Insurance Insurance

[jwcinpk]

Just wondering what does the insurance we are all forced to buy when we finance a tractor cover?
I'm told it's physical damage insurance, but exactly what physical damage would it cover?

 

[Farmerboy]

I rode my tractor over a 10' drop off in June - sprung the arms on the loader, buckled the hood, smashed the roll bar, etc. - did about $7,000 of damage. Insurance paid to have the unit picked up and completely fixed. All I owed was the $500 deductible. While working with my local dealer, some guy had a log roll over the back of the bucket and smash his hood - insurance paid to fix.

Also, you have to be aware that the insurance only covers the "as purchased" value of the tractor/implements. For example, if you purchased a loader with your tractor, your dealer probably gave you some sort of discount off of list price for the loader. So, if the loader costs $4K but the purchase agreement reflects $3K, the insurance is only for $3K. This comes in play if something is "totaled" - you'll end up paying the difference to get the exact same hardware. One more thing, the insurance company will adjust the value of the "totaled" equipment to account for depreciation.

 

[LAWALLSTRACTOR]

The insurance covered vandalism damage for one of my customers. The dash was smashed, hydraulic hoses cut, boots cut , and the seat was cut. The insurance covered all but the deductable.

 

[jwcinpk]

And the dedudctible is usually $500?

 

[wallace]

Just so everyone is clear. You are not forced to take the insurance.
You are required to have insurance on the equipment if financed.
You can provide your own insurance or take what is offered but you must have insurance for the term of the loan.

I think Agricredit has a discreption of what it is all about on their web page.

 

[Erik_in_Hoyt]

how much does agricredit insurance cost?

 

[LAWALLSTRACTOR]

how much does agricredit insurance cost?

It depends on where you are from, as your state insurance laws have an effect on the insurance pricing, and it depends on the amount and length of your Agricredit loan.

 

[DonWorrell]

how much does agricredit insurance cost?

I can't remember exact numbers but I can say after I got a few quotes I got cheaper and as good of insurance from my local Farm Bureau as I could anywhere even considering Agricredit. I have my 3325 insured for $8,800 and it cost me $88.00 per year. Price hasn't change in almost three years.

I bought my tractor when Mahindra had $500.00 rebate or 0% for 36 months. Well at 0% it was better for me to use Argicredits money than my own. I normally don't carry insurance on my tractors.

Don

 

[Erik_in_Hoyt]

Don,
thanks - I had forgotten about Farm Bureau.
We had looked at them a few years back and they couldn't compete with AmFam for the bundled house, cars, and construction loan, but it may be time to go look again.

thanks!

 

[psj12]

Speaking of insurance, I cannot get my property in Oklahoma covered by anyone. State Farm will not cover it because I do not live on it even though my brother lives across the road from it. I live in Md. and my State farm homeowners will not cover it although they (Md. agent) did sell me insurance on the RV trailer I keep in OK. My auto insurance State Farm aget in OK won't cover it even though I keep my truck (which he does cover) in the barn. I have homeowners, auto and RV insurance through State farm.

I keep a good deal of stuff in the metal barn including my tractor and lots of tools. Does anyone know who would sell me insurance against theft, fire and storm damage?

 

[Erik_in_Hoyt]

lease it to your brother for $1 a year and reimburse him for the cost of insurance.

 

[EFC]

I can't remember exact numbers but I can say after I got a few quotes I got cheaper and as good of insurance from my local Farm Bureau as I could anywhere even considering Agricredit. I have my 3325 insured for $8,800 and it cost me $88.00 per year. Price hasn't change in almost three years.

I bought my tractor when Mahindra had $500.00 rebate or 0% for 36 months. Well at 0% it was better for me to use Argicredits money than my own. I normally don't carry insurance on my tractors.

Don

Agricredit on 8800.00 in TN on a new tractor would be 78.14 per year and on a used tractor it is $89.76 per year. Each area has a different price. For example, if you were in Idaho it would be $29.56 and $44.35 respectively. Tractors under 250 hours are considered as new.

Buck

 

[whiteh2o]

Farm Bureau insures my tractor for $44.00 a year. I park it in the garage. Homeowners fire insurance coverage does not cover the vehicles in the garage. Cheap price to pay for coverage. I also have full insurance on the ATV even though liability insurance through Farm Bureau is free for the same reason.

 

[warhammer]

Agricredit will likely take your insurance as well. Farm Bureau insurance was much less expensive AND had better coverage than what was offered by Agricredit when I bought my Kioti. The agent had to get the particulars - model, SN's and purchase costs and then faxxed a binder over before delivery.

Warhammer

how much does agricredit insurance cost?

 

[PILOON]

We had same problem with cottages here in Quebec.
Cottage insurance was either 'no go' or very costly depending on assurer.
However we discovered that using the term "seasonal dwelling" reasonable coverage became available.

 

[DonWorrell]

Agricredit on 8800.00 in TN on a new tractor would be 78.14 per year and on a used tractor it is $89.76 per year. Each area has a different price. For example, if you were in Idaho it would be $29.56 and $44.35 respectively. Tractors under 250 hours are considered as new.

Buck

Buck,

Doesn't Agricredit insurance reduce each year and isn't it used mainly to cover the balance owed on the tractor not replacement value of the tractor?

Don

 

[Erik_in_Hoyt]

I was assured that the agricredit insurance is as real as my auto policy - if something happens, they figure out the value of the machine by blue book and regional sales prices on similar units, and that's what I get paid, minus my $500 deductible and anything still owed on the tractor.

 

[srjones]

When I purchased, I asked my insurance company to add the tractor to my home owner's policy. They faxed a rider to the Agricredit or the dealer (I can't remember which) and the insurance requirement was waived.

-srj

 

[kthompson]

Speaking of insurance, I cannot get my property in Oklahoma covered by anyone. State Farm will not cover it because I do not live on it even though my brother lives across the road from it. I live in Md. and my State farm homeowners will not cover it although they (Md. agent) did sell me insurance on the RV trailer I keep in OK. My auto insurance State Farm aget in OK won't cover it even though I keep my truck (which he does cover) in the barn. I have homeowners, auto and RV insurance through State farm.

I keep a good deal of stuff in the metal barn including my tractor and lots of tools. Does anyone know who would sell me insurance against theft, fire and storm damage?

As was suggested you may find if leased to your brother there he could get coverage. It is worth checking out. No doubt you realize insurance varies a lot from state to state on who will insure what and even within a state as to property due to claims ratio. You probably could get a "commerical" policy. You will not be able to get a homeowners policy and you not living there are at least close family member. Remember, at time of claim their can and do verify they were told the truth and it still appllies, like how often you are there or who lives there.




As to insurance on a tractor, this also varies with the different home owner company and again from state to state. They have to want to sell that coverage and then have to be approved by THAT state to. At the same time if a "rider" on a home owner policy be sure it covers damage to the tractor such as the 10 foot fall mention for some only cover such as theft or damage by house fire. Normally any coverage that can be bundled cost less. So unless it is a commerical risk, always ask your homeowner company first. If commerical risk, then ask your commerical liability insurance company first.

As to why the premium remains level, not sure who covered that as the value goes down what they are insured lowers in value so in real life the premium is increasing but in a hidden way. Not say that is unethical.

 

[cyberfriend]

Insurance is matter of mutual trust. The purpose of Insurance is to protect against losses. Be happy if the losses are reimbursed. Any attempt to make profit would not be fair.