Tractor Insurance questions

[TractorsAreGood]

Hello,
I’m looking to purchase a new tractor and I will be using the low financing Kubota is offering, therefore, I need insurance on the tractor. I talked to my agent and he is saying the tractor is covered under my home owners policy as long as the tractor remains on my property. However, if I trailer the tractor I either have to get a hauling policy which is very expensive (thousands) or pick up a commercial policy. I have one quote for $1500 /forums/images/graemlins/frown.gif a year for the commercial policy, which seems ridiculous to me considering the tractor will only leave the property a couple of times a year. These premiums add a lot of cost to the tractor. Kubota offers a reasonable insurance policy for about $20 a month, but it only covers the loan amount . Since the loan will be considerably less than the tractor value this isn’t a viable option for me.

I’m curious to what other people are doing. Are there any reasonable alternatives besides not leaving the property?

Thanks

 

[icat]

I went with the Kubota insurance. Simple, easy, and covers the loss of the tractor. I can always buy another unit if this one is lost. And while it's true that I would lose my equity, I'm fairly certain that the tractor isn't going anywhere to begin with. I guess I'm saying it's a gamble I'm willing to take.

 

[Docsknotinn]

I have seen this same question posed many times and places. the loan insurance offered by JD or Kubota is OK if thats your only option.This will vary wildly with the state, county you reside and your Insurance company, claims history and driveing record. The first thing to see is if you can schedule the item on your homeowners Ins for all perils. I use Citizens and they do. All perils replacement cost on my machine is $50 per year. All state does this as well. Commercial policies are just that and should not be confused with a homeowner moveing it say from your primary residence to your cabin. If you are going to any one elses property to work, mom, dad, brother in law etc most Insurance companys now consider that commercial due to liability issues. Shop around. One problem nation wide with Insurance companys now is you wind up talking to some 18 year old CSR who doesn't know up from down and dispenses advice. Shop around, thats the best advice I know of.

 

[hfd376]

Welcome to the forums! If you finance your tractor, it may be less headache to go with insurance from the manuf. if you finance thru them. If not, maybe thru the bank. And the gentleman is right about who you talk to. I have a renters policy, and was told that the tractor would be covered. When he asked of the value of the tractor he said it would take an additional rider. Well, the rider was over three times of and in addition to the price of the original policy.

I pushed him harder about an INLAND AND MARINE (key words)
policy. As it turns out, the renters policy does cover the value of the tractor on property. Since I trailer it from time to time, The agent found an I/M policy that cover ALL PERILS ( another key word) off property, that was a mere $3. and some change per thousand.

I chose a farm bureau for insurance, since they would have been more knowledgeable with tractors, but I'm in a more suburban area so he had to get info from a rural agent.

Doug

 

[MadReferee]

This question was discussed just a few weeks ago. Here is a link
insurance questions

I have a commercial inland marine policy which covers everything from rollover to hiring a tow truck and/or dozer to recover the tractor from anywhere. It also covers rental of a replacement and is valid on or off my property. Cost was $15 per thousand of insured value.

There is also an agricultural inland marine poilcy that might be cheaper but covers less.

Talk to your insurance agent. If he has never heard of these types of policies then get another agent.

Homeowners all risk insurance will most likely cover only equivalent value replacement only while on your property and not cover other things like paying for recovery from the back forty.

 

[Docsknotinn]

All perils is definately key if you are towing at all. The liability coverage comes from the vehicle towing it so if you are pulling a trailer make darn sure you have adequite liability in case that trailer comes off and kills some one. Stranger things have happened. I would think 300k minimum. This is really not much more $. One thing about the manufactures Ins. You can only get it as long as you are in debt to them as far as I know. If you pay off quickly that wont help you out much. As far as bad advice I actually had a few "agents" tell me all I had to do was insure the trailer and then anything on it was insured. yeah right for $8 bucks a year what company is going to go broke first paying hige claims on a $8 policy. It does take a little patience and more than a few phone calls, you might even need to switch your home owners and auto to a new company.

 

[Docsknotinn]

You also might get more specific info on your state if you filled out your profile or posted your home state.