when to let go of tractor insurance

[dnw64]

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.

I mean not to be the least bit offensive, but I guess I would have to place you in the Pessimist Camp. BTW, I believe everyone is either an Optimist or a Pessimist. And neither is better than the other, but you do have to realize that it affects many fundamental decisions. Such as whether/how much insurance to get*.

You have assumed that there WILL BE a TOTAL LOSS, and figure that insurance is cheaper than new tractor. How many people with a tractor NEVER have a loss of any sort, let alone a COMPLETE loss? BTW, the insurance companies could tell you that. They know all the nitty gritty details.

*I finally got life insurance. Not because I need it(!!), and frankly my wife doesn't need my life insurance either. But it gives her peace of mind, so I spend the $2500/year and it makes her happy. Happy Wife = Happy Wife.

 

[oosik]

dnw64 - In todays society - if you have nothing to loose then why insure it. If you have a great deal to loose - better have it covered.

 

[LD48750]

The insurance industry has a bunch of good salesmen.

 

[dnw64]

dnw64 - In todays society - if you have nothing to loose then why insure it. If you have a great deal to loose - better have it covered.

Problem is determining exactly where what you have falls. It's rarely black and white.

 

[ovrszd]

Problem is determining exactly where what you have falls. It's rarely black and white.

It's my belief there are to camps. Not pessimist/optimist. Rather, those that have had a catastrophic loss and those that haven't.

I also carry replacement insurance. Nine years ago I had a $194,000 insurance claim. I smile all over when I think of my insurance premiums.

 

[murph1]

I insure everything that will guarantee nothing will happen to it. Being a Murphy I am a pessimist.

 

[ovrszd]

I insure everything that will guarantee nothing will happen to it. Being a Murphy I am a pessimist.

You're the most optimistic pessimist I know Murph....

 

[majorwager]

Insurance for Preventable incidents. Unloading tractor on hill, rear truck wheels lifted off ground contact, you can see result. This photo imported from another site. No clue where incident occurred.

 

[ovrszd]

That will not buff out.....

 

[bdog]

It's my belief there are to camps. Not pessimist/optimist. Rather, those that have had a catastrophic loss and those that haven't.

I also carry replacement insurance. Nine years ago I had a $194,000 insurance claim. I smile all over when I think of my insurance premiums.

Unless you are a multi millionaire it would be foolish not to insure something that is 194k. Tractors come in all price ranges but say you buy a new 20k tractor. After several years it is worth 10-15k. If that amount of a loss would be catastrophic to you then yes insure. If it isn't, and your risk is low then maybe don't. Some people leave their tractors at remote properties unattended. Others keep them locked inside a shop with an alarm system in their backyard. Some people have crazy terrain and the likelihood of an accident is greater than those with flat ground. Maybe flooding is a concern. Maybe it isn't. Lots of variables come into play.

I don't insure my tractor. The risk of something happening to it and the cost to replace it if something did don't scare me. I do have an inland marine policy with over a million in listed items that I do worry about because of their cost, and the fact they travel to remote locations.

 

[tjkubota93]

Insurance for Preventable incidents. Unloading tractor on hill, rear truck wheels lifted off ground contact, you can see result.

Wow, were you injured?

 

[ovrszd]

Unless you are a multi millionaire it would be foolish not to insure something that is 194k. Tractors come in all price ranges but say you buy a new 20k tractor. After several years it is worth 10-15k. If that amount of a loss would be catastrophic to you then yes insure. If it isn't, and your risk is low then maybe don't. Some people leave their tractors at remote properties unattended. Others keep them locked inside a shop with an alarm system in their backyard. Some people have crazy terrain and the likelihood of an accident is greater than those with flat ground. Maybe flooding is a concern. Maybe it isn't. Lots of variables come into play.

I don't insure my tractor. The risk of something happening to it and the cost to replace it if something did don't scare me. I do have an inland marine policy with over a million in listed items that I do worry about because of their cost, and the fact they travel to remote locations.

Good points.

So, if I have a $10K tractor that I can afford to replace and a $6K tractor that I can afford to replace and a $20K truck that I can afford to replace, and a $25K Jeep that I can afford to replace and a $15K Jeep that I can afford to replace and $10K of ATVs that I can afford to replace and $50K of tools that I can afford to replace and a $50K building that I can afford to replace all parked in the same spot should I insure them all or just selectively?

 

[ovrszd]

I learned in Vietnam to disperse your assets. In my world today they are consolidated. Makes me vulnerable to catastrophic loss. To say I canafford to lose an individual item that is collectively stored is flirting with disaster.

 

[bdog]

Good points.

So, if I have a $10K tractor that I can afford to replace and a $6K tractor that I can afford to replace and a $20K truck that I can afford to replace, and a $25K Jeep that I can afford to replace and a $15K Jeep that I can afford to replace and $10K of ATVs that I can afford to replace and $50K of tools that I can afford to replace and a $50K building that I can afford to replace all parked in the same spot should I insure them all or just selectively?

Good point. If they are all in one shop and it burns you are screwed. I am one of those people who didn’t build a large enough shop in the beginning. Aside from my garage I have three shops and three lean-tos at my place. The odds of something happening to everything are low. Please don’t misunderstand me I am not against insurance, I just like to evaluate the costs and risks relative to my financial situation. Heck with my small business, rent houses, and personal policies I spend over 25k a year on insurance. My house and all my vehicles are paid for yet I maintain full coverage on all of them. To me the cost is worth it. Cars get wrecked and stolen all the time. My tractor I don’t insure.

I suspect many on this forum own tractors that are way out of line in my opinion with their total financial picture and thus insuring them makes sense. By that I mean unless you are using your tractor to make a living I think spending more than 2-3 months income on a tractor is nuts. My tractor is nearly 40 years old and cost less than a months income. If it exploded tomorrow it would suck but it wouldn’t seriously impact my life.

 

[Tractor Seabee]

I have not read all the posts on this; but, on the OPs original question; I have always carried casualty insurance on stuff as long as their $ value exceeds what I believe unreasonable for me to assimilate. This will vary by personal preferenes and finances. I have a 1994 pickup worth about $1K. I stopped carrarying casualty insurance once the value dropped to $5K. Liability and PD are a whole different exposure and not related to this discussion.

Ron

 

[buickanddeere]

Same company as your home, property, vehicle and life insurance to obtain the discounts .

 

[Ritothebull]

I would probably carry insurance on more of my things if the insurance companies were the way they were 30 years ago, before they all turned into banks and got greedy. Some things were so cheap to insure that it wasen't even a consideration I just did it, now its gotten so complicated and with all the exclusions it's not even worth it most of the time in my case.