when to let go of tractor insurance

[Fallon]

Liability and property insurance are two completely different animals. I would carry as much liability insurance as you can afford.

With property insurance it comes down to what you can afford to replace and your perceived risk of something happening and this holds true regardless if it is a car or tractor. There were times in my life where I had full coverage on a $4000 pickup because if something happened it would have been devastating to me but now I don’t have property insurance on my 25k tractor because it wouldn’t ruin me to have to replace it. It would stink if something happened to it, but I feel the risk of something happening is very low and I am capable of paying for it in the event it did.

Insurance is a transfer of risk and the insurer charges you for this. The decision on if it is a good choice or not varies from person to person and the value of the item being insured relative to your financial picture.

Yup. Dead on for pretty much all points.

 

[Beltzington]

Insurance isnt worth it when you can afford to replace the item yourself. So if loosing the machine & having to replace it wouldn't bankrupt you or severely impact your life, its not the economical solution in the long run.

Insurance companies are gambling that bad things won't happen to you at rates that pay out more than you pay in on average. They also need to make profit on the transaction & cover their overhead. So if you self insure, in the long run, you pay less overall.

Making payments on a new tractor or buying a new one outright might suck, but if you can reasonably afford to do that if required the odds are you will come out ahead. No guarantees on those odds, but it's better than Vegas.

I have KTAC on mine, but will likely drop it when it's paid off. I never get insurance on any thing under 5 figures... computers, appliances, tools, etc. I can afford to replace them if need be & in the long run I will statistically (not guaranteed) come out ahead. Plus dealing with insurance companies sucks (KTAC MUCH less than the rest though).

Liability is different. Not only are you legally required to have it in many cases (automobile). But most of us can't afford to pay out $100,000 to a million or more. So an umbrella policy for the house & general life stuff or a commercial liability policy makes sense.

I have out smarted myself with the same logic and lost so I always carry replacement coverage on any of my vehicles worth more than 10-years annual insurance premium. Do the math, it will take you 80+ years to replace a $25K tractor to save $300 per year on insurance. And unfortunately you are not going to finance a $25K tractor for $25/month and you will still be required to carry insurance. Ask yourself how you are going to feel about your choice to drop coverage if your tractor is stolen the following month. If you have a 1000 vehicles you may start to benefit from the statistical averages but the typical owner has no way to play the odds. Good luck with your decision.

 

[YLee Kioti]

I have 2 tractors and hay baler on my home and farm policy for less than 200 bucks a year . Farm Bureau

^^^^what he said!^^^^^^^
I got all implements and Mr. Kioti with our lil barndominium......around 723 a year w/Farm Bureau .....

 

[Code54]

It is just too cheap to not have the insurance on something like tractor/etc. You really have to shop around but there are some fairly reasonable deals out there. I just looked and when I added my 2015 Kubota KX91mini Ex to my inland marine policy it cost an additional $81 a year. That to me is worth the piece of mind to not have to worry if the building burns down with my machine stored in it. Between my tractor and mini Ex the loss would be big, way to big to risk for a a few hundred bucks a year. My biggest concerns are fire and theft but having the additional coverage is nice!

 

[TractorNH]

To all who rely only on their homeowner's policy remember, it only covers listed perils. If it is stolen, catches fire, a tree falls on it then it would be covered if those are listed perils. The damage WOULD NOT be covered if you roll it over and destroy your cab or bend your loader in the process (or any other damage from the use of it). Damage resulting from use or operation of the tractor WOULD NOT be covered. You crash it into your house, your house is covered for repairs, the tractor is not.

Since I don't use my tractor exclusively on my own property I searched for an inland marine policy and got quotes but the best coverage I found was a State Farm "Personal Articles" policy. It covers a $40k tractor with replacement cost up to the insured limit with a zero deductible for just under $500/yr. With a $500 deductible the premium drops to about $370/yr. Covers everything about the tractor except mechanical breakdown (though if a fuel leak caused a fire it would be covered since fire is a covered peril). This does not provide any liability coverage, only the tractor itself. As a first-time owner of a cab tractor I opted for the zero deductible at least for my first year because glass is expensive.

The "Personal Articles" policy is like a catch-all insurance that State Farm offers. My agent told me not only could I add implements but I could insure other high value items such as computers, jewelery, or even guns.

 

[oosik]

I will offer another example of insurance need or not. We came down from Alaska in '82 and built our PanAbode cedar home here that same year. Never owed a single penny on either the land or house. The house is insured thru State Farm. Even though the house was paid in cash, as it was built - I have never considered cancelling my homeowners policy with State Farm. Thirty six years here - no claims - still keeping the homeowners policy in force.

You want to take the risk on your tractor - be my guest. Just don't cry if something bad happens. Consider all the $$$$ saved.

 

[Groo]

I would hope a tractor would survive a tree fall reasonably well and at least be still functional. Keeping a 20lb extinguisher should be enough protection against fire. Not tons of theft around here, and I haven't heard of any tractor theft, but I supose it happens.

 

[majorwager]

Consider this: Generally the Homeowner's policy declared perils cover circumstances beyond one's own cotrol. ( fire, theft, vandalism) ect.

If you are so inclined to operate in a deliberate irresponsible manner and rollover the tractor, fell a tree upon it or drive it into a building, then you need inland marine coverage. Just because you did NOT intend the consequence, does Not mitigate the FACT that the operator placed the tractor in a position for the "Accident" to occur. Stupidity is however, insurable.

Insurance policies differ from state to state. There exists policies w/ greater degrees, (preminm) coverage. Coverage and Cost enjoy a direct correlation. Take Chubb as an example, just as good as Loydes of London.


Discuss they coverage you need w/ your agent. Weigh the options and costs. Tractor cowboys will and should pay more. No disrespect to genuine cowboys.

 

[Ritothebull]

I don't have insurance on my tractor so I don't park it under a tree.

 

[ovrszd]

I don't insure my equipment to protect it against me. I insure to protect it against others and Mother Nature.