Insurance Kubota insurance

[LBrown59]

1*Originally Posted by LBrown59
But you don't have to get the insurance from Kubota.

2*If you finance through them you do; at least up here in the Northeast. My lat BX I got via my house insurance ....not anymore

2*This is incorrect .
Federal law clearly forbids any finance company to dictate to any borrower what insurer they must insure with.
The buyer always has the right to choose his own insurer NO EXCEPTIONS.
This law has been on the books for 30 or 35 years.
Some how you must have been misinformed.
Either that or you reside outside the USA.

 

[TheGoose]

I was quoted $20/month on my L3400 that I priced with a back-hoe. Tractor cost was $25K. Seems kind of high to me. $20/mo =$240/year*5years= $1200. Thoughts?

 

[8561]

LBrown is absolutely correct in both his posts. They can't force you to buy Kubota Insurance. No way. You should call the state attorney general if someone told you that. I insure my tractor through my homeowners exactly because I consider it to be a personal belonging (don't know what else it would be).

If you choose to insure it another way and don't think liability coverage is important, that's your choice. I truly hope you don't live to regret it. I also hope you have personal fortune enough to compensate the person you either cause property or bodily injury to, so they don't have to suffer further hardship as a result of your decision.

 

[bp fick]

I was quoted $20/month on my L3400 that I priced with a back-hoe. Tractor cost was $25K. Seems kind of high to me. $20/mo =$240/year*5years= $1200. Thoughts?

Yes, seems a bit high. Get another quote from somebody else. You didn't say if this was from your own agent or Kubota

 

[TheGoose]

This was on Kubota

Yes, seems a bit high. Get another quote from somebody else. You didn't say if this was from your own agent or Kubota

 

[KubotaJoe1977]

I have never heard that you had to buy Kubota Ins, if you financed a Kubota tractor. If anyone says that then they are 100% wrong. Kubota Ins is there if you want it. I checked around and I found that they were cheaper than my homeowners. I have also not heard anyone complain if they ever had to file a claim. So for now I am Happy to be covered by Orange.

 

[KubotaJoe1977]

PS. My homeowners ins would not insure my tractor as personal belongings they said I had to be put on a farm policy due to size and number of tractors I have. I only have 1 tractor. That sounded weird to me. So for now I am happy with Kubota

 

[twbpc]

You can't be forced to by insurance from one agency. According to the people I have talked with (dealers and friends) Kubota only offers the insurance because they want us to keep buying Orange. I guess they figure giving us cheap insurance that covers everything could be the thing that keeps us coming back and it did work on me. Like I said, I had a claim last year and it was easy. I still think using your home owner policy is a mistake but I hope no one has to find that to be a fact (one claim and you could be looking at an increase in cost if not lose your home owner coverage). Skip

 

[bp fick]

According to the people I have talked with (dealers and friends) Kubota only offers the insurance because they want us to keep buying Orange. I guess they figure giving us cheap insurance that covers everything could be the thing that keeps us coming back and it did work on me. Skip

Skip, well it is more than ONLY wanting us to keep coming back as customers. Remember, they finance a huge percentage of these tractors with their own money thru Kubota Credit. Insuring is largely in their own self interest.

That said, apparently folks are very happy with K insurance.

 

[8561]

You can't be forced to by insurance from one agency. According to the people I have talked with (dealers and friends) Kubota only offers the insurance because they want us to keep buying Orange. I guess they figure giving us cheap insurance that covers everything could be the thing that keeps us coming back and it did work on me. Like I said, I had a claim last year and it was easy. I still think using your home owner policy is a mistake but I hope no one has to find that to be a fact (one claim and you could be looking at an increase in cost if not lose your home owner coverage). Skip

But it DOESN'T cover everything.

Kubota offers insurance inexpensively for two reasons. One, it ONLY covers physical damage to the tractor, for which there is a minscule number of claims, and they are ALL small claims(in the insurance world, even replacement of your tractor is very, very small). A very small percentage of those claims are total losses, and remember, you'll likely get depreciated value, otherwise known as actual cash value.

The second reason Kubota offers cheap insurance is that they want to be sure there is an outlet to provide said physical damage only coverage to protect the interest of the lienholder, most often, Kubota credit. They don't care about your exposure to property damage of others or bodily injury, that's why they don't offer to cover it. That and the fact that the real large claims in insured losses are liabilty ones.

I wonder if the increase in cost that worries you so is greater than the annual year over year cost of a seperate policy issued through Kubota? Generally a single paid loss may cost you the loss free merit credit on your homeowners policy, and in the majority of cases that is less than $100, maybe a lot less. Let me ask you this: Is Kubota Insurance an admitted company in your state? If not, it's surplus lines, and probably subject to much less regulation.