Comparison Choices, Choices, Too Many Choices

[4570Man]

There is, my signature.
I buy it I say I will pay for it.
Something happens to it while I own it, doesn't change the FACT I agreed to pay for it.
So I continue to make loan payments and STILL don't make insurance payments that would have continued for the rest of my life. (or at least until I sold the tractor)

That doesn’t mean most people will. They’d be crazy to give you a new tractor and hope you pay them.

 

[Diggin It]

The point is, insurance is a gamble. All insurance, auto, home, medical, tractor, crop or any other flavor. You pay a premium gambling you won't have a loss, but if you do, they'll cover it. But we all know that insurance companies are experts in finding reasons not to pay off claims. If you don't have a loss, you lose all those months or years of premiums. If you do have a loss, will it meet or exceed the premiums you've paid.

Homeowners here would have cost me $1,000 - $1,500/year for the last 20 years. I've had no losses that would have exceeded the deductible of $2,500 or $5,000 during that time, or in the 20 years prior in another state. I have had a couple of lightning strikes that cost me $500 or so in smoke electronic items. So, what would I have to show for that $20,000 - $30,000 in premiums? Instead, I've been able to save and invest that amount so that it could grow and do more for me. That amount alone is now worth close to double.

If a major loss happens, tornado, fire, etc., I'll have the assets to be able to do most of what needs to be done. Not all, but enough to get by.

This is not an expensive, elaborate house. It could be rebuilt to livable for under $50K, though every insurance quote I've had insists on a $150,000 rebuild cost which is part of why the premiums are so high.

It's a tactic known by some as self-insuring.

The wild card is liability if someone slips, trips, falls or whatever. To combat that, the property is fenced, hedged and gated all the way around. Even delivery people can't get on the property unless I escort them. If you're here without my knowledge, you're trespassing and you may not be able to file a claim. No, there is no family and I generally do not have visitors. Which is one reason I need machinery to help me do tasks.

As noted, if something happens to this machine, I may still have to make the payments, but I won't have had to pay an extra $15-20/mo for insurance.

Now, perhaps we can get back to tractors? Because, I'm sure I'm going to need a lot of help once this thing arrives. I've never owned a diesel nor anything with this level of hydraulics.

 

[Diggin It]

That doesn’t mean most people will. They’d be crazy to give you a new tractor and hope you pay them.

But they did. Unless something unexpected comes up tomorrow when I sign at the dealership. He told me this company never even asks about insurance on the loans for machines he's sold. I talked to the loan company myself. I didn't ask about insurance directly, but the tone they used was that they don't even worry about these kinds of amounts. This is a large agricultural loan company that deals with million dollar loans and lines of credit. $20K sounded like it wasn't any level of worry for them. They never even asked about income or any kind of verification of income at all, nor about any other assets or ability to pay. They saw my 800+ credit rating and never even looked twice.

If someone defaults, I'm sure they have ways to getting their money.

 

[Diggin It]

Met with the dealer today and went over the paperwork before signing. There IS mention of insurance in the terms, but they don't ask for proof. If they make an issue of it later, I can get Homeowners with just a phone call from the agent I get my car insurance through, so it's really not a big deal. I just didn't want to pay extra on the loan if I didn't have to.



Oh, and the payment turned out to be about $10-15 LESS per month than we were figuring.

 

[atsah]

I figured it had to ask somewhere.. I'm not concerned whether someone has insurance or not, that's your choice..

Let us know how you like it, 24.7hp yanmar, I like that about it already..

 

[rngrrymd]

Met with the dealer today and went over the paperwork before signing. There IS mention of insurance in the terms, but they don't ask for proof. If they make an issue of it later, I can get Homeowners with just a phone call from the agent I get my car insurance through, so it's really not a big deal. I just didn't want to pay extra on the loan if I didn't have to.



Oh, and the payment turned out to be about $10-15 LESS per month than we were figuring.

CNH Financial wanted proof of insurance from me when signing the paperwork for the loan. Your homeowners will cover some basic insurance but usually won't cover rollovers, mice chewing on wires, etc. I'd recommend you call your agent now so it doesn't hold up your loan and tractor delivery.

 

[coobie]

Met with the dealer today and went over the paperwork before signing. There IS mention of insurance in the terms, but they don't ask for proof. If they make an issue of it later, I can get Homeowners with just a phone call from the agent I get my car insurance through, so it's really not a big deal. I just didn't want to pay extra on the loan if I didn't have to.



Oh, and the payment turned out to be about $10-15 LESS per month than we were figuring.

I would venture the say this will be same as a car loan.They will want proof of insurance same as a car loan.Banks/credit won"t lend money without it because they want to get paid back.Maybe I am wrong?

 

[4570Man]

CNH Financial wanted proof of insurance from me when signing the paperwork for the loan. Your homeowners will cover some basic insurance but usually won't cover rollovers, mice chewing on wires, etc. I'd recommend you call your agent now so it doesn't hold up your loan and tractor delivery.

My insurance agent said the homeowners would pay if the machine burnt or was stolen. I’ll add separate insurance eventually because I want to use it off the property but total loss is really all I’m worried about.

 

[paulfun9]

The problem with insurance is that ever since the law mandated that we can not have stated value policies the insurance companies steal more from us by inflating the risk factor, the value and the rebuild costs artificially and we have no alternative but to pay it.
If your willing to take the risk and invest the insurance costs you could be like some of us who have actually set aside more than enough to cover any loss and actually get paid dividends from the investments on a yearly basis.
Do the math carefully and weigh he risks but keep in mind that most never get paid a cent from thier home owners policy and those that do usually only see a drop in the bucket compared to what they pay in over thier life.

 

[atsah]

but keep in mind that most never get paid a cent from thier home owners policy and those that do usually only see a drop in the bucket compared to what they pay in over thier life.

This is true but IF you have a total loss, like your house burns to the ground and you have no insurance your in big trouble.. As far as people putting the money aside that they would have paid an insurance company, that doesn't happen very often..

If I put away all the money I have paid insurance company's over the years, I could build a new house, but I haven't and neither has 99.9% of anyone else.. The percentage of people that put the money aside was higher years ago but not anymore..

0% down, 84 month financing, adding implements etc, says something about this day and age.. Not many people save money anymore..