Kubota Insurance

[MACflyer]

I'm planning to purchase a new RTV1130 UTV for use around the farm. Kubota is requiring insurance on it since it will be financed. Their insurance is about $30/month which seems awfully high for something that will never leave the property or see a public road. I called my insurance company and they wouldn't cover it under my homeowners policy, but offered to cover it under my auto policy for $35/month. Is that really the going rate for an off road vehicle?

 

[CH4Ohio]

This is a question -- not a statement -- I'm curious about this.

Isn't the Kubota insurance just to cover damage or theft / loss of the vehicle? In other words, it protects Kubota's interest in the property.

Isn't the proposed auto coverage also covering personal injury to anyone hurt on the vehicle?

Seems to me that the potential liability for the two coverages is likely very different. So many kids are getting hurt on ATVs that insurance companies are probably leery of covering them. ??

What are the "limits" on the proposed auto policy coverage? I'd think you could adjust those to reduce the premium if you feel that's appropriate.

 

[JeepHead]

I covered my new Kubota tractor on my home owners insurance for $170 a year. That's replacement insurance and not pro-rated. It covers accidental damage as well such as if I were to bend the loader, rip the axle out etc.

 

[MACflyer]

This is a question -- not a statement -- I'm curious about this.

Isn't the Kubota insurance just to cover damage or theft / loss of the vehicle? In other words, it protects Kubota's interest in the property.

Isn't the proposed auto coverage also covering personal injury to anyone hurt on the vehicle?

Seems to me that the potential liability for the two coverages is likely very different. So many kids are getting hurt on ATVs that insurance companies are probably leery of covering them. ??

What are the "limits" on the proposed auto policy coverage? I'd think you could adjust those to reduce the premium if you feel that's appropriate.

You're correct on the difference in coverages. The limits are at minimum allowable, so I can't reduce the auto quote any further.

 

[MACflyer]

I covered my new Kubota tractor on my home owners insurance for $170 a year. That's replacement insurance and not pro-rated. It covers accidental damage as well such as if I were to bend the loader, rip the axle out etc.

May I ask who you have for homeowners? I'm with USAA and they said they won't cover a motorized vehicle under homeowners if it can exceed 15mph.

 

[JeepHead]

May I ask who you have for homeowners? I'm with USAA and they said they won't cover a motorized vehicle under homeowners if it can exceed 15mph.

Farmers Insurance is who I used.

 

[KCTractors]

Farmers Insurance is who I used.

Will they cover the tractor on a public road, most will not.

 

[JeepHead]

Will they cover the tractor on a public road, most will not.

Not sure that I asked that specific question. I ran several scenarios to my agent who answered them all. Finally her response was it covered absolutely ANYTHING that can happen to my tractor. Any loss of it from partial to complete would be covered at new replacement value. She never said anything about driving it on the road. Which I don't do anyways.

 

[Kioti Sal]

I have the Kubota insurance on my BX and the Kioti insurance on my CK. I cant remember the details for the Kioti, but the Kubota dealer told me it covers any damage to the machine no matter the reason. Car side swipes you while you're moving snow. The neighbor's cat decides to shred the seat. But I doubt it would provide any liability. That would be your homeowners.

But IIRC... Your homeowners may NOT cover the machine itself. It could be different in your state, but some homeowner's policies do not cover equipment worth more than $5k in certain scenarios. Ex. Using the equipment while not on your property, unit stored outside and either a tree falls on it or it is stolen; you might not be covered.

I'm guessing an inland marine policy would be needed for the machine itself. But as JeepHead said above, best to ask your agent. Provided your agent knows this kind of stuff. I've discovered most homeowners policies are for 'regular' people. The kind of people that don't have a personal shop, commercial lawn mowers, equipment, ATV's, or large collections of things.

 

[MACflyer]

I have the Kubota insurance on my BX and the Kioti insurance on my CK. I cant remember the details for the Kioti, but the Kubota dealer told me it covers any damage to the machine no matter the reason. Car side swipes you while you're moving snow. The neighbor's cat decides to shred the seat. But I doubt it would provide any liability. That would be your homeowners.

But IIRC... Your homeowners may NOT cover the machine itself. It could be different in your state, but some homeowner's policies do not cover equipment worth more than $5k in certain scenarios. Ex. Using the equipment while not on your property, unit stored outside and either a tree falls on it or it is stolen; you might not be covered.

I'm guessing an inland marine policy would be needed for the machine itself. But as JeepHead said above, best to ask your agent. Provided your agent knows this kind of stuff. I've discovered most homeowners policies are for 'regular' people. The kind of people that don't have a personal shop, commercial lawn mowers, equipment, ATV's, or large collections of things.

I think you’re completely correct. The fact my insurance agent had no idea what a UTV was, and asked me to clarify what it was at least three times convinced me to just go ahead and use the kubota insurance.

 

[LVKubota]

This thread brought back memories.....when i bought my 3301 almost 8 years ago, I was on the fence whether to buy new with the 0% down, or buy a 200 hour machine for around $7,000 less..

Chose the 0% when magically the contract was $3,000 more than what we agreed to.....the $10k+ total difference was too much and we ended up buying the gently used machine.

Insurance is always a ripoff.....until you need it. ..LOL!!

 

[5030]

I cannot comment except to say we are a working farm and a registered corporation with a Fed ID number and everthing we have farm related is insured for actual replacement value. One thing I'd never have is a 'homeowners' policy and certainly not Kubota insurance. As a rule, I don't like insurance but in today's world, a necessary evil.

Good luck in whichever way you go but whatever that is, make sure you understand the fine print on the policy so there are no surprises down the road.

 

[WM75Guy]

When I bought my RTV- X recently I had to get a Kubota form signed by my Texas Farm Bureau that the TFB insurance covered everything that KTAC covered.

 

[5030]

When I bought my RTV- X recently I had to get a Kubota form signed by my Texas Farm Bureau that the TFB insurance covered everything that KTAC covered.

Interesting as I've never had to do anything like that. Must be a state specific requirement.

 

[Torvy]

Interesting as I've never had to do anything like that. Must be a state specific requirement.

No, I'm in the same state.

It makes more sense the other way around. If you go through Kubota finance, they will require you have sufficient insurance.

Why would TFB care if their coverage matches or exceeds Kubota?

 

[MACflyer]

I cannot comment except to say we are a working farm and a registered corporation with a Fed ID number and everthing we have farm related is insured for actual replacement value. One thing I'd never have is a 'homeowners' policy and certainly not Kubota insurance. As a rule, I don't like insurance but in today's world, a necessary evil.

Good luck in whichever way you go but whatever that is, make sure you understand the fine print on the policy so there are no surprises down the road.

We just got our LLC up and running for our farm. What do you mean by, you’d never have a homeowners policy?
Navigating tax law for this new venture makes the insurance stuff seem like child’s play in comparison.