Insurance - Used Tractor

[JME81]

I bought a used tractor, no financing and is paid off. What should I do about Insurance? It's a LX2610 CAB. [AFFILIATE=1, nofollow=true, newwindow=true, title="Kubota"]Kubota[/AFFILIATE] insurance, home owners? What's your experience?

 

[RjCorazza]

*Kubota insurance is always highly rated, but I thought it was only available in combination with *Kubota financing. Could be wrong.

Anyway, I confirmed coverage through my homeowner's policy, but they don't cover a lot of things like accidental damage, or ANYTHING that occurs off property. It's basically fire, theft, and vandalism.

 

[hube2]

The only reason I have insurance on my tractor is because it was required for the loan and I'm not sure I'm going to keep it insured when the loan is paid off. I had to add it to my homeowner policy and it covers anything that could possibly happen to it including a rollover. I guess I have to decide if I could afford to replace it if something happens, but that decision is a couple of years out yet.

If you're worried about it I would talk to whoever your homeowner policy is through and see what they say.

 

[JethroB]

I bought a used tractor, no financing and is paid off. What should I do about Insurance? It's a LX2610 CAB. Kubota insurance, home owners? What's your experience?

I suggest calling your insurance agent. They should be able to find coverage that is suitable. I priced [AFFILIATE=1, nofollow=true, newwindow=true, title="Kubota"]Kubota[/AFFILIATE] insurance when I bought mine new and while it has extensive coverage it was pricy at $750/yr. I scheduled mine on a farm policy which gives me coverage similar to full coverage on an auto for $200/year. Fire, theft, comprehensive and off premises use & liability. No commercial work allowed.

 

[Jrasband]

I suggest calling your insurance agent. They should be able to find coverage that is suitable. I priced [AFFILIATE='1, nofollow=true, newwindow=true, title="Kubota"']Kubota[/AFFILIATE] insurance when I bought mine new and while it has extensive coverage it was pricy. (3X) I scheduled mine on a farm policy which gives me coverage similar to full coverage on an auto for $200/year. Fire, theft, comprehensive and off premise liability.

what is the deductible?

 

[JethroB]

$1000 deductible. No deductible on glass breakage (cab ) and includes 7 years of replacement coverage. AutoOwners.

 

[Thomas]

We went homeowners...no other may use our [AFFILIATE=1, nofollow=true, newwindow=true, title="Kubota"]Kubota[/AFFILIATE] nor use in business.

 

[Jrasband]

Anyone here used the Farm Bureau? We just checked and it's below $250 a year for a 50k tractor. Seems to have good coverage. The only thing we are not sure about is if they would replace it at purchase value in the first couple of years, or if they would factor in depreciation.

 

[JME81]

KTAC said that it would be $478 a year and would give me the value of the tractor at the time of incident.
My Home Owners left me a VM and I need to call back but they said it would add $100 annually and would be depreciated value or value of tractor at the time of incident.

I may give Farm Bureau a call too.

 

[JethroB]

If I understood KTAC correctly they will give you 100% of original purchase price towards a replacement [AFFILIATE=1, nofollow=true, newwindow=true, title="Kubota"]Kubota[/AFFILIATE] tractor. OR 80% in cash should you not choose to replace it. Someone please correct me if I’m wrong. There are just so many twists to insurance of all types.

 

[JME81]

If I understood KTAC correctly they will give you 100% of original purchase price towards a replacement [AFFILIATE='1, nofollow=true, newwindow=true, title="Kubota"']Kubota[/AFFILIATE] tractor. OR 80% in cash should you not choose to replace it. Someone please correct me if I’m wrong. There are just so many twists to insurance of all types.

They told me since it's used and paid off, that is what they would cover. New on the other hand is what you're describing.

 

[Jrasband]

So far what we understand is that KTECH will cover the value at time of purchase for the first 3 years. They quoted us at $94/month for a 50k tractor. Farm Bureau had similar insurance on other levels but we are trying to determine now if they would replace it at value at time of purchase, or if it depreciates right away in their eyes. Farm Bureau is $18/month. Big difference.

 

[dstig1]

Most tractors get automatically covered on your homeowners policy as personal property, but it makes a lot of sense to talk to them and ask if it needs some special rider or whatnot as insurance laws vary by state a lot. BUT... if it leaves your property and gets damaged, then they won't pay under homeowners. So if you are regularly taking it off your land on public roads, for example, then you will need either what they called an Inland Marine policy on it, or something more specialized like KTAC. Yes I have been through this before when I was storing my tractor in a farmers shed and trailering it back and forth to my property....BUT again - laws vary a lot by state so you need to ask your agent.

 

[AndyMA]

I dropped a tree on my MX5200. KTAC covered it all. Zero issues

Andy

 

[mikester]

Most tractors get automatically covered on your homeowners policy as personal property, but it makes a lot of sense to talk to them and ask if it needs some special rider or whatnot as insurance laws vary by state a lot. BUT... if it leaves your property and gets damaged, then they won't pay under homeowners. So if you are regularly taking it off your land on public roads, for example, then you will need either what they called an Inland Marine policy on it, or something more specialized like KTAC. Yes I have been through this before when I was storing my tractor in a farmers shed and trailering it back and forth to my property....BUT again - laws vary a lot by state so you need to ask your agent.

Careful with this advice. Lawn tractors go under homeowners policies yes, "commercial" or AG tractors NO. Talk to your insurance agent, get coverages in writing, and don't make assumptions that you will get coverage from a company that makes money by NOT paying out on claims.

The nasty surprise I discovered during this years renewal was that I'm paying a premium on an insured value $X, but after the 5 year limited depreciation waiver they only pay out based on what THEY think your machine is worth at the time of claim, not what you are paying insurance premiums on value. So even if you are paying a premium on $100,000 the insurance adjuster will offer to cut you a cheque for $50K because you surpassed the 5 year mark and tell you "thanks now FO". FYI Some insurance companies have 2 year limited depreciation waiver policies.

Remember, when going to the casino and betting against the house, the default is the house always wins.

 

[dstig1]

Good point Mike. I was thinking homeowner CUTs not Ag stuff, and not sure where the line gets crossed from one to the other but I did talk to my agent about ours. But that advice still holds - talk to your agent and explain what you have...

 

[ROUSTABOUT]

Careful with this advice. Lawn tractors go under homeowners policies yes, "commercial" or AG tractors NO. Talk to your insurance agent, get coverages in writing, and don't make assumptions that you will get coverage from a company that makes money by NOT paying out on claims.

The nasty surprise I discovered during this years renewal was that I'm paying a premium on an insured value $X, but after the 5 year limited depreciation waiver they only pay out based on what THEY think your machine is worth at the time of claim, not what you are paying insurance premiums on value. So even if you are paying a premium on $100,000 the insurance adjuster will offer to cut you a cheque for $50K because you surpassed the 5 year mark and tell you "thanks now FO". FYI Some insurance companies have 2 year limited depreciation waiver policies.

Remember, when going to the casino and betting against the house, the default is the house always wins.

Yeah, if most people have done a five year deduction IRS taxwise.... But a lot of people can do a one year deduction if it's over 6,000 pounds. That goes for trucks and SUV's too.

 

[mdhughes]

Do you plan on taking your tractor off your own property? If so, make sure that the insurance you get will cover it in transport and when you get to where you are going. This is one of the reasons I have kept the Kubota insurance up.