JD Tractor Insurance - have you had a claim? What do you know?

[Jbell2355]

I financed a portion of my recent tractor purchase and as part of the contract, JD required I have the tractor insured. It was prohibitively expensive to add to my HO insurance, so I reluctantly accepted JD's insurance. I was reluctant because there is absolutely NO info available on the insurance. The dealer knows nothing and nothing is provided in writing.

Here's what I'm wondering: Is there a deductible? If so, how much? Does the insurance only protect JD for the remaining loan balance (this is my hypothesis), or does it cover full replacement of the tractor and protect me as well? What risks does it cover? (arson, accident, improper operation, wind damage etc). If I want to be covered for my investment, do I still need to get insurance elsewhere?

I'm looking for a dealer who knows and can help me find the info in writing, or someone who has had experience with a claim. Really, I'm happy to hear anything anyone has to say.

Thanks!

 

[SLHawkins]

Jbell,
I do not have an answer to all of your questions. But, I did file a claim when the ramps gave-way while loading my tractor on the back of a drop-deck trailer. I bent the shaft and busted the gear for the MWFD. The service department made the initial contact and handled all of the paperwork with JD insurance agent. All I had to do was follow-up with the claims agent. All handled via e-mail and phone, it was very easy and effecient. There is a deductible. $500 sticks in my mind. At the same I had the tractor in for repair, I had them service it with a fluid and filter change. It was all on the same bill. I paid for the service and the insurance handled the repair. I will see if I can find the paperwork. This was over a year ago. I think I made a digital copy however. I think I also saved the e-mails with the claims agent name and number. When I get back to my home computer, I will see if I can find it. You can give him a call. He'll be able to answer your questions. Fire, theft, and accidents are covered for sure. Improper operation may require some investigation.
Hawk

 

[Jbell2355]

SLH, thank you for the info. I'm sorry about the accident! I bet that ruined your whole day! The phone number for the agent would be exceedingly helpful! Thanks again.

jb

 

[meburdick]

How much did JD ding you for the insurance? In my experience, any contract that requires insurance will impose a fairly costly policy if you don't have one of your own. I insure my entire 2520 machine with all implements through Peerless for a few hundred dollars a year. I have a high umbrella liability policy, so that keeps part of the cost down.

Insuring a tractor via your homeowner's isn't really an option because they don't cover it the same way that your finance contract requires. Contact your agent to inquire about Peerless' equipment policies to make sure you aren't overpaying for the coverage through JD.

 

[Jbell2355]

Well, they didn't charge much...only $467 for 4 years of coverage. This is why I suspect only JD's arse is covered.

 

[meburdick]

Good suspicion.

My coverage includes damage during operation as well as loss by theft, fire, and even terrorist acts. Check to see what's covered under your policy... And how the payees are handled. There's a reasonable chance that ONLY the outstanding balance on the loan is covered at the time of loss, and the only payee is Deere. And you may still have a deductible.

 

[jd110]

Check out this link. It may answer some of your questions. https://www.deere.com/en_US/jdc/product_financing/commercial/physical_damage_insurance.html

 

[meburdick]

Key point: Coverage For Actual Cash Value At Time Of Loss (Less Deductible)

That means that they provide the ACV of the equipment at the time of loss. A full insurance policy can be provided that will provide REPLACEMENT VALUE (which is much higher). And, you're still subject to your deductible. Bottom line, you can't replace the damaged item for what they'll give you. If you're going to carry insurance, carry it with a policy that will actually do something for you as well as for Deere.

 

[SLHawkins]

JB,
I looked but was not able to find the paperwork or the information for the claims agent who helped me. Sorry 'bout that. However, the link above will get you access to some info.

Hawk

 

[smalltown]

I have often wondered if you already have the John Deere coverage, then decide to purchase additional coverage from your insurance agent, and subsequently suffer a tractor loss the JD insurance will pay off the loan.
Wouldn't the additional insurance cover the cost of getting a new tractor without a loan or close to it ?????