KTAC Insurance Agency- A Kubota-Endorsed Insurance Program

[devildog1]

Well as I said before, on Monday Morning I'm bringing my Kubota Policy down to my agent to look at and advise. I too am satisfied with Kubota Products having owned 3 different models of tractors and TLB's being completely satisfied. I agree with you 100% , 30% increase in one year is an outrageous jump, think if other items on the home front rose to that level, have to sell and won't need a tractor. But one thing at a time.
DevilDod

Yep - I ran into the same thing 3 months ago. Their increase amounted to about a 30% jump. I don't recall getting a 30% increase in pay. Nor do I see unemployment going down 30%. I also talked with them on the phone... their only suggestion was to reduce the declared value of my equipment to hold down the price. hmmm - I really don't see that as any concession.

So - I checked with my homeowner policy carrier. Discovered that my tractor and all equipment on my land was 100% covered at total replacement value. While I like my Kubota, I'm afraid KTAC and their price jump just doesn't cut it. They'll have to make up for lost ground on somebody else - I'm not buying into a 30% price increase in one year on anything.

 

[MessickFarmEqu]

We got the increase at the dealer level as well. We did not see 30%, on our end it was 10%. Its possible the risk pool for those buying insurance directly is higher than those who are basically forced into buying it on a financing contract. Just speculating.

 

[Gem99ultra]

We got the increase at the dealer level as well. We did not see 30%, on our end it was 10%. Its possible the risk pool for those buying insurance directly is higher than those who are basically forced into buying it on a financing contract. Just speculating.

You may well be right about the direct buyer situation. I really am not just trying to hammer KTAC - I'm just trying to put logic into their increase, and use appropriate buying skill. I probably would have, begrudgingly, continued my KTAC insurance even with a 10% increase. But - I could see no logic in their price jump, nor did they offer any explanation other than they hadn't had a price increase in 3 years. Of course, I had/have a negative reaction to that reasoning.

Perhaps their risk evaluation is off? I know my car and motorcycle insurance dropped by 2/3's when I moved from Houston area Texas to here in the country in Mid-Georgia.

 

[KTAC]

Here are some reasons for the price change:
1. Cost of equipment, not just Kubota, has increased (used equipment value is high, parts, new technology such as Tier 4 engines, etc.).
2. We have added new benefits such as Loss of Use during warranty claims for select models (and did this retro for existing policies).
3. Our policy was not priced correctly when you take into account the superior coverage offered and the number of claims - see the next two bullets.
* The number of claims has gone up 88% (almost doubled) over the past 3 years.
* The number of new policies issued has increased by 77% - this is GREAT except for the rate was too low to offset the increase in claims.

To put things in persepective, an annual policy valued at $15k is STILL only around $240 a year ($20 a month). For insurance included in KCC financing, you are looking at around $15 a month. The difference is the policy is for a longer term (KCC financing) so we have an opportunity to earn more in premium which lowers our risk.

I am sharing this information because I stand behind KTAC and the relationship we have with our Customers.

There you go... insurance 101. :thumbsup:

Brian

 

[MessickFarmEqu]

There you go... insurance 101. :thumbsup:

Brian

Thanks. Its nice when you guys can step in and add to the conversation. I wish more departments and manufacturers where willing to do that.

 

[devildog1]

This is the update on continuing to insuring my tractor through KTAC after the 30% price increase. Brought my KTAC policy down to my insurance agent to look at and to get his recommendation and or a price to cover what I had with KTAC. After viewing policy he told me that I was covered for everything listed already under my homeowners with contents and equipment and vehicles. But that everything would be pro-rated as to the age of the tractor and or FEL, snow blower, BB's ect,ect. He said that the policy was a good one but I needed to determine if the extra cost was going to be beneficial and cost effective for me. I never have or will take tractor off my property so a null point there as far as insurance coverage goes. He advised me to call and ask if the $250.00 deductible could be raised to $500.00 to offset the cost of the 30% increase? I did that and KTAC uses only the $250.00. So after thinking a bit on it and working with agent from KTAC and not insuring 3 point snow blower and HD BB which is stored in a carport anyway and not in barn where tractor is , I saved just about enough to offset the 30% price increase. So it looks like I'll be still insuring my Grand L3540 will FEL for another year with KTAC. Just wanted to keep everyone updated when I made a complaint about the increase cost of KTAC.
DevilDog

 

[KTAC]

Thanks devildog1... I appreciate your feedback.

Regarding the deductible, I have looked at offering a $500 deductible (instead of just $250) but it just didn't make sense at the time (at least that is my opinion if I were in your shoes). In my example of a $15k tractor at $240 (actually it is $234) a year, raising the deductible would only lower the annual premium around $30 ($2.50 a month). I had a hard time charging someone $250 more in deductible to save $30 a year so I decided not to do it. As always, I will listen to the voice of the customer (You) and we will continue to look for ways to improve our products.

Thanks again everyone!
Brian Carter
Director, KTAC

 

[oldballs]

As far as "claims" go, I wonder how much stupidity has to do with "claims". But that ain't my call. The rates might be lower however.:confused3:

 

[billycalexander]

So I own a kubota gl3430. If I insure it can I insure my honda atv at the same time?

Billy Alexander

 

[cwadster]

Thanks devildog1... I appreciate your feedback.

Regarding the deductible, I have looked at offering a $500 deductible (instead of just $250) but it just didn't make sense at the time (at least that is my opinion if I were in your shoes). In my example of a $15k tractor at $240 (actually it is $234) a year, raising the deductible would only lower the annual premium around $30 ($2.50 a month). I had a hard time charging someone $250 more in deductible to save $30 a year so I decided not to do it. As always, I will listen to the voice of the customer (You) and we will continue to look for ways to improve our products.

Thanks again everyone!
Brian Carter
Director, KTAC

Resurrecting an older thread...Brian, I would GLADLY raise my deductible to $500 to save $30 a year. I would even more gladly raise my deductible to $1000 to save $60 or more a year. I don't carry a $250 deductible on anything else I own. I would have to drop my coverage by about $2000 in order to decrease my premium the same amount as raising my deductible by $250, according to your estimate. I buy insurance to protect me from painful/catastrophic losses, and the extra $250 won't bother me if I have a total loss--the extra $1750 would.

I received a 29% premium increase one year ago when I paid off my tractor and decided to continue my insurance with KTAC; another 30% this year means that my insurance through KTAC would be about 67% more than it was 2 years ago. Anything that costs me 67% more over that time period with no increase at all in benefit to me is NOT still a great value, IMO. I have heard good things about KTAC and would have renewed my policy with a higher deductible to keep my rate down without shopping it--which unfortunately is what I am doing right now. I've never had a P/C insurance company that didn't offer different deductibles...I just can't believe that KTAC would rather see me out the door than offer me more than one option (not a good option, IMO) to help offset a very large price increase.

Chris