE oil ratings, brand and weight on customer invoices.  Twenty states automatically adopted the standards, and we at Robison Service are going beyond the requirement effective immediately.

For years I have been writing and talking about the importance of correct oil.  Most of the car lines we work on require special synthetic oil formulations, and it seems like every one is different.   Yet most motorists remain totally oblivious to the different requirements and specifications.  What's worse is that many service professionals are not a whole lot more knowledgeable.  "Oil is oil," they say, but they are wrong.

Even saying “I want synthetic oil,” isn’t enough.  You must specify the right synthetic oil because it comes in dozens of grades for different cars and trucks. Choosing the wrong oil can be harmful – even fatal – to your engine.  We’ve see more than one motor destroyed by incorrect oil choice.

The new government standards became effective July 1, 2013, for states that approve, and are outlined in the Uniform Regulation for the Method of Sale of Commodities.  By requiring repair shops to spell out what they use, the hope is that they will use the correct stuff.  Will that happen?  I don't know, but it's a step in the right direction.

At Robison Service, we’ve always told clients the brand and type of oil we install.  For us, using the best possible lubricants has always been a source of pride.  In years past, our invoice for a Mercedes might have said, Mobil 1 0-40, 9 quarts.  Mobil 1 0-40 is the particular type of oil specified for many Mercedes cars and that description told consumers they were getting the right stuff for their Benz.

Now our invoice is a little more detailed.  Today that same line would read Mobil 1 ACEA A3/B3, A3/B4 API SN, SM, SL 0-40 synthetic oil MB229.3/229.5 VW 502 Porsche A40 BMW Longlife 01, 9 quarts.

The ACEA and API codes are the industry standard ratings for that particular oil.  The MB, BMW, VW and Porsche codes mean this oil was tested and approved by those manufacturers. Decoded, they tell you what cars Mobil 1 040 is right for.  We stock nine different blends of Mobil 1, each for a different application.  There are also a few cars that don’t use Mobil 1 – like the newest M-series BMW.  We have even more exotic oils in stock for them.

I use the word "exotic" because few oils meet the specifications of high end carmakers.  Walk the aisles of your local mass merchandiser.  Read the labels on the backs of the fifty-some different oils they should have in stock.  You will be lucky to find one single product that meets the Mercedes 229 spec, and you may not find any!  The same will be true for the VW or BMW requirements.   If you install an oil that does not meet specs for your car you are taking a big risk.

Every oil has its own unique description.  A BMW M3, a Mercedes E350 and a Range Rover all need synthetic oils, but the specific requirements for each car are different.  The result: we stock three different synthetics for those cars alone, one for each make and model.  And that's just motor oil for three sample vehicles - there is just as much variation in transmission fluid, coolant, and every other fluid in a modern automobile. A shop like ours has a lot of different fluids in stock!  

Oil technology is complex, and engines can be damaged when the wrong oil is used.  The requirement for a detailed description on the service bills allows motorists to look and see if the correct lubricant was used.

A 2003 Mercedes engine damaged by using the wrong oil

There are quite a few benefits to using the right fluids in a modern car.  The biggest benefit is that the use of correct oils and regular service can virtually eliminate wear.  Take a look at these two images, showing the same area on two engines; one had the wrong oil, and not enough changes.  The other one used the correct Mobil 1, changed every 7,500 miles from new.   As you can see, one motor is junk while the other looks as clean as the day it left the factory.

This 100,000 mile engine looks new, thanks to good service and the right oil

You will always get the right fluids at Robison Service, and with any luck, this change may encourage others to follow that lead.

John Elder Robison is a NY Times bestselling author and the founder of J E Robsion Service of Springfield, MA.  Robison Service is a long established Bosch car service specialist, with expertise in BMW, Jaguar, Land Rover, Mercedes, Porsche, and Rolls Royce/Bentley motorcars. Find them online atwww.robisonservice.com or in the real world at 413-785-1665

The Evolution of Maintenance

Over the past thirty years, car maintenance has changed dramatically.  Since most owners of collector cars are older than 45, this means that they have seen this transformation in their driving lifetime.  

Oil changes have gone from every three months or 3,000 miles to 7,500 miles or more, and one to two years.  Cars needed new spark plugs every 15,000 miles; today’s cars go 60,000 or even 100,000 miles on a set of plugs.

What do the new maintenance guidelines mean for old cars today?   Do they apply to vintage cars, or only to new cars?  Let’s look at oil.  BMW says its OK to drive a new 5-Series 15,000 miles before changing the oil because they use a special long-life formulation.  What does that mean for an owner of a 1983 5-Series?  Can he fill his car with today’s super-duper BMW oil and get 15,000 miles on a change?

In most cases, the answer is NO.  Maintenance requirements for new cars do not translate retroactively to older cars simply because thinking has changed and fluids and parts have evolved.

Older cars were made in a time of looser tolerances.  That’s evident when you look at the number of adjustments on a vintage car.  Fenders – to choose one example - have slotted holes so you can move them for alignment. Everything is adjustable.   New cars are the opposite – very little is adjustable.   Parts are machined precisely and fit exactly as intended.  At least they’re supposed to!

The same situation holds true in the engine.  Where a 2012 engine might have bearing clearances of 1.5 thousandths of an inch, a 1952 car might have three or five times that much clearance.  Some is a result of looser production tolerances when new, and some the result of wear and age.  What does that mean?  It means the older engine will require a thicker oil to prevent metal-on-metal galling.  It means the long-life attributes of the new oil are not the determining factor in its suitability for use in an old car – viscosity is!  And the new oil is in fact the wrong viscosity for the old car.

So the use of oil made for a 2012 BMW in a thirty or forty-year-old BMW might actually be destructive.   What about going the other way, you ask?  The use of the older car’s thicker oil in a new BMW could result in excess pressure, and damage to engine components that were not even invented in the 1970s.  Furthermore, the absence of the long-life additives would contribute to premature failure. 

When we consider how long an oil will last, we look at two things:  How rugged is the oil, and how fast will it get degraded by combustion byproducts as the engine runs?   Oil that has the weight rating for old cars does not have the long-life wear additives needed for new engines.  That’s one basic fact.  Old engines generated more waste product when they ran, right from day one.   That’s the second key fact.  We all know old engines polluted more.  What many people don’t realize is that some of that pollution ends up in the engine’s crankcase, polluting the oil

What that means is this:  The life of oil in a vintage car is usually determined by contamination of the oil, either from sludge in the motor or excess combustion byproducts.  The use of long life oil will not help that situation; indeed the more aggressive detergents may make things worse!

For that reason I suggest a change interval of once a season or every 3,000 miles on your collector vehicle.  And use the right weight for its age.

What about the other fluids?

Brake fluid absorbs moisture from the air.  In most climates, it is ready to be changed after three years.  Failure to change brake fluid leads to rusting of the internal brake parts and costly repairs.  So I encourage you to change it semi-annually.

Some coolants do last longer, and they may be used in older cars.  BMW and Mercedes coolants – for example – are backward compatible with most older models.  But check the labels to be sure.

Modern transmission and gear oils will last longer, but again contamination is often the enemy in an older car.  Since usage varies so widely there is no one recommendation for changing these oils, but in any case I would not run them longer than 6-8 years, even in a low mileage show car.

Spark plug life in a vintage car depends mostly on engine wear.  Pull your plugs annually if possible, and check for fouling.  Often only one cylinder will foul, and you may choose to replace just the one plug.  There are old cars that never fould plugs, and others that do it every second tank of gas.  Know your vehicle. 

Most old cars are not driven enough to ever clog air filter.   Fuel filters are another matter.  I suggest fitting a modern filter to your old car because they are so much more effective, and change it every 3-4 years as you can’t see inside, and fuel can carry invisible contaminants that will collect in the filter. 

Now it’s time to take this information and run with it, because spring is here, and another driving season is upon us!  Good luck!

John Elder Robison is the General Manager of JE Robison Service of Springfield, Massachusetts.  Robison Service specializes in repair and restoration of BMW, Jaguar, Land Rover, Mercedes, and Rolls Royce/Bentley motorcars.

Audi Timing Belts

If you have a later model Audi, and you’re closing in on 100,000 miles you might be wondering why that timing belt change you’re looking at is so expensive, and what it involves.

The maintenance schedule simply says “replace timing belt at 105,000 miles” for most models.  They don’t really list any other parts, or talk about what’s involved.  There are two ways you can approach that work.

The first method is to slide the front bumper forward for access, take the covers off the front of the motor, and slip a new timing belt into place.  You might change a roller or two, and swap the serpentine belts, but the rest of the car remains untouched.

That’s the easiest job to do.  A skilled tech can bang the work out in a day.  But is that the best job for you as an owner?

If you plan to trade the car next month, it may seem like the way to go.  But if you plan on keeping your Audi another 100,000 miles, or you plan to pass it on to a kid or friend or anyone you care about, a different approach is probably called for.

At Robison Service, we do a lot of work for enthusiasts – people who ask a lot of their cars and really care about and for them.  Over time we’ve learned that the best repairs are the ones that last.  Often that means doing more work, not less, when tackling a big job.  Anytime we do a big job, we ask ourselves, “What else is going to give trouble soon,” and we address those items while the car is apart and it’s easy.  After all, it’s always smarter to spend two hundred dollars today, if it saves six hundred dollars next year. 

If you simply slap a timing belt onto a 100,000-mile Audi you can be assured that the job will not last another 100,000 miles.  More than likely, you will be doing the work over again, with additional repairs, within three years.  Why?  Because the timing belt is just one piece of a complex system, and the other pieces of the system can and will fail too, even though they are not on the maintenance schedule.

For example, the water pump is driven by the timing belt.  Most Audi water pumps make it to 100k miles.  I’ve never seen one last 200k.  The water pump is behind the timing belt, so its replacement calls for doing the timing belt all over again.  Installing a water pump during the timing belt job will cost a few hundred dollars, in most cases.  Replacing it two years later (and doing the timing belt and other work over again)  may well cost fifteen hundred more dollars, when everything is tallied up.

The timing belt is guided and tensioned by a number of rollers and springs, all of which wear out.  Those parts won’t last till 200k either, and if they fail, the timing belt can come off, leading to thousands of dollars in preventable engine damage.

All cars leak oil and coolant when they get old.  Audis are no exception.  The thing is, you can fix many of those leaks easily when the engine is apart.  A few extra hours may get rid of those annoying drips.

And drips can be more than an annoyance.  When oil or coolant leaks onto the exhaust, it’s a fire hazard.  When oil gets hot in summer, it makes an acrid stink that can be drawn inside the car when the AC is running.  Those are a few of the good reasons to fix your leaks while the motor is open.

What about everything else under the hood?  I believe a good technician should look the whole engine bay over carefully when doing any big job.  Who knows what’s about to fail?  There may be cracked hoses, leaking AC lines, or even a corroded and failing battery.  The time we open the hood for work may well be the only time anyone looks at those things until they fail.

As much as people hate to spend money, it’s easier and cheaper to change a battery when your car is already in the shop than it will be when it dies, in an empty parking lot, some cold winter night.  That idea exemplifies the difference in our philosophy.  We believe in identifying what may go wrong tomorrow, and fixing it while we do today's repair.  Other people believe is doing just what the schedule says, and no more.  There's a place for both ways of thinking; I believe our philosophy is more suited to long term ownership.

We apply this same preventative care approach to every car we service.  Sometimes it can surprise people.  They go to the Shop A and hear about two problems.  They come to us and we show them ten more things.  That doesn't make the first guy wrong - it just means we have a different approach and I like to think we are more through.

Robison Service is a four-star Bosch Car Service center.  We service Audi, BMW, Jaguar, Mercedes, Land Rover, Porsche, and Rolls Royce-Bentley automobiles.   We’re located right off exit 4 of I-291 in Springfield, Massachusetts.  Visit us online, or stop by the shop.  We're here from 8-5 Monday through Friday.   Phone us at 413-785-1665 

Some thoughts on Right to Repair

You may have read that Massachusetts is voting this June 28 on a piece of legislation called Right to Repair (R2R) which is touted as a law that will force carmakers to give independent repair shops (the so-called little guys) the same access to car repair data as franchised dealers.

The claim is that this law will save consumers tons of money while giving them a newfound freedom of choice. Unfortunately, it won’t.

Here’s why that law is a waste of time and money.

Right to Repair is a proposed law to give small shops access to repair information. Giving access implies that access is denied today. It isn’t.

Small repair shops already have equal access to service information. I know that because I own a shop and I access that info every day. The National Auto Service Task Force was established almost ten years ago in response to widespread consumer complaints about access to service data and test tools. Thanks to NASTF efforts and Federal legislation, any shop can log onto Ford or BMW or any other carmaker’s database and buy daily, weekly, or monthly subscriptions to service data; the very same data their dealers have.

The only data that is restricted on those websites relates to vehicle security and the coding of keys. That same data is restricted to dealer technicians to prevent vehicle theft. It’s sometimes a hassle, but the carmakers are required to do that for motorist’s own security. Would you want any schmuck to be able to order keys for your car off the web? I thought not.

There was a time when carmakers did hold back information and it was very frustrating. They also restricted access to their proprietary service tools. All that changed thanks to the Federal government stepping in about ten years ago. In my opinion, the information access problem is essentially solved. The problems that remain are being worked out cooperatively by the NASTF, with no need for new state laws.

The proposed R2R law purports to ensure customers can choose where to get their cars fixed. Customers have always had that right. The smarter question to ask is, Who is qualified to fix your car? If you have a high-end car like we work on, your choices are indeed limited. However, you are not limited by “right to repair” issues. You are limited because there are not many people who are both qualified and possessed of the specialized tools to properly service a late-model Mercedes, BMW, or Land Rover.

That brings us to the biggest issue in the aftermarket auto service industry: technician and shop competence. I can’t tell you how many times I hear xxx ripped me off, or xxx screwed me, or xxx fixed my car and it’s worse than before. 99% of those complaints stem from incompetence, in my experience. Only a tiny fraction results from dishonesty or malice.

At Robison Service everyone in the shop attends brand and system specific training every year to stay current. We would be lost without that training and the backup of tech support from Bosch and our test system manufacturers. But training is costly, and few independent shops do it. Dealers have to do it to keep their franchise. We have to do it because we’re committed to being the best.

The second (related) issue is tooling. The days of fixing 99% of the cars with a box of hand tools are long gone. It’s an electronic world, and you’ll need ten to twenty grand for the diagnostic tools for any high-end car, if you want to have dealer-level capability. Otherwise, you’ll be telling customers you can’t do this, or that. You will never hear we can’t do that, you have to go to the dealer at Robison Service. But that certainty comes at high cost; hundreds of thousands invested in tooling and more every year.

Luckily, the tools are cheaper for ordinary cars, and training is more available. Even still few independents avail themselves of it.

Training and tooling are the two principal reasons independents can’t fix cars properly. Both those things are available, at the same cost a dealer would pay. The playing field is already level, thanks to Federal legislation passed in the 1996-2002 time frame.

Another claim is that drivers will be protected because they will get notice of recalls and service bulletins. Once again, that is a problem that’s long been solved. Every manufacturer service website provides that service when you input a VIN. In addition, Alldata and Mitchell (the two principal aftermarket service data suppliers) offer the same thing. All you have to do is buy the subscription. Like us, and every other properly equipped shop or dealership.

Finally, they claim this bill will protect jobs. How? We are not losing our jobs now. This bill will not cause more cars to be fixed in Massachusetts. The problem with jobs in auto service is that we have sky-high unemployment where I live and work. Many of our customers are struggling to stay above water, and car repair is a low priority. That reality drives service workflow for most shops.

I don’t think passage of this bill would hurt me, or my shop. However, it certainly won’t help. What it represents is a waste of time, and political posturing, when we have real and pressing problems to solve elsewhere. Let’s drop this and spend time solving our employment and housing crises. Bills like this are nothing but red herrings to draw people from the real issues.

Where did the $39 BMW oil change go?

I grew up thinking of oil changes as inexpensive, quick services. Yet the simplest of services on a late model Mercedes or BMW seems to cost $150 or $200. How come?

The first part of the explanation lies in the oil itself. In recent years the European carmakers have extracted more and more performance from less and less fuel using sophisticated technologies. Anyone who’s compared a 2008 BMW 5-series to a 533 from the mid 1980s can’t help but notice the difference.

The car designers have pushed the limits of engine technology to get today’s performance. That means engines run hotter, and there’s more stress on the internal parts. Engines now contain plastics and exotic metals, which need different kinds of protection. And finally the service intervals are far longer, so the oil in today’s BMW has to last several times as long as the oil we installed 25 years ago.

The result of that change is a much higher performing car that needs far higher performance lubricants than cars of yesterday. And the costs of getting it wrong are high . . . an engine that fails from sludge buildup or other lubrication failure can easily cost over $15,000 to replace.

Important as it is, engine oil or “motor oil” is totally misunderstood by most technicians and consumers. People glance in their owner’s books and see that their car takes 5-30 oil. They don’t even know what 5-30 refers to, so they assume any 5-30 oil will meet their needs. Nothing could be farther from the truth.

In fact, all non-synthetic and most synthetic SAE 5W-30 oil products available in North America fail to provide adequate protection for North American BMW and Mercedes cars that require a 5W-30 viscosity oil.

For example, both Castrol Syntec 5W-30 and Mobil 1 5W-30 both fail to meet BMW minimum requirements. Castrol and Mobil both make products that are suitable for BMW and Mercedes engines but they are not readily available in North America. Even respected brands like Amsoil and Redline fail to offer products that are approved by BMW. In the case of Amsoil and Redline, SOME of their products will serve well but are not technically approved and do have the potential to create problems under certain conditions.

Due to the widespread ignorance of oil service ratings in North America, BMW reduces the minimum requirements for cars sold on this continent. The Genuine BMW 5W-30 oil meets the reduced "LL-98" requirements. LL-98 is the long life oil standard that BMW established in 1998. That standard was superseded by a tougher one in 2001, BMW LL-01. Robison Service and other good BMW specialty shops use the higher grade "LL-01" approved oil for improved protection. These products will improve protection and improve the effectiveness of the BMW oil monitor system.

Mercedes has similar standards for its cars, and for that matter so do Porsche, Volvo, VW, Audi and most other high end carmakers. Ignoring the carmaker requirements is to court disaster. Having said that, I see that very thing happen all the time. People buy inexpensive oils in the mistaken belief that all oil is the same, and they feel good because they saved $50 on an oil service. But what happens when the engine fails and they face a $10,000 repair bill? That’s truly an expensive lesson.

Oil is not the only component of an “oil service.” There is also the filter. At Robison Service we use genuine filters and filters from Bosch and Mann, two of the principal suppliers to European carmakers. These filters cost a bit more, but once again they meet the carmakers requirements. A filter that clogs and causes an expensive failure isn’t much of a savings . . .

Finally, a proper service includes reading and resetting the maintenance system. All late model BMW and Mercedes cars have flexible service computers, where the car keeps track of what’s due and when. You may think the car just needs an oil change, but the maintenance system may be asking for a brake fluid change and new cabin filters too. Once again, there can be serious consequences if the recommended services are ignored.

Dealers and properly equipped independents will have the necessary electronic systems to talk to the car’s service computer. It’s very important to do this, and to scan for faults, because your car’s computer is all that stands between you and a breakdown in many cases. And if you ignore a stored fault (which may be invisible from the dashboard) you may not get any other warning before the car fails.

Finally, a proper service includes a careful visual inspection by a technician that’s familiar with the marquee. You can’t find that anywhere except at a dealer or specialist.

That’s why we don’t call these services oil changes anymore. We call them small services. BMW separates oil service from inspection service. Mercedes Benz A Service is their small service. We do that because they always include an oil change but they often include additional work as dictated by the car or our inspection.