Pro / Cons of KTAC?

[Rock Crawler]

Agreed. I'm having to go the route of a stand alone policy for my tractor with my insurance company, therefore any claim on the tractor won't effect home owners and a MUCH lower deductible. I would love to have KTAC, but knowing if it were to become totaled and I would get a depreciated value reimbursed - I just can't go that route. My insurance company (surprisingly) is the better option for me.

That is not true if you are financed. While financed the KTAC policy is a full replacement policy. If you do the 84 month loan, your KTAC is full replacement until that loan note is paid off. I'm paying nearly all cash for my B2650 that is ordered under the 0%/84 month with KTAC, I'll borrow just over $8,000 and then pay off almost all of it in the spring when my bonus comes in from work. I'll leave a grand on it, and not pay that off until the end of the 84 months, thus keeping the KTAC full replacement policy in effect for the 7 years.

Once that ends, you provide KTAC an insured value on your tractor and you pay up front per year for a policy based on that stated value that you dictate.

By current tractor is slightly over insured by KTAC so that in the event of a total loss I can easily go but a similar used tractor with likely less hours and a few years newer. They asked me what value I wanted on it, and they priced it based on that. So you can control the policy value.

 

[cold1313]

That is not true if you are financed. While financed the KTAC policy is a full replacement policy. If you do the 84 month loan, your KTAC is full replacement until that loan note is paid off. I'm paying nearly all cash for my B2650 that is ordered under the 0%/84 month with KTAC, I'll borrow just over $8,000 and then pay off almost all of it in the spring when my bonus comes in from work. I'll leave a grand on it, and not pay that off until the end of the 84 months, thus keeping the KTAC full replacement policy in effect for the 7 years.

Once that ends, you provide KTAC an insured value on your tractor and you pay up front per year for a policy based on that stated value that you dictate.

By current tractor is slightly over insured by KTAC so that in the event of a total loss I can easily go but a similar used tractor with likely less hours and a few years newer. They asked me what value I wanted on it, and they priced it based on that. So you can control the policy value.

You need to read a few posts above that one. The full replacement by KTAC only applies if you get KTAC at the time of purchase / signing the contract. If you do not get KTAC at that time, and want KTAC a day later - you're S.O.L. You get the depreciated value KTAC policy - not the full replacement with new policy.

This is all per KTAC. I was very surprised - and disappointed as this was not made clear when closing. Like I said, if I could get KTAC now, with the full replacement with new, I would - but KTAC no longer allows that.

 

[Rock Crawler]

You need to read a few posts above that one. The full replacement by KTAC only applies if you get KTAC at the time of purchase / signing the contract. If you do not get KTAC at that time, and want KTAC a day later - you're S.O.L. You get the depreciated value KTAC policy - not the full replacement with new policy.

This is all per KTAC. I was very surprised - and disappointed as this was not made clear when closing. Like I said, if I could get KTAC now, with the full replacement with new, I would - but KTAC no longer allows that.

Yes, that's pretty much what I explained... But your term depreciated value is misleading. You set that value, not them. When I bought my used BX25D and called them after learning about the insurance, the guy asked me to state what the insured value would be. I stated the value as $2000 more than I gave for my 4 year old tractor with 92 hours on it. So it prices out at a flat value per thousand dollars that you want insured, based on how many thousands of dollars you wish to have it insured for.

If my new to me used tractor burned to the ground, I would make money on the deal and go buy a newer/lower hour used tractor. I don't see that as being a bad deal at all.

I bet your 3rd party insurance works in a similar fashion, you provide a value to be insured. The difference is that KTAC works very smoothly with any Kubota dealership and it gets you taken care of quickly and painlessly in the event of a covered loss.

I'd still take the KTAC over another insurance policy.

 

[cold1313]

Sorry for misunderstanding your first post. KTAC didn't seem to indicate that when I spoke to a few representatives, however I hope you are correct. I'll contact KTAC to confirm. What you describe is the same as my insurance company, and I would prefer KTAC if it all works the same.

KTAC was actually a tad more expensive than my insurance company but making a claim sure sounds a lot easier, so probably worth the difference.

 

[KenB2920]

Just my .02

I’m now on my third bota and have had KTAC on them all. I’ve made 2 claims in 7 years. They were great to deal with both times. Dealer did well also.

 

[Fallon]

That is not true if you are financed. While financed the KTAC policy is a full replacement policy. If you do the 84 month loan, your KTAC is full replacement until that loan note is paid off. I'm paying nearly all cash for my B2650 that is ordered under the 0%/84 month with KTAC, I'll borrow just over $8,000 and then pay off almost all of it in the spring when my bonus comes in from work. I'll leave a grand on it, and not pay that off until the end of the 84 months, thus keeping the KTAC full replacement policy in effect for the 7 years.

Once that ends, you provide KTAC an insured value on your tractor and you pay up front per year for a policy based on that stated value that you dictate.

By current tractor is slightly over insured by KTAC so that in the event of a total loss I can easily go but a similar used tractor with likely less hours and a few years newer. They asked me what value I wanted on it, and they priced it based on that. So you can control the policy value.

Paying of a loan early generally makes sense. Unless it's a 0% loan. Paying it off early saves you from paying that 0% interest. you'd be better off putting that money in a savings or investment account & making payments. 0% loans generally cost a few grand more up front than paying cash. That's where they make their money instead of the interest.

 

[Rock Crawler]

Paying of a loan early generally makes sense. Unless it's a 0% loan. Paying it off early saves you from paying that 0% interest. you'd be better off putting that money in a savings or investment account & making payments. 0% loans generally cost a few grand more up front than paying cash. That's where they make their money instead of the interest.

Interestingly, Kubota does not play that cash vs financed price game. If you walk in with stacks of $100 bills, or if you financed it to the max... Same price.

I know what your saying about the free loan, but my wife does not want another payment. I have a 2017 Ram truck and she has a 2016 Cherokee TrailHawk that have payments. We do not want to carry 3 payments, so her deal was to buy the tractor but pay it off with the spring bonus.

Then I'll start working on her about the missing 18' x 96" dump trailer. You know... There one that is missing because we haven't bought it yet!

 

[Goldnrod24]

0% loans generally cost a few grand more up front than paying cash. That's where they make their money instead of the interest.

Not my recent (this month) experience. I got a generous dealer discount off MSRP, 2 implement rebates (totaling $1K) and the 0% financing. YMMV.

 

[Rock Crawler]

Not my recent (this month) experience. I got a generous dealer discount off MSRP, 2 implement rebates (totaling $1K) and the 0% financing. YMMV.

Same here. I got $2997 off of MSRP on the B2650 I have ordered, and then the $1000 Kubota rebate. The price as ordered, prior to rebate was $31,247. So it's $27,250 before taxes, trade and deposit. Total loan is $8,707 at 0% for 84 months.

The breakdown of the ordered modules is attached.

 

[crazyal]

I didn't get KTAC simply because my tractor never leaves my property so my homeowners covers the full cost of it for free and I know my agent well and it's good coverage. But if I was to pay I would most likely go with KTAC simply because they are not going to question the dealership on what parts needed replacing and the cost since they and the dealership are both a part of Kubota. Other insurance companies may be very good as well but why risk it. Secondly (I'm guessing) a Kubota dealer isn't going to question how they will get paid if you have KTAC. They've dealt with them plenty of times and know what to expect. Just one less headache if you need to use your insurance.