oldcrusty
New member
What all is the scope of coverage of JD's insurance (I will be financing the CUT). Would I be covered as I take it from job to job on a trailer or only when working on my property.
Insurance JD insurance coverage
- Thread starter oldcrusty
- Start date
- Views: 1227
BillyP
Veteran Member
You'll be covered no matter where you are. It covers fire, theft and collision with a $500 deductable. If your tractor is a total loss, the insurance will pay you book value minus what is owed to JD credit.
I have a farm policy and would have to add my tractor to it, at a cost of $6.00 per thousand. I opted for the JD insurance, which saved me a over 50%. Just wish I could keep the insurance after the tractor is paid for.
Billy
I have a farm policy and would have to add my tractor to it, at a cost of $6.00 per thousand. I opted for the JD insurance, which saved me a over 50%. Just wish I could keep the insurance after the tractor is paid for.
Billy
cowboydoc
Super Member
- Joined
- Dec 23, 2000
- Messages
- 6,725
- Tractor
- JD 8320 MFWD, JD 6415 MFWD, FEL, and cab, John Deere MFWD 4600, John Deere 4020, John Deere 4430, John Deere 455 mower, Deutz, and Gehl 4610 perkins skidsteer
I believe that insurance is only good for the balance of the loan. I may be wrong here but I think that is right. I believe that insurance is to cover the loan company only. They don't provide any liability coverage either which your homeowners or a farm policy would. That is much more important than the cost of the tractor. It will cover the tractor in all legal situations though.
BillyP
Veteran Member
Richard,
You're right and wrong.
The insurance is good for what ever the tractor is worth at the time of loss, regardless of the payoff, for the term of the policy (until it's paid off). After that, you're on your own. If someone steals it, you burn it or you total it, while still owing one payment, it's covered at book price. If there's a dispute of what the tractor is worth, it will be appraised.
You have no liability insurance what so ever under this policy.
I reread the policy and since I'm not a lawyer I called my dealer. He said, even if you owe $1, it's covered for the value of the tractor, plus they pay pickup and delivery.
Billy
You're right and wrong.
The insurance is good for what ever the tractor is worth at the time of loss, regardless of the payoff, for the term of the policy (until it's paid off). After that, you're on your own. If someone steals it, you burn it or you total it, while still owing one payment, it's covered at book price. If there's a dispute of what the tractor is worth, it will be appraised.
You have no liability insurance what so ever under this policy.
I reread the policy and since I'm not a lawyer I called my dealer. He said, even if you owe $1, it's covered for the value of the tractor, plus they pay pickup and delivery.
Billy
cowboydoc
Super Member
- Joined
- Dec 23, 2000
- Messages
- 6,725
- Tractor
- JD 8320 MFWD, JD 6415 MFWD, FEL, and cab, John Deere MFWD 4600, John Deere 4020, John Deere 4430, John Deere 455 mower, Deutz, and Gehl 4610 perkins skidsteer
Yea I didn't know for sure on that Billy. I know alot of those finance insurances only cover the amount of the loan. Nice to hear JD doesn't play that game with consumers.
bigpete
Veteran Member
Just a quick comment on insurance on tractors....
It all depends on how you intend to use the CUT. I spent twenty minutes on the phone with my insurance agent (homeowners and auto) discussing whether my new 2210 would be covered under my homeowners policy.
My homeowners policy covers my tractor for replacement value under the "contents" definition of the homeowners policy. This coverage is effective when I am using or transporting the tractor non-commercially. I am covered in transport to a friends house to aerate his lawn, transport to the dealer for service, or cutting grass for a neighbor down the street,as long as I'm not doing it for profit.
I am just speaking from my personal perspective, tractor use, and insurance position. Any commercial or ag use would certainly require other considerations. Financing insurance, in general, covers the remainder of the loan, and it sounds like the JD coverage includes some kind of depreciated value of the collateral, which protects your equity to some extent. Usually these policies just pay off the loan.
My advice is to talk to your insurance agent about your use and about the JD policy. I figure that the commision and renewal income paid to the agent on your policy should allow you a little consultation time. Maybe the JD policy is the best for some situations, but I've already said no to the option.
It all depends on how you intend to use the CUT. I spent twenty minutes on the phone with my insurance agent (homeowners and auto) discussing whether my new 2210 would be covered under my homeowners policy.
My homeowners policy covers my tractor for replacement value under the "contents" definition of the homeowners policy. This coverage is effective when I am using or transporting the tractor non-commercially. I am covered in transport to a friends house to aerate his lawn, transport to the dealer for service, or cutting grass for a neighbor down the street,as long as I'm not doing it for profit.
I am just speaking from my personal perspective, tractor use, and insurance position. Any commercial or ag use would certainly require other considerations. Financing insurance, in general, covers the remainder of the loan, and it sounds like the JD coverage includes some kind of depreciated value of the collateral, which protects your equity to some extent. Usually these policies just pay off the loan.
My advice is to talk to your insurance agent about your use and about the JD policy. I figure that the commision and renewal income paid to the agent on your policy should allow you a little consultation time. Maybe the JD policy is the best for some situations, but I've already said no to the option.
BillyP
Veteran Member
BillyP
Veteran Member
BillyP
Veteran Member
I would like to add one thing. If your homeowners policy will cover your tractor with no additional premium, that would be the way to go. My doesn't. This policy was $272.00 for 5 years of coverage compared to $720.00 to add to my farm policy for 5 years.
Billy
Billy
bigpete
Veteran Member
BillyP,
The JD policy sure sounds like the better, more economical coverage plan than having to add a "schedule" to your existing farm policy. It also sounds like you had the foresight to check with your agent first.
Insurance and home security investments are the only things we own that we hope we never get to use.
The JD policy sure sounds like the better, more economical coverage plan than having to add a "schedule" to your existing farm policy. It also sounds like you had the foresight to check with your agent first.
Insurance and home security investments are the only things we own that we hope we never get to use.