Insurance for a $7,000 tractor - standalone policy

[chabat124]

I am trying to help a customer of mine. I am an insurance agent in Texas.

My customer just bought a $7,000 1970s Ford 3000 tractor with a shredder and box blade.

He has his homeowners with me but his deductible is nearly $7K on the home and personal property so it won't do much good to add it there. Also, their homeowners policy is not a farm and ranch.

I could write him an equipment policy (inland marine) like you would for heavy equipment but the minimum premium is high, close to $1,000. If it were is $50,000 tractor I would go this route, no question.

So my question: Is there any companies that someone here would recommend, for just tractor insurance by itself?

 

[week2479]

I am trying to help a customer of mine. I am an insurance agent in Texas.

My customer just bought a $7,000 1970s Ford 3000 tractor with a shredder and box blade.

He has his homeowners with me but his deductible is nearly $7K on the home and personal property so it won't do much good to add it there. Also, their homeowners policy is not a farm and ranch.

I could write him an equipment policy (inland marine) like you would for heavy equipment but the minimum premium is high, close to $1,000. If it were is $50,000 tractor I would go this route, no question.

So my question: Is there any companies that someone here would recommend, for just tractor insurance by itself?

Interesting

 

[5030]

Not a clue. All of our equipment is insured under our blanket farm policy with a $1000.00 deductible (all perils).

 

[LS Tractor Owner]

I have mine through State Farm, $30K coverage. Costs $350 a year..... $500 deductible.

 

[Nissan197]

I am trying to help a customer of mine. I am an insurance agent in Texas.

My customer just bought a $7,000 1970s Ford 3000 tractor with a shredder and box blade.

He has his homeowners with me but his deductible is nearly $7K on the home and personal property so it won't do much good to add it there. Also, their homeowners policy is not a farm and ranch.

I could write him an equipment policy (inland marine) like you would for heavy equipment but the minimum premium is high, close to $1,000. If it were is $50,000 tractor I would go this route, no question.

So my question: Is there any companies that someone here would recommend, for just tractor insurance by itself?

I am trying to help a customer of mine. I am an insurance agent in Texas.

My customer just bought a $7,000 1970s Ford 3000 tractor with a shredder and box blade.

He has his homeowners with me but his deductible is nearly $7K on the home and personal property so it won't do much good to add it there. Also, their homeowners policy is not a farm and ranch.

I could write him an equipment policy (inland marine) like you would for heavy equipment but the minimum premium is high, close to $1,000. If it were is $50,000 tractor I would go this route, no question.

So my question: Is there any companies that someone here would recommend, for just tractor insurance by itself?

Are you able to rate with other companies to see what their rates are for an IM? An IM is the best option IMO but $1K does seem steep.

 

[duffer]

Seems to me the simplest solution is either:

• decrease deductible on current policy down to <$1000
• Find a new HO policy that covers ALL personal property

 

[scaredychicken]

this sounds like it would be a separate insurance rider for that item. we did that for camera equipment.

I'm in Canada, so probably not as informed as others for this question.

My thought is however that you don't need to be a farm or ranch in order to own a tractor. For a $7000 tractor i wouldn't want the insurance or the deductible to be very high. Liability insurance is probably in the H O policy, so its really about how much do you want to spend insuring a vintage tractor ?

All the best.

 

[HP942]

Farm Bureau will do stand alone tractors.

 

[kenmac]

If he's only insuring against the loss of the tractor, for just 7K . I would just self insure.

 

[seville009]

I’m a homeowner with a tractor, skidsteer, commercial zero turn, and related attachments. Original cost all together of roughly $70k. I have never separately insured them.

In the 23 years of owning equipment, I’ve never had an issue where I would have needed insurance coverage for them. I’ve never worried about not having coverage.

My vote is for the OP is also to self insure. Obviously it’s all based on personal opinion/desires.

 

[Hoss710]

I have mine insured threw inland boaters insurance. only option I could find. even after contacting my farm credit bureau. They had recommended me to a few agents. but since its not a new tractor , no 1 I contacted could offer me any insurance other than What I mentioned above.

 

[S854]

Is any insurance company gonna write a $7,000 check for a stolen/wrecked/burned, 1970’s Tractor?

IDK… which is why I’m asking…

Closest scenario I’m familiar with is my fathers ‘73 Triumph Stag… he needed a “collector’s car” insurance policy… basically the owner states the value of the vehicle, the insurance company works backwards from there to quote a comprehensive premium…

It wasn’t cheap and he was restricted to driving it less than 1,500 miles per year…

 

[crashz]

Hagerty and others do an agreed value policy on a lot of items. I have not used them but hear the advertisements often. I would also try Progressive as well. I have an agreed value commercial policy on my oldish dump truck (not worth much but not a collectable) and it's very reasonable. Full coverage too. The truck is like me: worth more dead than alive!

 

[masseyrider]

SAY WHAT?
I'm in Canuckistan where our insurance rates are way more than the states and I pay way less than what you quote.
For my entire property, House $800K, Barn$350, liability, chemical cleanup, personal injury... my deductible is $1k and entire policy is $1400. Canuckistan dollars even.
To save a few bucks I considered taking my herd (2 much newer Massey 563s and a GC2310) off the policy. The agent said it would only reduce my policy about $60.
Somebody's getting gouged.

 

[chabat124]

I found a solution. My carrier can do $500 deductible on inland marine (equipment floater) which basically is just coverage for the equipment, regardless of where it is being used, just like you'd buy for a dozer used in commercial endeavors.

The premium was $500/yr which the customer can live with, vs self-insuring. A little higher than what some of you said, but they want to keep all their business with me, for ease of doing business.

They store in a locked fence, locked commercial building in town, not at their residence. They are realtors and own land separate from their primary residence. So the homeowners policy didn't want to insure the tractor away from the insured premises. So inland marine was the best option.

Thank you for all the replies. It really helps to be able to bounce things off people here!

 

[chabat124]

SAY WHAT?
I'm in Canuckistan where our insurance rates are way more than the states and I pay way less than what you quote.
For my entire property, House $800K, Barn$350, liability, chemical cleanup, personal injury... my deductible is $1k and entire policy is $1400. Canuckistan dollars even.
To save a few bucks I considered taking my herd (2 much newer Massey 563s and a GC2310) off the policy. The agent said it would only reduce my policy about $60.
Somebody's getting gouged.

I would beg to differ that your insurance rates are more than the states. The insurance landscape here is dependent on a lot of factors, including nature of business, commercial vs personal insurance, zip code, different companies with different rates, loss history, and finally, insurance score which is credit based.

Saying your policy is cheaper than someone else you know or know of is not really an indicator of anything, other than you both have different rates.

I get it that you are saying you feel like you are getting a good deal. No two risks are identical. Just enjoy your good fortune to have low premiums, while that lasts.

 

[chabat124]

Hagerty and others do an agreed value policy on a lot of items. I have not used them but hear the advertisements often. I would also try Progressive as well. I have an agreed value commercial policy on my oldish dump truck (not worth much but not a collectable) and it's very reasonable. Full coverage too. The truck is like me: worth more dead than alive!

I have an 80s sports car insured with a company similar to Hagerty, as a vintage car. It is very inexpensive. But they make sure it isn't your daily driver.

I looked a Hagerty, Progressive, Foremost, and other companies that write a lot of toys (RV, Motorcycle, ATV, UTV, watercraft, off-road vehicles etc) but they were not writing farm equipment.

Now Progressive will write commercial vehicles that are registered for on-road use, including dump trucks etc.

 

[chabat124]

Is any insurance company gonna write a $7,000 check for a stolen/wrecked/burned, 1970’s Tractor?

IDK… which is why I’m asking…

Yes, yes they will. I write insurance for older equipment regularly, but it is usually either on a farm package or commercial equip (ie old backhoe, dozer, skid, etc). Farm equip usually ends up on a farm and ranch policy which is usually someone who owns a farm along with barns, farm equip, etc.

And yes, insurance companies will write small amounts like $7K on 70s equipment, and pay the claim if stolen, burned, whatever.

When a claim happens, the insured would need to show documentation of what they paid for it, or comps (documentation of like, kind and quality of similar equip on the market) to establish value. Unless they have an Agreed Value policy, then it pays that amount. Most are actual cash value on equip, just like auto.

 

[chabat124]

Seems to me the simplest solution is either:

• decrease deductible on current policy down to <$1000
• Find a new HO policy that covers ALL personal property

The HO policies I am able to sell consider farm buildings and farm equipment as items that need to be scheduled on the policy. I am aware some farm policies can have a blanket amount for farm equip but it's usually scheduled from my experience, at least in Texas where I write insurance. Most HO policies have certain items they want scheduled. Ie... your zero turn mower and all the tools and stuff at your home is usually considered personal property. But farm related stuff is usually classifed outside personal property. YMMV

 

[Hoho223]

When I bought my tractor the lender (Wells Fargo, a known criminal enterprise) required it be covered as a rider on my USAA homeowners. My deductible then as now was $1k. I’m just a homeowner with a tractor. I don’t remember there being a significant increase in premium.