when to let go of tractor insurance

[big bubba]

am interested in hearing from forum members when they feel annual tractor insurance is no longer needed. currently have M8540 hd12 sp open station that i've insured w/KTAC for 10 yrs since purchased new. long since paid off. very pleased w/KTAC. never filed a claim. they rate the machine around 28k. am currently paying $440/yr for the policy. use is non commercial approx 100 hrs/yr. & not in the woods, etc consider myself a safe operator, park it in a secluded non threatening place, am on good terms w/neighbors.

$440 is a chunk of change. am interested in your own situation and @ what point one might let the policy go.... of course insurance is a gamble & can be looked at as "peace of mind"..... but what are your considerations for continuing your insurance through the years in a low risk circumstance when the machinery is paid off....
thanks in advance

 

[M5farms]

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

 

[Peter 315]

I think your home owners insurance will cover it on your property

 

[DK35vince]

I think your home owners insurance will cover it on your property

Many don't.
My homeowners will cover 1 lawn mower up to $5000.

 

[DK35vince]

I have an Inland Marine policy on the tractor.
Covers the tractor, the loader, the backhoe, all my other attachments and zero turn mower for $164/year.

 

[Fallon]

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.

 

[Jstpssng]

I have an Inland Marine policy on the tractor.
Covers the tractor, the loader, the backhoe, all my other attachments and zero turn mower for $164/year.

If I'm not mistaken that doesn't include liability insurance.

 

[Peter 315]

Many don't.
My homeowners will cover 1 lawn mower up to $5000.

I think its covered under personal property That's what I was told by liberty mutual ins

 

[Tx Jim]

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

What's the $$$$ value of your equipment that's insured for less than $200?

 

[LouNY]

I have my tractors on a farm policy for the liability as it covers me on the road between farms ect. and $45,000 in equipment coverage changed my premium about $200 a year on my home owners, using a local co-op ins. company

 

[DK35vince]

I think its covered under personal property That's what I was told by liberty mutual ins

I asked this question to my insurance agent (Erie insurance).
I was told my homeowners policy would cover 1 lawn mower up to $5000 only.
So I have my tractor, attachments and zero turn under an Inland Marine policy.

 

[Peter 315]

The insurance companies are all different:confused3:

 

[big bubba]

thank you for quick replies. am just trying to weigh tractor insurance along w/ health, auto, & homeowners policies. again, not a commercial operation
in retirement, just looking @ tractor liability vs the other financial demands when one simplifies @ this stage of life

 

[M5farms]

What's the $$$$ value of your equipment that's insured for less than $200?

60k 74 jd 04 nh and 07 baler. They are all paid for but I do hay and a fire could wipe em out pretty quick.

 

[ovrszd]

I have an Inland Marine policy on the tractor.
Covers the tractor, the loader, the backhoe, all my other attachments and zero turn mower for $164/year.

Ditto.

 

[ovrszd]

60k 74 jd 04 nh and 07 baler. They are all paid for but I do hay and a fire could wipe em out pretty quick.

In regards to my machinery. If I can replace it immediately without financial burden I don't insure it. If replacement would cause me a burden, i.e. debt, it gets insured.

 

[Fallon]

In regards to my machinery. If I can replace it immediately without financial burden I don't insure it. If replacement would cause me a burden, i.e. debt, it gets insured.

By my figuring, potentially paying interest to finance replacement equipment isn't going to be much if any more than what the insurance company will be making off my insurance payments. I suck at math though, so take that with a grain of salt. ;-)

 

[Tractor Seabee]

There have been many threads on this subject. You see prices all over the map. KTAC covers a lot more than fire and theft. My home owners would be cheap but that is all it covers. The $8K damage claim for damage incurred working in the woods would not be covered by HOI, but KTAC picked it up in whole minus the $250 deductible. I could not have afforded that at the time. I would had to haywire it together.

On this subject we need to compare what is covered for the price to make a rational decision. That's what I did when I was deciding to keep KTAC after it was paid off.

Ron

 

[Jstpssng]

I guess that I would never make it in Vegas; the prospect of replacing 60k worth of equipment out of my pocket would keep me paying the premiums, albeit with a high deductible. I also wouldn't even consider going without liability, which is why I switched from a marine policy.

 

[WM75Guy]

Everything we have is paid off. It costs me about $300 for all my tractors, Kawasaki Mule, ZTR, and implements to be on the Texas Farm Bureau Ag policy. It is mainly for theft protection.

I am also a member of the Texas & Southwestern Cattle Raisers Association, even though we have horses. I like having their blue sign at the driveway entrance as a deterrent. They employ 30 Special Texas Rangers who are state licensed peace officers for the sole purpose of investigating crimes against members. Similar to what the railroads did in hiring Pinkerton for protection. Interviews with criminals have shown they will bypass TSCRA members property because they know the Rangers will be coming after them.