Insurance

[jwcinpk]

Just wondering what does the insurance we are all forced to buy when we finance a tractor cover?
I'm told it's physical damage insurance, but exactly what physical damage would it cover?

[Farmerboy]

I rode my tractor over a 10' drop off in June - sprung the arms on the loader, buckled the hood, smashed the roll bar, etc. - did about $7,000 of damage. Insurance paid to have the unit picked up and completely fixed. All I owed was the $500 deductible. While working with my local dealer, some guy had a log roll over the back of the bucket and smash his hood - insurance paid to fix.

Also, you have to be aware that the insurance only covers the "as purchased" value of the tractor/implements. For example, if you purchased a loader with your tractor, your dealer probably gave you some sort of discount off of list price for the loader. So, if the loader costs $4K but the purchase agreement reflects $3K, the insurance is only for $3K. This comes in play if something is "totaled" - you'll end up paying the difference to get the exact same hardware. One more thing, the insurance company will adjust the value of the "totaled" equipment to account for depreciation.

[LAWALLSTRACTOR]

The insurance covered vandalism damage for one of my customers. The dash was smashed, hydraulic hoses cut, boots cut , and the seat was cut. The insurance covered all but the deductable.

[jwcinpk]

And the dedudctible is usually $500?

[wallace]

Just so everyone is clear. You are not forced to take the insurance.
You are required to have insurance on the equipment if financed.
You can provide your own insurance or take what is offered but you must have insurance for the term of the loan.

I think Agricredit has a discreption of what it is all about on their web page.

[Erik_in_Hoyt]

how much does agricredit insurance cost?

[LAWALLSTRACTOR]

Originally Posted by Erik_in_Hoyt

how much does agricredit insurance cost?

It depends on where you are from, as your state insurance laws have an effect on the insurance pricing, and it depends on the amount and length of your Agricredit loan.

[DonWorrell]

Originally Posted by Erik_in_Hoyt

how much does agricredit insurance cost?

I can't remember exact numbers but I can say after I got a few quotes I got cheaper and as good of insurance from my local Farm Bureau as I could anywhere even considering Agricredit. I have my 3325 insured for $8,800 and it cost me $88.00 per year. Price hasn't change in almost three years.

I bought my tractor when Mahindra had $500.00 rebate or 0% for 36 months. Well at 0% it was better for me to use Argicredits money than my own. I normally don't carry insurance on my tractors.

Don

[Erik_in_Hoyt]

Don,
thanks - I had forgotten about Farm Bureau.
We had looked at them a few years back and they couldn't compete with AmFam for the bundled house, cars, and construction loan, but it may be time to go look again.

thanks!

[psj12]

Speaking of insurance, I cannot get my property in Oklahoma covered by anyone. State Farm will not cover it because I do not live on it even though my brother lives across the road from it. I live in Md. and my State farm homeowners will not cover it although they (Md. agent) did sell me insurance on the RV trailer I keep in OK. My auto insurance State Farm aget in OK won't cover it even though I keep my truck (which he does cover) in the barn. I have homeowners, auto and RV insurance through State farm.

I keep a good deal of stuff in the metal barn including my tractor and lots of tools. Does anyone know who would sell me insurance against theft, fire and storm damage?