Financing confused about kubota financing

[JoeG]

Talon,

That sounds like a very good policy. But it doesn't sound like a kubota policy as the one they sell is written by Chubb (see Gladiators link above.) Maybe your dealer steers his customers to Ohio Casualty?

Joe

 

[66gladiator]

Technically it is Marsh Affinity Group and is underwritten by Chubb currently, but previously was Ohio Indemnity, same type of coverage though.
But why do you think that KTAC requires insurance on collateral? Of course it is too insue that their interest is covered, but as Talon points out, you usually reap some benefit if a claim is made, plus it protects you from having to immediately pay off the loan should a claim occur.
Regardless, if you use your homeowners KTAC is the loss payee, not the homeowner and the deductable is usually much higher!!

 

[TalonDancer]

...if you use your homeowners KTAC is the loss payee, not the homeowner and the deductable is usually much higher!!

Exactly. The credit agreement requires you to make Kubota Credit Corp the primarly payee for any claims on the financed tractor regardless of who does the insuring. And our homeowner's insurance deductible is very high since we are only insuring against significant losses.

FWIW Most homeowner's insurance anciliary coverage limits are based on a % the value of HOUSE. This is probably not an issue for people with full scale houses. But people like us, who are living in a very modest cabin, which will eventually become the guest quaters (i.e. land rich and house poor), need to verify that their homeowner's insurance will cover the tractor being used to build the "big house"

Talon Dancer

 

[JoeG]

Gladiator,

I'm not sure I understand what your point is? Marsh is a broker; they market the product, they have a relationship with Kubota, they owe nothing to the customer (insured, you.)

I love insurance; I buy as much as I can (Auto, Home, Umbrella, Life)! Today's markets are creating some of the best prices in history. But the key to this is transparency and the ability to compare products apples to apples. Additionally I have worked in the insurance industry (IT/Systems) for much of my career and know many of the in's and out's of programs like the Kubota one. They are not known for their value or transparency. You would be surprised how far down the line (and how much!) commission is paid out on these products (or maybe you wouldn't?)!

First and foremost I buy insurance to protect ME. If it also protects Kubota well that's good too. So I want the best product and value that I can afford. Unfortunately for us consumers, this Kubota coverage is marketed alot like GAP insurance pushed when buying a new car (which by the way is a big market for Ohio Casualty.) You have to have it before you can leave with the car and we have the one and only policy that will meet this requirement! It's easy, just sign here. Oh by the way, we'll roll the cost into the loan for you, as a courtesy, wink, wink.

But in general this is an easy sell because, let's face it, claims are alow frequency. This is not a niche line. It is Property 101. Insure a stated value, assign a deductible and pay the premium. You should be able to get multiple quotes very quickly from your local agent. What's this "market value" notion? Who determines "market value"?

I never said the product marketed by Kubota is bad I'm just suggesting that there may be better/cheaper options out there. And I don't think that a true comparison of other comparable products is forthcoming.

If Kubotas product is so good they why don't they offer it after the loan is paid or to cash buyers?

I'm glad to hear that Talon is happy with his coverage. In the event of a claim I hope that he remains satisfied.

There has been alot of good discovery of the Kubota sponsored policy in this forum but it is still one sided. Let's hear some alternative to this policy that may (or may not) offer better coverage.

Just my .02

 

[TalonDancer]

....There has been alot of good discovery of the Kubota sponsored policy in this forum but it is still one sided. Let's hear some alternative to this policy that may (or may not) offer better coverage....

What I would like to hear is the results of claims on tractors with any/all sources of insurance: Kubota sponsored and ANY/ALL others.

Talon Dancer

 

[66gladiator]

If Kubotas product is so good they why don't they offer it after the loan is paid or to cash buyers?

Patience Grasshopper,
Insurance options and extended warranties coming soon (2008) to a Kubota dealer near you!

Joe,
I never intended to argue Insurance with you. (I am not a big fan of mandated insurance by any means)

With my customers, KTAC insurance is included in roughly half of our contracts. And KTAC just announced that there will be no finance charges on KTAC insurance included in contracts.

BTW, Kubota usually relies on the Iron Solutions Official Guide (endorsed by the NAEDA) which is released quarterly by region.

So if you can find a comparable plan coverage wise with a $250 deductable for $25 a month or less, by all means go with it.