when to let go of tractor insurance

[Thomas]

I have coverage thru home owners from start to finish no matter how many years...all it takes is one oops About $125.oo year.

 

[Gem99ultra]

I suppose we all have the same decision to make, assuming that we financed our purchase. I carried the KTAC insurance during the loan payback period, and WOULD have continued to carry their policy afterwards. But their rate jumps up after the loan is paid off! In fact, it jumped up something like 33%, in spite of my never having a single claim. I called them to discuss their error, but had zero success in continuing their previous policy rate. I seems that a tractor that's 3 years old would have cheaper insurance than a brand new tractor - but that thinking doesn't exist at KTAC.

Having met with that illogical thinking, I discussed coverage with my home owner's insurance company. And yes, the tractor and all of the implements are fully covered under the HOI policy. They're also covered for liability when being transported on my trailer. Now if there is damage or loss off my property otherwise, they are not covered. Since I rarely move my equipment from my own property, leaving coverage to my HOI policy was/is the logical choice.

 

[ovrszd]

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. ;-)

Your calculation doesn't account for the monthly payment on the replacement tractor. The interest portion is irrelevant.

 

[buckeyefarmer]

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.

Erie said they cover my tractor, kept at home.

 

[BHD]

remember the value of the tractor, insurance normally will not replace with with new, only to the point of what they value it at,

so if your paying to insure your $25,000 tractor, and do to depreciation your tractor is only worth $12000, insurance will only pay you for the $12000, not what you payed for it,

so look closely to what the policy covers,

most here only cover the tractor while there is debt against it, bummer to pay for something you do not have,
on my farm I have a blanket policy, that covers up to $XXXX and is said to at least 75 % of the value of the things listed, in the blanket,

unless a massive tornado or a massive wild fire comes through, the chances of two tractors, combine, shop contents, and machinery, will all be lost at one time,

last year a wild fire did come close and one neighbor (big farmer), lost house, barn and new machine shed with tractors forklift, planters, trucks and other in it, they got the combine moved, and the massive sprayer moved, but the grain cart out was burnt or its tires were burnt off, lost a semi truck and trailer, melted it to the ground,

two small steel buildings saved, and two grain bins, and this place had no trees, or grass over 2 inches about it for 200 feet, but 70mph winds and fire do not mix,

 

[Rmart30]

The yearly Ktac premium is less than what one months payment cost on the tractor. Its covered anywhere, anytime. I figure its well worth it.

 

[Texasmark]

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

I have State Farm homeowners and it covers my dwelling, this and that, and personal property which is at least 40% of the"replacement value" (which is what insurance premiums are based upon, not current value like what is on the ad-valorem tax rolls of the residence.

Tractors are considered personal property. My discounts for being a return customer and all are 1.5 or more times the best advertisements I have seen on TV from other companies.

One thing I can't understand is how one apparently popular company can advertise everywhere (stuffers in most all printed mater that dis-graces your mail box included) and still claim to be a little cheaper at least, than everyone else.

 

[Jstpssng]

I have State Farm homeowners and it covers my dwelling, this and that, and personal property which is at least 40% of the"replacement value" (which is what insurance premiums are based upon, not current value like what is on the ad-valorem tax rolls of the residence.

Tractors are considered personal property. My discounts for being a return customer and all are 1.5 or more times the best advertisements I have seen on TV from other companies.

One thing I can't understand is how one apparently popular company can advertise everywhere (stuffers in most all printed mater that dis-graces your mail box included) and still claim to be a little cheaper at least, than everyone else.

If you are talking about the one I'm thinking of, with a lizard running around- I found that they came in just slightly over what I'm paying now- for a six month policy rather than my current yearly rate.

 

[LouNY]

One thing to be aware of as far as your insurance, is liability, plowing snow at the end of a driveway where you get out on the road and I never asked but I would assume it would be the same when mowing along the road is if you are covered.
My normal home owners liability did not and does not cover me off the property on the tractors. So if you back out and cause an accident you may very well not be covered, I have a farm rider which covers me for liability anywhere the tractor is, on the road, at a neighbors, even going to town if I wanted to. In addition I have a collision type rider that covers accidental damage or theft, vandalism ect.

 

[Jstpssng]

One thing to be aware of as far as your insurance, is liability, plowing snow at the end of a driveway where you get out on the road and I never asked but I would assume it would be the same when mowing along the road is if you are covered.
My normal home owners liability did not and does not cover me off the property on the tractors. So if you back out and cause an accident you may very well not be covered, I have a farm rider which covers me for liability anywhere the tractor is, on the road, at a neighbors, even going to town if I wanted to. In addition I have a collision type rider that covers accidental damage or theft, vandalism ect.

That's why I brought up the lack of liability on marine policies.

 

[Code54]

Erie said they cover my tractor, kept at home.

We also have Erie and they said they will not cover my MX5100, BX25 or mini ex and only cover a little riding tractor. We have an inland marine policy also and it is fairly cheap - around $300 for the machines and implements.

 

[Tractor Seabee]

In addition to everything else I carry a $5M blanket liability w/100K property damage that covers everything I do anywhere I am. It is very cheap when you have a Auto and HOI policies with the same company. Todays court awards are scary. You can get sued over anything it seems. One claim can wipe you out for life and put you on the street.

Ron

 

[oosik]

That IS a chunk of change. My homeowners policy(State Farm) covers my tractor and implements while on my property. That's all I need because the tractor never leaves my property.

 

[Storm56]

We also have Erie and they said they will not cover my MX5100, BX25 or mini ex and only cover a little riding tractor. We have an inland marine policy also and it is fairly cheap - around $300 for the machines and implements.

I do not post much anymore because I do not like to type, but there is misinformation here that I can just not let slide.

I owned an Erie Insurance agency for 22+ years, have sold it and retired 6 years ago.

For starters Erie has 3 levels of home policies, for simplicity I will refer to them as basic, mid, and premium. The basic and mid cover personal property on a NAMED peril basis, think fire, lightning, theft, vandalism etc. The premium covers personal property on an ALL RISK basis, with only the named exclusions, acts of war, nuclear perils, intentional acts, earthquake and one or two others that may escape me at the moment.

Erie does not in ANY manor limit what you can use to maintain your property so the comments about they would not cover my BX etc are simply wrong. During my tenure as an agent we paid several claims where policyholders had losses on very expensive tractors from fires etc.

What is limited is BUSINESS personal property, things you make money with. So if you charge your neighbor to mow his field or dig a ditch, all bets are off. There is then a limit of $5,000 for BUSINESS personal property.

Now personal property has a limit which is stated on your policy. In the event of a total loss there is a distinct probability that you could exceed that limit and perhaps fall short but you can increase that limit to be sure you are covered.

Erie covers you for liabilty and physical damage on and off your premises. Where the misunderstanding comes in is dependent on what level of policy you have, remember when I referred to basic, mid and premium? Basic and mid policies will not cover your tractor if you are towing it and run off the road, however the premium one would.

I have 4 tractors, the biggest is an 80 HP 4WD and numerous attachments, and I do not have any riders for them. I do not use any of them for business. I do favors for friends and neighbors but will not accept any money. I have a premium policy and sufficient personal property coverage in the event of a total loss.

There are agents out there looking to get all the premium dollars they can, and some that just do not know their business. Covering an expensive tractor on an inland marine rider is not a bad thing, but not always necessary.

 

[Jstpssng]

I do not post much anymore because I do not like to type, ...

...There are agents out there looking to get all the premium dollars they can, and some that just do not know their business. Covering an expensive tractor on an inland marine rider is not a bad thing, but not always necessary.

Will you have liability coverage though? It isn't a point for some; yet even if you plow your driveway, you are spending time in the road.

 

[Storm56]

Will you have liability coverage though? It isn't a point for some; yet even if you plow your driveway, you are spending time in the road.

I covered that, yes you have liabilty coverage on and off premises. Most insurance companies have a clause that spells this out and in that clause is a statement referring to "vehicles subject to motor vehicle registration". Tractors are not subject to that. They will also specifically name items that they will NOT cover such as ATV's, UTV's, motorcycles, snowmobiles etc.

 

[Jstpssng]

I covered that, yes you have liabilty coverage on and off premises. Most insurance companies have a clause that spells this out and in that clause is a statement referring to "vehicles subject to motor vehicle registration". Tractors are not subject to that. They will also specifically name items that they will NOT cover such as ATV's, UTV's, motorcycles, snowmobiles etc.

Thanks. My marine policy did not have it, which is why I dropped it and put it on my commercial auto policy.

 

[Storm56]

Do not forget, the bulk of my posts refer to personal use! Business is another matter!

 

[Storm56]

Thanks. My marine policy did not have it, which is why I dropped it and put it on my commercial auto policy.

You may want to check that a premium is being charged for liabilty on your tractor, if not then you do not have it. I could not do that in PA. Liability for a piece of equipment came from a BOP, business owners policy.

 

[big bubba]

thanks for all the informed replies. going back to my original post, have decided to let go of my $441 annual premium as the tractor is in a secure place, don't work in woods, non commercial use, etc. my homeowners will not cover as the tractor is not used @ my primary residence.
of course each situation is different, & a matter of personal choice. tractor long since paid off.... thx again for the responses