Insurance Kubota Buyer Protection Plan

[PhysAssist]

Hi All,

Our 2011 B2320 will soon reach its 5 year anniversary of service, and be paid off, and at the same time our initial KBPP which was mandatory to cover it during the finance period will expire.

We aren't 100% sure whether we want to re-up with the KBPP or not, but we have been in contact with them and they want to lower the amount of coverage from the $15K and change [our purchase price] which they were originally covering it for down to $13K, which they estimated would cover the depreciation of its 5 years and 250-ish hours of lost "newness".

We are still thinking about just setting aside an amount equal to their premiums in an "untouchable" interest-bearing account rather than paying it out to them, but we still have a couple of weeks to figure that out.

My question for you is whether you think the approximate $2K decrease in value for depreciation is a fair figure.

I haven't seen any comparable used B23230's on CL or the swap sheet, so I have no idea where else to find out this information.

There isn't any "Blue Book" for tractor values, is there?

Thanks in advance,
Thomas

 

[Code54]

Just to mention it, you may want to check with your home owners policy and see what they can do. I added an inland marine rider for my machines and it was VERY reasonable, about ½ the Kubota insurance cost for equal coverage.
(It maybe totally different in NY vs WV)

 

[PhysAssist]

Just to mention it, you may want to check with your home owners policy and see what they can do. I added an inland marine rider for my machines and it was VERY reasonable, about ½ the Kubota insurance cost for equal coverage.
(It maybe totally different in NY vs WV)

Hi C54,

Thanks for the suggestion, we'll call them on Monday.

Thomas

 

[TMGT]

13k seems fair, most with just a loader are selling for around 12k around here from dealers.

 

[dragoneggs]

I agree... I think the depreciation of $2K is very fair. I would though check to see if the coverage still the same? When I researched the KTAC vs. my homeowners when I bought new, I thought the coverage (stupid mistakes, etc.) swayed me to the KTAC vs. homeowners. I do like the idea of putting away an 'untouchable' sum for repairs.

As I have always preached, I think you are a few dollars or more ahead if you don't accept extended warranties on all of your purchases of appliances, vehicles, etc. and take that money... bank it... and buy new or trade when something craps out. Best part is you can replace with the latest in tech, etc. Of course you need some discipline to save for a rainy day especially if you are cash poor. In general, insurance policies are money makers but not for you. On the other hand, there is comfort with insurance and you make a claim and don't have the shock of a full price bill... but it never seems to be all that satisfying if you do the math.

 

[Burtonbr]

I was surprised when I read what all the KTAC insurance covered, I didn't think I could come close to the coverage they offered for the money, I would like to keep it after next year when I pay off mine but if it is more expensive then I probably would choose to do without it.

 

[Fallon]

Homeowners coverage was going to be a LOT more than KTAC was for me when I checked. And it had a higher deductible as well as only covering it on my property & other things. KTAC covers my machine period. Doesn't matter where or what, it's covered, unlike homeowners.

All insurance is a gamble, both for you & the insurance company. Basically it comes down to can you afford to repair, replace or be without your machine if it gets trashed. If you can't, you probably need insurance.

 

[xring]

I recently bought a used B 2320 with 32 hours on it for 12K so 13k is in the ball park as a side note the loader valve failed on the unit and was initially quoted 1100 for part and 600 labor since it was out of warranty. After I contacted Kubota about such an early failure and found examples of same issue on this site Kubota covered the Part but I paid the labor about 550 dollars. So maybe the KBPP is worth it depending on the cost.

 

[PhysAssist]

Thanks everyone for the input/feedback, it has all been helpful.

DragonEgg: The KTAC/KBPP coverage for even stupidity also impressed me, that's the only reason we are even considering re-upping.

That said, everywhere I read about "extended warranties" [Consumer Reports, etc.] say to avoid them and sock the money you would have spent on the warranty away for the inevitable repairs that will eventually occur.

On the other hand, if you pay the premium, and the next day the tractor gets rolled over into the pond, they will fix or replace it less the $250 deductible, and the $203 put away in the bank wouldn't even touch the repair, much less replacement.

TMGT and xring: Thanks for the comparisons and comments. xring, didn't they offer you the KBPP?

It's great that they worked with you on that repair- see that's where having a premium put away wouldn't have helped much- and I doubt that my homeowner's insurance would've covered that either- but we're still waiting to hear from the agent re: what they offer.

We don't go off property with it, so the travel coverage is unnecessary.

What year is your B2320?

Burtonbr,

I know exactly what you meant- it really is global coverage.

As to the cost, I think that the original premium was about $575 or something such for the 5 years of the 0% interest finance perio, and now [with the coverage value decreased to 13K from 15K], they're quoting us $203 annually, which a lot more than the 30% increase some of my friends have told me they were quoted.

One of the things that I also have to consider is that when our dealer picked up our tractor for covered repairs, he threw in the oil and filter changes, as well as sharpening the mower blades.

He said that since we were going to have to pay the $250 deductible, we might as well get our money's worth out of it.

Fallon: Exactly!

I know the gamble involved in insurance, but unlike casinos and horse racing, the odds aren't published for us in advance, and the insurance companies will pretty consistently increase your premiums [or cancel your policy] if you win against them too often [though having damage or system failures occur to your tractor never feels like you're winning when it happens].

Shortly after we originally got the tractor and mower, we had one of the towers that supports the anti-scalp wheels get jammed up against a rock and get partially torn off.

That was our first covered repair, and it was re-welded and painted in-house at the dealership.

It was never quite right thereafter, because when they welded it back together, they didn't quite put it back to its original vertical position.

Flash forward to last weekend, and the same exact thing happened in a different area of our yard- but on the same tower.

So we have them coming to pick it up next week for that repair, for a broken rear marker light lens, for an intermittent starting problem which appears to be a safety interlock issue, and if he's willing to do it again, some service/routine maintenance items.

Thanks again,
Thomas

 

[xring]

xring, didn't they offer you the KBPP?

I purchased the tractor used from an individual. The dealer didn't mention KBPP when I was having the repairs made.
I'm not sure if they do it for second owners. The dealeship fired the sevice manager & the new one had all she could handle at the time
so maybe if available they didnt thing to offer it.


xring