I don't need a new tractor, but the insurance company is offering to pay for one

[Industrial Toys]

I think, to avoid fraud, it is often a case of replacing said loss. So, not merely a way of getting rid of unwanted stuff at better than selling price. or like, burning down a failing business. You have to rebuild.

 

[aczlan]

I have never heard of this - if you have a loss, insurance pays YOU for the loss,unless you owe money

The OP probably has a replacement value policy, the insurance company will pay you the depreciated value of the item that you've lost, when you show them the receipt for purchasing the replacement item, they will pay you the depreciation.

Aaron Z

 

[Lineman North Florida]

Go on and get you a tractor and keep it, a man can always find something to do with a tractor.

 

[Wagtail]

I'd think 'outside the box' on this, "what's their definition of a tractor?"

In today's market, implement manufacturers are selling/producing many attachments for side-by-sides. Quite a few small acreage owners are going this route.

Something to consider. :scratchchin:

 

[stamello]

I have never heard of this - if you have a loss, insurance pays YOU for the loss,unless you owe money
to a bank or finance company - then it's up to you to replace the item, or pocket the money....

Right, sorry - I did not explain the whole situation and that has caused some confusion. The insurance company already paid me the cash value of the destroyed tractor (the value of the tractor on the day it was destroyed). I have pocketed that money and they're fine with that. This additional payment is for recoverable depreciation: the difference between my actual loss (the value of the tractor on the day it was destroyed) and the replacement value of that loss (the cost of buying a brand new tractor). They will only pay out this additional payment if I actually replace the loss (i.e. buy a tractor).

 

[stamello]

The OP probably has a replacement value policy, the insurance company will pay you the depreciated value of the item that you've lost, when you show them the receipt for purchasing the replacement item, they will pay you the depreciation.

Aaron Z

yes, exactly

 

[stamello]

That is what I would TRY and do. Talk to a dealer and explain the situation. A big dealer might be better, just as I would not want to deal with a perfect stranger. Heck, I have been burned by people I thought were my friends! Here, the issue is always the tax, when it comes to flipping stuff.

I also know, that the hardest thing to sell is a very low hour tractor, even pristine. I mean, for close to new price. Brand spanking new, might be different, but everyone would think it's a scam, or stolen.

That's a good point. I actually emailed a dealer I had previously worked with and he stopped emailing me - I think he thought this whole situation was some sort of scam - I need to call him today.

 

[audsp98]

Go buy a new subcompact (Kubota or JD for resale) then sell it. Whatever you get out of it is the insurance money in your pocket.

 

[MESSMAKER]

I wonder if you could get a 90 day return through a dealer. Let them in on the deal. Let them keep the tractor and pay you 85% or so of new. The dealer could sell as a deal for 10% off and they could make a healthy profit. You would just do the paperwork and then cash the check.

 

[TractorGuy]

Mind sharing who your insurance is with?

I have home owners with a country squire rider through Farm Bureau and they say my tractors are not covered unless I list them extra and pay.

 

[dodge man]

I just bought a new JD and took the 0% interest, so I needed to insure it. With my State Farm homeowners policy, it would be covered by fire or theft, but if I wrecked it while using it, it wouldn't be covered. I ended up getting a policy to cover it.

 

[tcreeley]

I wonder if there is no cash involved coming directly to you because the insurance company works out a side deal with the dealer for a reduced price. You get it for retail (on paper), insurance pays wholesale (reality). Dealer has a sale.

 

[mellochatt]

I wonder if you could get a 90 day return through a dealer. Let them in on the deal. Let them keep the tractor and pay you 85% or so of new. The dealer could sell as a deal for 10% off and they could make a healthy profit. You would just do the paperwork and then cash the check.

I talked to one dealer about that. He wanted more than I wanted to give him.

 

[mellochatt]

Mind sharing who your insurance is with?

I have home owners with a country squire rider through Farm Bureau and they say my tractors are not covered unless I list them extra and pay.

USAA covered it under my home owners

 

[mellochatt]

I just bought a new JD and took the 0% interest, so I needed to insure it. With my State Farm homeowners policy, it would be covered by fire or theft, but if I wrecked it while using it, it wouldn't be covered. I ended up getting a policy to cover it.

Yes - USAA covered it because of fire. They just wanted to make sure that I wasn't using it in an agricultural business.