Pro / Cons of KTAC?

[cold1313]

On my first Kubota, it's insured under my home owners since it doesn't leave my property and no commercial use. No added cost to my home owners insurance.

Looking at a larger machine, I still won't be performing commercial work, but I can see running over to the neighbors to help with items - which my home owners would not technically cover.

Never looked at KTAC before - it seems to have some pro's and some con's.

The biggest would be if a major component were to fail from use - which I'm not sure how likely that really is (Light use on my equipment)

Lastly - Can KTAC be added to a machine that's a few years old?

 

[Tractor Seabee]

If you read all the fine print on both contracts; KTAC covers situations home owners probably will not. No insurance covers wear and tear or lack of normal owner maintenance casualty causes. I had KTAC cover an $8000 claim from working in the woods I doubt home owners would. It included rebuilding the HST due to overheating after losing the fan. It all boils down to risk aversion and coverage versus cost. KTAC is pretty cheap considering. I continued mine after paying off the loan.

Ron

 

[cold1313]

I'm assuming I could cancel KTAC at any time? As long as my home owners is on it.

 

[mljenkins]

On my NH the dealer got me a policy through Wesco Instance (aka C&H aka a bunch of other names and a real pain to get in touch with). I called them and asked them what they covered and they said it covered damage like rollover, dropping agree on it, damaging a tire, etc. Per thousand it is half of what KTAC is. So, I called my home owners who said they could get me a separate policy or maybe convert my homeowners into a farm policy. Both said they would cover the machine in transit also. My home owners is also about half by what my agent thought it would be (awaiting quote next week).

I’m not exactly clear what my current policy and the one my homeowners agent is looking into differs from KTAC, although KTAC is much more as I was quoted (however the deductible was half).

I’m having a hard time with the price of KTAC versus what I pay now. I figure since KTAC is Kubota the dealers probably get paid a lot faster with fewer questions. I’m still in the process of making a decision here as well, so I’d be curious what others experience has been with other policies other than KTAC.

 

[HillStreet]

This subject is timely. I paid off my loan last month (three years early)and was refunded the money from the remaining term. KTAC called me and asked if I wanted to renew, and after some hesitation I said no, that the tractor never leaves the property. She said that the insurance would cover any accidental damage.

I said in that case, I would have a claim right now---damage to the hood, bumper, bucket level indicator, grille. Long story short---she issued a claim number and the dealer is ordering the parts. Cost is the insurance and $250 deductible and it gets repaired. If all goes right, I will have a fixed tractor. I'll let you know.

 

[Rock Crawler]

I called and talked to KTAC after buying my used, out of warranty BX25D and asked about some scenarios. I live on very hilly and uneven terrain, my biggest fears are rolling the machine and damaging it, or bending/breaking the loader bucket/arms. Depending on the conditions around the accident, most all roll overs were said to covered as the nature of being an accident. The bucket and loader arms are a bit more questionable as it could be determined to be abuse or wear/tear from use. But a tree limb falling and crushing the loader/hood/me would cover the non me parts. So for only a few hundred dollars a year, I opted to add the insurance. I did also ask about other tractor brands, and the fellow told me that he does not care what brand it is, his company can insure it for accidental damage under the terms of the contract.

If I were to roll the tractor and do body/mechanical damage to it, and this is the most likely scenario, that $340 a year contract would be a huge plus. You can do big value damage really easy when rolling a machine. I have the ROPS up and seatbelt on at all times, it is the hard set rule. Hopefully my biggest issue if it were ever roll would be the machine and not my body. I feel that the KTAC plan is a wise choice for me and if ever invoked will likely end up saving me more than years of plan costs.

 

[mljenkins]

I called and talked to KTAC after buying my used, out of warranty BX25D and asked about some scenarios. I live on very hilly and uneven terrain, my biggest fears are rolling the machine and damaging it, or bending/breaking the loader bucket/arms. Depending on the conditions around the accident, most all roll overs were said to covered as the nature of being an accident. The bucket and loader arms are a bit more questionable as it could be determined to be abuse or wear/tear from use. But a tree limb falling and crushing the loader/hood/me would cover the non me parts. So for only a few hundred dollars a year, I opted to add the insurance. I did also ask about other tractor brands, and the fellow told me that he does not care what brand it is, his company can insure it for accidental damage under the terms of the contract.

If I were to roll the tractor and do body/mechanical damage to it, and this is the most likely scenario, that $340 a year contract would be a huge plus. You can do big value damage really easy when rolling a machine. I have the ROPS up and seatbelt on at all times, it is the hard set rule. Hopefully my biggest issue if it were ever roll would be the machine and not my body. I feel that the KTAC plan is a wise choice for me and if ever invoked will likely end up saving me more than years of plan costs.

Interesting they can insure other brands. So I assume that means KTAC is actually a kubotaized version of a generic equipment policy...?

 

[timswi]

Have KTAC on all three of my Kubota's...Thankfully no claims yet but the off property coverage is what I was looking for and it covers much more than homeowners either way.

 

[MessickFarmEqu]

On my NH the dealer got me a policy through Wesco Instance (aka C&H aka a bunch of other names and a real pain to get in touch with). I called them and asked them what they covered and they said it covered damage like rollover, dropping agree on it, damaging a tire, etc.

FYI, the stock coverage CNH uses is not as comprehensive as KTAC. Its much harder to make claims and get them paid, where KTAC seems to go out of their way to make things right.

 

[Rock Crawler]

Interesting they can insure other brands. So I assume that means KTAC is actually a kubotaized version of a generic equipment policy...?

That was how I understood it. He spoke as if the insurance plan may be owned by Kubota, but they can insure other brands just the same. It struck me as odd and neat. I can buy a brand XYZ unit and call KTAC? Heck yea... I'm in.

 

[Tractor Dell]

Messick's actually did a little youtube video on KTAC, and what it may cover Why You NEED Tractor Insurance (Kubota KTAC) - YouTube

 

[4570Man]

That was how I understood it. He spoke as if the insurance plan may be owned by Kubota, but they can insure other brands just the same. It struck me as odd and neat. I can buy a brand XYZ unit and call KTAC? Heck yea... I'm in.

That's surprising especially if the rates are the same. It cost Kubota considerably less to send parts than the price in the receipt.

 

[cold1313]

I subscribe to Messick's YouTube channel and have spoke with Neil. Very helpful. I was more looking to see the "con's" of KTAC - which I haven't been able to find any...which is good.

 

[mljenkins]

FYI, the stock coverage CNH uses is not as comprehensive as KTAC. Its much harder to make claims and get them paid, where KTAC seems to go out of their way to make things right.

Thanks for this, good to hear this from a dealer. I spoke to my homeowners agent today and it was going to be about $830 to switch to a farm policy and then another $180 for the tractor. Not bad to add the tractor I suppose if I was producing but I currently am not so the KTAC is less in that case. CNH was a real pain to get in touch with so I haven’t tried again.

I assume KTAC doesn’t cover commercial use or renting the unit out? However, what if you let a family member or close friend borrow it? Also was wondering if you were using it somewhere off your property say helping a friend or a volunteer organization (church, youth home, community farm, whatever) would it be covered. Guess I might have to ask these questions when I get further in the process. The reason I ask is being able to use the tractor to help others without having to pay for additional insurance would be a plus.

 

[cold1313]

I just got off the phone with my insurance agent - she personally just bought a new Kubota 2 months ago and reviewed KTAC vs their policy (they had a name for it, but written towards tractors) and she ended up not going with KTAC. Which I'm not really surprised but she said she was not able to see any difference between what KTAC covered and this policy written just for the tractor. It was also slightly cheaper. She's looking into it for me. I might get a discount since I will have 2 tractors added with my home and auto as well.

I was a bit surprised.

Not saying one is better than an other - but it might be worth your time to call your agent and ask. Or if you have a terrible agent, just go with KTAC. My small town agent is very helpful, so I'm glad I called. Not ruling out KTAC, but doing some homework never hurt anyone.

 

[Gator6x4]

I look for the KTAC insurance to soon become cost prohibitive. I base this statement on some of the claims I have heard that were made to KTAC. One needs to use equipment like they were the ones who purchased it, not like they stole it or borrowed it from a used to be friend. And when damage occurs, start looking for someone else or a insurance company to pay to repair the damage.

 

[mljenkins]

I look for the KTAC insurance to soon become cost prohibitive. I base this statement on some of the claims I have heard that were made to KTAC. One needs to use equipment like they were the ones who purchased it, not like they stole it or borrowed it from a used to be friend. And when damage occurs, start looking for someone else or a insurance company to pay to repair the damage.

I wonder if they have different coverage options with varying deductibles. That would probably help keep the cost down.

 

[Fallon]

Thanks for this, good to hear this from a dealer. I spoke to my homeowners agent today and it was going to be about $830 to switch to a farm policy and then another $180 for the tractor. Not bad to add the tractor I suppose if I was producing but I currently am not so the KTAC is less in that case. CNH was a real pain to get in touch with so I haven’t tried again.

I assume KTAC doesn’t cover commercial use or renting the unit out? However, what if you let a family member or close friend borrow it? Also was wondering if you were using it somewhere off your property say helping a friend or a volunteer organization (church, youth home, community farm, whatever) would it be covered. Guess I might have to ask these questions when I get further in the process. The reason I ask is being able to use the tractor to help others without having to pay for additional insurance would be a plus.

You would be wrong! KTAC covers your machine even if it's used commercially or off-property. I was rather concerned about that as I do side work with mine & am covered. My dealer indicated friends & family using the machine would be covered too. Not clear on renting it out as nobody but me wille be using my machines for hire. Family uses it on property. I really won't loan the tractor out to friends either, I go with it & they owe me (and usually cover running costs). I'd confirm all those details with KTAC though.

I looked for KTAC alternatives when I got my L3200. My homeowners policy was happy to charge me more than KTAC for non-commercial only on-property only coverage with a higher deductable. Pretty much worse in every possible way.

I've heard nothing but good about KTAC, but personally have never had to use them. I hear some people can find cheaper coverage than KTAC, but that's about the only potential negative I'm aware of.

 

[bspeedy]

I subscribe to Messick's YouTube channel and have spoke with Neil. Very helpful. I was more looking to see the "con's" of KTAC - which I haven't been able to find any...which is good.

I can give you a con of any insurance. You pay out with no guarantee of recouping anything. My goal is to self insure on anything up to about 10 grand, including the house. If you look at severe tractor damage, most of it is preventable or at least largely avoidable. A 'total loss' situation is very rare. For example, my tractor is worth about 15k. If I drop a log on it damaging the hood and grille with the headlights, damage would probably be over a grand for new parts. Would the old hood still cover the engine? Sure. Would it still work (with a little beating)? Of course. If I were so picky that I could not stand the ugly old hood and grille, would I be able to buy brand new pieces for the price of 5 years of KTAC? Probably.

I guess my point is - use your car / tractor / equipment with care and skip the extra insurance. Save the money. If something happens and it needs fixed, write the check with the money you've saved. No paperwork, no begging an insurance company for help, no justifying, persuading, etc. You have full control of the situation without a third party.

Insurance is a nearly guaranteed loss for the insured. Add up the $$$$ you've spent in your life on insurance and add up your claims. You (and I, and almost everyone else) are thousands of dollars behind. Only people in special circumstances - hurricane damage, floods, 80k vehicle that is a total loss, home completely destroyed by fire - recoup their money and then some. Insurance companies are wildly profitable.

 

[NBKubota]

^ A few things I think you're missing (don't get me wrong, I'm no fan of insurance companies) but there are many instances where you must have insurance.

For instance, if you have a mortgage, unless you have enough money to pay out a total loss (in which case I suppose you wouldn't have a mortgage), you'd be required to have home insurance. For vehicles, on public roads at a minimum usually you are required to have third party liability. To get a loan to purchase my tractor, Kubota required proof of insurance (didn't have to be their insurance, just so they were covered in case I wrote it off).

I think in a lot of instances nowadays, people have insurance that can save your butt in the case of a lawsuit.

Again, I'm no fan of insurance companies, but for certain instances it's usually mandatory, and in a lot of cases, even just peace of mind (lawsuits etc).

Would be nice to be in a position to self-insure, but I don't see that happening, at least for myself!