Insurance KTAC Insurance: who's read the fine print?

[wingizzmo]

Yup. You can get the same policy out the door paying cash or financing. Different policy than you can get the day after you buy it. Full machine replacement policy for new, cash value for policies on used machines.

Fallon you do not get the same policy out the door paying cash I Talked to the insurance co directly if you want replacement cost for a tractor you have to finance. On top of that if you pay it off say in 3 years the policy ends at the 3-year mark

 

[mljenkins]

KTAC,

I never received a policy on the tractor and insurance policy I bought several months ago.
Should I call the dealer, or just call ktac?

I called ktac as I was in the same boat. They emailed me the signed policy certificate and the policy information to me. They were very nice to deal with.

 

[mljenkins]

Fallon you do not get the same policy out the door paying cash I Talked to the insurance co directly if you want replacement cost for a tractor you have to finance. On top of that if you pay it off say in 3 years the policy ends at the 3-year mark

Interesting I may call and ask about this before deciding to payoff the tractor early. If that’s the case it would heavily influence my decision, although I doubt I do since it has a 0% rate. Is there wording in the policy that says this? I honestly haven’t read mine in detail yet as I just got it a week ago (after having it since Dec 2017 but no one gave me paperwork).

 

[RickB]

Interesting I may call and ask about this before deciding to payoff the tractor early. If that’s the case it would heavily influence my decision, although I doubt I do since it has a 0% rate. Is there wording in the policy that says this? I honestly haven’t read mine in detail yet as I just got it a week ago (after having it since Dec 2017 but no one gave me paperwork).

KTAC FAQ page indicates the policy is cancelled in the event the loan is paid off early. A new policy can be purchased but no details are given.

 

[ZTMAN]

The KTAC website gives a number:

Q- What happens if I pay off my contract with Kubota Credit Corporation, U.S.A. early?
Your insurance through KTAC Insurance Agency will cancel at the time of pay off and the unused portion is applied to your current balance. You can choose to purchase a new policy at this time by contacting a representative at 800-348-5802.

 

[mljenkins]

The KTAC website gives a number:

Q- What happens if I pay off my contract with Kubota Credit Corporation, U.S.A. early?
Your insurance through KTAC Insurance Agency will cancel at the time of pay off and the unused portion is applied to your current balance. You can choose to purchase a new policy at this time by contacting a representative at 800-348-5802.

That explains then why on the Kubota credit corporation that the payoff amount is lower than the loan amount. I wondered if that were the case.

I talked to them a few weeks ago. When I asked about after it was paid off, they said I could purchase additional insurance at that time. However, they didn't tell me that payoff would cancel the current loan.

I wonder if their rates without a loan are any different rate? Has anyone ever used KTAC beyond their loan period?

 

[wingizzmo]

I called before I bought same price but the policy without the loan removes the replacement clause under a castrofic event so if you have a 4year old tractor and it burns to the ground lets say knock wood never happens if you have a loan you get a replacement tractor .without the loan you get a check for what a 4 year old tractor is worth they have like a blue book value

 

[5030]

Granted there is no free lunch...but if you are unable to get the price reduced for a cash purchase then the there is no free lunch point is moot.

In the example I gave the price was the best I could negotiate. Not sure about Kubota, as I negotiated the best price I could when I bought my B2910, and did not think to ask about zero percent financing, and I paid cash. Perhaps a mistake on my part. Also did not think about Kubota insurance. Fortunately never needed it.

Paying a higher price just to get zero percent financing would be silly, IF one has the cash in hand. But if the price is the same, financing at zero percent and letting your cash earn some interest somewhere can make sense.

Is it really true that there is usually a discount if you pay cash for a Kubota tractor? Does Kubota only finance tractors at zero percent if purchased at the list price? Will Kubota refuse financing if the dealer sells at a discount?

Do not know...but I do know if you can pay the same amount over time as you would pay in cash on day one, you will be ahead by paying over time, IF you let the cash balance work for you over the finance period.

In my case, I never pay cash and I don't care about finance charges either because everything I purchase that is farm related is depreciated and all the fees and finance charges are a 100% write off.

Bottom line is, I don't care.