I read that Kubota will require insurance if I finance part of the B2710 I plan on purchasing. The dealer said nothing about it. Is it true that I will have to get insurance on the tractor like you do for a car loan? I was assuming that the tractor would be covered under my homeowners insurance.
Financing Insurance?
- Thread starter gusg
- Start date
cstocks
Platinum Member
New Holland required me to carry insurance when I financed part of the cost of my tractor last year. I bought the policy they offered... I don't remember how much it was but seems it was not very much. The policy only covered the tractor.
Bird
Epic Contributor
Yep, it will have to be insured, but your insurance agent can write separate policy or possibly cover in with your homeowner's policy or you can get the insurance from Kubota Credit Corporation along with the financing.
JRP
Platinum Member
Yes, and as I recall the insurance is expensive. I think it's one of those don't pay high interest rates but you'll make it up to us with our insurance price plans. Of course they also put a lein on your tractor. I found a group in Texas called Farm bureo (sp?) insurance. They insured my tractor for only $60 per year. Also, as I remember, the kubota policy has a sentence that said I agree to not drive the tractor on roads. Rediculous. Of course at times I would have to drive the tractor on roads. I chose to borrow from my 401K policy and pay myself interest instead of Kubots financing.
Take time to look at your options. I think I saved about $650 per year on insurance. Ask some local farmers where they get insurance.
JRPoux
Take time to look at your options. I think I saved about $650 per year on insurance. Ask some local farmers where they get insurance.
JRPoux
Gary_in_Indiana
Elite Member
- Joined
- Apr 22, 2002
- Messages
- 3,388
- Location
- Fort Wayne, IN
- Tractor
- John Deere 4200 MFWD HST w/ JD 420 FEL w/ 61" loader bucket & toothbar & JD 37 BH w/ 12" bucket
Any lender will want their collateral insured. It's not "financing insurance" so much as it is comprehensive and collision insurance just like that any lender would require on your car or truck that's financed.
"Financing insurance" might be something like credit life, accident and health insurance on your loan so that if you die, it will be paid off by the insurer or if you're disabled either temporarily or permanently the payments will be made for you during that time. By the way, CLA&H is one of the absolute WORST buys you can make in most cases.
If you think you want that kind of coverage, contact your insurance agent and see what they can do for you. You'll not only save yourself a bundle in almost all instances, but you won't have to pay the premium for the entire term of the loan all up front or have it bundled into the loan where you get to pay interest on top of it.
Well, I'm climbing off my soapbox now. /w3tcompact/icons/blush.gif Sorry, but the way that's done is just a pet peeve of mine. /w3tcompact/icons/smile.gif
"Financing insurance" might be something like credit life, accident and health insurance on your loan so that if you die, it will be paid off by the insurer or if you're disabled either temporarily or permanently the payments will be made for you during that time. By the way, CLA&H is one of the absolute WORST buys you can make in most cases.
If you think you want that kind of coverage, contact your insurance agent and see what they can do for you. You'll not only save yourself a bundle in almost all instances, but you won't have to pay the premium for the entire term of the loan all up front or have it bundled into the loan where you get to pay interest on top of it.
Well, I'm climbing off my soapbox now. /w3tcompact/icons/blush.gif Sorry, but the way that's done is just a pet peeve of mine. /w3tcompact/icons/smile.gif
Soundguy
Old Timer
- Joined
- Mar 11, 2002
- Messages
- 52,238
- Location
- Central florida
- Tractor
- RK 55HC,ym1700, NH7610S, Ford 8N, 2N, NAA, 660, 850 x2, 541, 950, 941D, 951, 2000, 3000, 4000, 4600, 5000, 740, IH 'C' 'H', CUB, John Deere 'B', allis 'G', case VAC
I purchased a tractor from NH, 3yr term, and took the insurance they offered.. it was only something like 145.00 for the 3 years. Then again, I only financed 8500.
Soundguy
Soundguy
Gary_in_Indiana
Elite Member
- Joined
- Apr 22, 2002
- Messages
- 3,388
- Location
- Fort Wayne, IN
- Tractor
- John Deere 4200 MFWD HST w/ JD 420 FEL w/ 61" loader bucket & toothbar & JD 37 BH w/ 12" bucket
I'd be curious to know what a rider on your homeowner's policy for the same $8500 would have added. I'm sure you wouldn't have had to pay that all up front for the three year term.
Remember, too, that if you're just covering the loan balance, it's declining every month. In your example after year one your balance is only around $6,100 and at the end of year two it's around $3,300.
Note: For those intent on checking my math, I estimated a $300.00/month payment on $8,500 over 36 months which figures out to about 16.3% APR.
Remember, too, that if you're just covering the loan balance, it's declining every month. In your example after year one your balance is only around $6,100 and at the end of year two it's around $3,300.
Note: For those intent on checking my math, I estimated a $300.00/month payment on $8,500 over 36 months which figures out to about 16.3% APR.
rancar
Veteran Member
- Joined
- Jan 26, 2002
- Messages
- 1,726
- Location
- Cambridge, New York
- Tractor
- JD425 lawn tractor; JD4710 CUT; JD JX75 Walk Behind
I needed to buy financing insurance when I bought my 4710 in order to cover JD's investment in the tractor in case something ever went wrong....such as burned in barn fire, stolen, sank in pond, whatever. They wouldn't finance without the extra insurance coverage. I could have purchased the insurance anywhere but I went through JD Credit. Paid about $200 over the 5-year loan period. Thought it was reasonable enough and I'm paying that off on the installment plan over 5 years.