when to let go of tractor insurance

[dnw64]

I have out smarted myself with the same logic and lost so I always carry replacement coverage on any of my vehicles worth more than 10-years annual insurance premium. Do the math, it will take you 80+ years to replace a $25K tractor to save $300 per year on insurance.

I mean not to be the least bit offensive, but I guess I would have to place you in the Pessimist Camp. BTW, I believe everyone is either an Optimist or a Pessimist. And neither is better than the other, but you do have to realize that it affects many fundamental decisions. Such as whether/how much insurance to get*.

You have assumed that there WILL BE a TOTAL LOSS, and figure that insurance is cheaper than new tractor. How many people with a tractor NEVER have a loss of any sort, let alone a COMPLETE loss? BTW, the insurance companies could tell you that. They know all the nitty gritty details.

*I finally got life insurance. Not because I need it(!!), and frankly my wife doesn't need my life insurance either. But it gives her peace of mind, so I spend the $2500/year and it makes her happy. Happy Wife = Happy Wife.

 

[oosik]

dnw64 - In todays society - if you have nothing to loose then why insure it. If you have a great deal to loose - better have it covered.

 

[LD48750]

The insurance industry has a bunch of good salesmen.

 

[dnw64]

dnw64 - In todays society - if you have nothing to loose then why insure it. If you have a great deal to loose - better have it covered.

Problem is determining exactly where what you have falls. It's rarely black and white.

 

[ovrszd]

Problem is determining exactly where what you have falls. It's rarely black and white.

It's my belief there are to camps. Not pessimist/optimist. Rather, those that have had a catastrophic loss and those that haven't.

I also carry replacement insurance. Nine years ago I had a $194,000 insurance claim. I smile all over when I think of my insurance premiums.

 

[murph1]

I insure everything that will guarantee nothing will happen to it. Being a Murphy I am a pessimist.

 

[ovrszd]

I insure everything that will guarantee nothing will happen to it. Being a Murphy I am a pessimist.

You're the most optimistic pessimist I know Murph....

 

[majorwager]

Insurance for Preventable incidents. Unloading tractor on hill, rear truck wheels lifted off ground contact, you can see result. This photo imported from another site. No clue where incident occurred.

 

[ovrszd]

That will not buff out.....

 

[bdog]

It's my belief there are to camps. Not pessimist/optimist. Rather, those that have had a catastrophic loss and those that haven't.

I also carry replacement insurance. Nine years ago I had a $194,000 insurance claim. I smile all over when I think of my insurance premiums.

Unless you are a multi millionaire it would be foolish not to insure something that is 194k. Tractors come in all price ranges but say you buy a new 20k tractor. After several years it is worth 10-15k. If that amount of a loss would be catastrophic to you then yes insure. If it isn't, and your risk is low then maybe don't. Some people leave their tractors at remote properties unattended. Others keep them locked inside a shop with an alarm system in their backyard. Some people have crazy terrain and the likelihood of an accident is greater than those with flat ground. Maybe flooding is a concern. Maybe it isn't. Lots of variables come into play.

I don't insure my tractor. The risk of something happening to it and the cost to replace it if something did don't scare me. I do have an inland marine policy with over a million in listed items that I do worry about because of their cost, and the fact they travel to remote locations.