Insurance Insurance...You have got to be kidding me!!!

   / Insurance...You have got to be kidding me!!! #1  

Bacffin

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Mar 1, 2010
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Littleton, Ma.
I just noticed in my quest for a new tractor that I have to buy insurance if I finance any of the purchase. Are there any work-a-rounds on this? Can I use my own insurance? Is there a formula for figuring out how much it will be through Kubota?

:mad: I just want a tractor :mad:

Thanks,
Bruce
 
   / Insurance...You have got to be kidding me!!! #2  
I understand where you're coming from Bruce, but you have to understand that their loaning you the money to buy the tractor, so their exposed to loss on the tractor until the last payment.

Looking at prior transactions with my local bank and CU, both have required proof of insurance for loans on my autos and RV. This is no different.

I've found that the insurance is quite reasonable in price, and the coverage is excellent. To summerize, the insurance does not cover abuse or normal wear and tear. Other then that, you're covered above the $250 deductable.
 
   / Insurance...You have got to be kidding me!!! #3  
A rough rule of thumb is that the Kubota insurance is a bit less than .1% (.001) per month of the purchase price. It is $250 deductible and could cover replacing the entire tractor with new. It covers the tractor off of the property as well.

All you need is proof of insurance rather than the Kubota insurance. Some homeowners' policies will suffice.
 
   / Insurance...You have got to be kidding me!!! #4  
This is a little different than the OP's issue, but I found that the typical homeowners policy only insures your tractor loss in very defined circumstances. If you park it in your garage and a tree falls on your garage, damaging your tractor...homeowners. If you park it outside and the tree damages nothing but your tractor...not covered. If you're using the tractor and anything happens to it...not covered. If you're trailering your tractor, your tractor NOR your trailer is covered by the auto insurance.

I took out a policy on my tractor for ~$250 per year. For a $250 deductible, it covers the tractor in nearly every circumstance. If I slip down a hill and ram a tree with the FEL, ripping it off the tractor...covered. On a trailer...covered. Does an endo off my driveway while clearing snow and bends an axle...covered.

I'm not a fan of insurance and don't pay for the "protection plan" on my TV or computer. But I've had my tractor in some tricky spots before and as dumb as I feel paying $10 a month for nothing, I'd feel MUCH dumber not having it insured and something major happen.

But I agree with others...NOBODY is going to loan you money for an object, using that object as collatoral for the loan, and not require insurance on the collatoral. You always have the option of NOT using the tractor as collatoral, but you'd either levy the purchase against your home or pay 10 times the interestfor an unsecured loan.

They're gonna git-cha whichever way you go.
 
   / Insurance...You have got to be kidding me!!! #5  
If you look at the different insurance availible (private insurance, iinland marine, homeowners,etc), you'll find Kubota's coverage is really great considering the price. The only thing that I don't like is that they willl not continue coverage beyond the financing period.
 
   / Insurance...You have got to be kidding me!!! #6  
I also think it is a good idea to have insurance on it. Mine has been paid off and I still feel insurance is needed in today's world. I probably would not have insurance on it if I were out in the middle of nowhere and the tractor just stayed on the one piece of ground with me and the house and it never left home.
 
   / Insurance...You have got to be kidding me!!!
  • Thread Starter
#7  
Thanks for the info. I'm coming down off my high horse now and going into reality...again. I am only going to finance about 5-6K so it comes at me wrong. You are all correct as to "why". And yes, it is cheap considering the risks that can become involved.

~Bruce
 
   / Insurance...You have got to be kidding me!!! #8  
I just noticed in my quest for a new tractor that I have to buy insurance if I finance any of the purchase. Are there any work-a-rounds on this? Can I use my own insurance? Is there a formula for figuring out how much it will be through Kubota?

:mad: I just want a tractor :mad:

Thanks,
Bruce
If you've never noticed this before you must have never financed a home car or any other big ticket item.
 
   / Insurance...You have got to be kidding me!!! #9  
If you look at the different insurance availible (private insurance, iinland marine, homeowners,etc), you'll find Kubota's coverage is really great considering the price. The only thing that I don't like is that they willl not continue coverage beyond the financing period.

I have Kubota insurance on a tractor I paid cash for. You can call KTAC and get insurance on Kubotas that are not financed.
 
   / Insurance...You have got to be kidding me!!! #10  
I probably would not have insurance on it if I were out in the middle of nowhere and the tractor just stayed on the one piece of ground with me and the house and it never left home.
Who pays for / loose if it's solen?
 
 
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