Kubota Insurance Cost

[PSDStu]

Does anyone know the formula KTAC uses for computing the cost of the insurance when financing a tractor?

I have heard it's .001x loan balance, divided by length of loan in months?

Any idea?

Thanks

 

[scdeerslayer]

$1 per $1,000 financed per month. Essentially a 1.2% interest. You will get a refund if you pay the loan early or make an extra payment (according to my dealer anyway).

 

[MessickFarmEqu]

Its $1.30 per thousand.

 

[PSDStu]

So if I finance $44,800 for 60 months I figure the insurance would be around $3494.

Does that look about right?

 

[moship]

According to what a dealer told me 60 minutes ago, the $1.30 per $1,000 is not on loan balance or the amount financed. It's based on the purchase price.

 

[moship]

So if I finance $44,800 for 60 months I figure the insurance would be around $3494.

Does that look about right?

No, it doesn't look right. 44,800x1.35/1,000 = $60.48 or $725.76/yr or $3,628.80 for 60 months.


This seems like very expensive insurance.

Added in edit: When I first read your post misread $3494 as $34.94. In either case you're close for over the life of the loan.

 

[RichM752]

I was quoted $13.60 per $1000 of purchase price. $782 per year for $57,500 tractor.

 

[General Lee]

I pay 293.00 a year now that my tractor is paid off. Thats KTAC

 

[whirly]

I bought a used MX5100 for $26K cash. Kubota insurance is $407/year. Right at what RichM said ... $1.30/mo or $15.60/yr per $1K.

 

[MadMax31]

I was told its based off purchased price, not amount financed. So if I added a Curtis Cab and a RFM, that would be factored into Ins cost. It's annoying but I understand it. Other colors make you purchase a loan protection insurance at around $300. You default, the loan is still satisfied.

My gripe with the KTAC is, they specify coverage so that most homeowners wont cover it. I emailed the details to my current homeowners and the response I got was "How deep are your pockets".

The extra $27 a month in my case, pushes the payment above what I want to spend.

 

[whirly]

I was told its based off purchased price, not amount financed. So if I added a Curtis Cab and a RFM, that would be factored into Ins cost. It's annoying but I understand it. Other colors make you purchase a loan protection insurance at around $300. You default, the loan is still satisfied.

My gripe with the KTAC is, they specify coverage so that most homeowners wont cover it. I emailed the details to my current homeowners and the response I got was "How deep are your pockets".

The extra $27 a month in my case, pushes the payment above what I want to spend.

1) My home owners will cover the tractor for theft and fire. KTAC covers it for "accidental" damage. i.e. - you roll it they fix it; you put a branch though the radiator they fix it if a tree limb falls on the soft parts (Hood, Fender, Cab) they fix it; you put a hole in the pan and loose all of the oil, smoke the engine ... they fix it. Home owners won't do that. KTAC also covers the tractor in transport - you or your friend hauling it to the dealer or work site.

2) Yes, the premium is on the original purchase amount of everything "Orange". If it has a Kubota Part # it's covered but has to be listed on the declaration page of the policy. To my understanding, if it's an aftermarket cab or FEL it isn't covered.

3) Loan protection insurance is to protect the lender not you. If you default, the insurance company pays the lender and comes after you.

Just my 2 cents

 

[Tractor Seabee]

After paying off my BX I continued the KTAC insurance at $300/yr for the tractor, brush hog and rototiller with a $20K insured value. Last year they paid for $8000 in damage repairs. I could not have afforded that out of pocket. For me it is a bargain I cannot do without. A total casualty like a fire or theft will get me a current model replacement. I determined there was no good reason to insure the attachments that do not have moving parts, break it I can fix it.

Ron