Tractor Insurance: am I being ripped off

[LDWallace]

I have tractor insurance on a 2022 48 HP tractor with 350 hours through EII Equipment Insurance International. I did not know anything about the company.. my dealer made all of the arrangements with the financing and the insurance.

Recently I destroyed the engine.. It was stupid operator error.. but that is why I paid for insurance.

My dealer said he would only replace the engine at $20k + since he did not have the facilities for a rebuild.

The insurance company deemed the tractor a total loss and took bids for salvage.

So here is the deal:

1. They said the FEL was insured separately and since it was not damaged they would cover only the tractor and not include the FEL.

2 despite much higher “comparables” and the fact you can’t buy a 48HP tractor without the loader they say they will only reimburse me $16k minus deductible.

They say they have no obligation to make me “whole”. They are only obligated to cover what they have decided is the value of the tractor. (Which I contend is much higher than $16k!)

3. My dealer suggested I remove the loader mounts and other parts and he might be able to order a tractor without a loader. (A much larger dealer in a larger town said they have no interest in ordering a tractor without a loader)

4. The insurance company has told me the tractor is out for bid and I can not remove anything from the tractor. I contend if they are not willing to work with me I should take the FEL mounts. I called the salvage company and they said they would rebid the tractor if I remove anything. I am sure the insurance company is going to tell me I have to “eat” any changes in the bid.. but . I have not yet “forced” that issue?

Do any of you have any thought or suggestion of what I should do? They sent me a “release” today for me to sign. Should I just remove the FEL mounts? The salvage company offered me $500 for the loader!

I am venting here. I know there probably is not much I can do. I feel like they have pretty much told me … “It is our way or the highway” and I am pissed!!

 

[MtnViewRanch]

I am assuming that you are not able to change out the engine? Check on a mobile tractor mechanic to see if he would be interested in pulling the engine, rebuilding it, and reinstalling.

Without knowing what all happened to the engine (rod out the side?) it's hard to even guess, but I recommend at least checking before the machine is gone and you are out of luck.
Most engines can be rebuilt and the $20K price tag is really only 5K because you fix what the problem is, not just replace the whole thing.

Good luck with this whole issue.

 

[fishheadbob]

There are people who make a living as independent insurance adjusters who work for you, not the insurance company. Google around. Most independent adjusters don't know ag equipment, so when one tells you that, ask who he knows of that does.

 

[LDWallace]

I am assuming that you are not able to change out the engine? Check on a mobile tractor mechanic to see if he would be interested in pulling the engine, rebuilding it, and reinstalling.

Without knowing what all happened to the engine (rod out the side?) it's hard to even guess, but I recommend at least checking before the machine is gone and you are out of luck.
Most engines can be rebuilt and the $20K price tag is really only 5K because you fix what the problem is, not just replace the whole thing.

Good luck with this whole issue.

MVR

I sucked water in through the air filter. The dealer where I took the tractor (the dealer that sold me the tractor would not return my phone calls) is pretty much a one man shop. He was not confident he had the skills, the tools or the time needed for an engine tear down. I called other tractor dealers but they said they didn’t want to work on an “outside” brand plus if they did I would not have my factory warranty.

The tractor would probably be a great project for a shop with “skills” since there is probably minimal damage to the engine.

I messed up by not insisting the shop do a full diagnosis. The shop just verified the engine was frozen.

 

[5030]

That sucks, big time. Just had a tree fall on my Focus RS turbo in the back yard. Insurance co wanted to total it. I said no. Still driveable, looked bad with a caved in roof but I took it to the bump shop and the owner gave me an estimate, worked with the insurance company and I got it repaired. The total repair was 100 bucks under the total value (the bump shop owner fudged it a bit, so the buggy is fixed and nothing put of pocket either. He worked in my deductible as well.

Wasn't about to total a Focus RS Turbo. Not made anymore, gets 40 mpg if I drive it like the old man I am and no way did I want a new car or a car payment. Have not had a car payment for years.

I'll be careful where I park it from now on...lol

 

[LDWallace]

There are people who make a living as independent insurance adjusters who work for you, not the insurance company. Google around. Most independent adjusters don't know ag equipment, so when one tells you that, ask who he knows of that does.

FHB

I will look into that…. The adjuster did do what I consider “fair comparables”. The insurance company just ignored them and set their own valuation.

 

[5030]

Have to ask, how did you suck in water through the air filter??????????

 

[MtnViewRanch]

There is a chance that all that needs to be done is the injectors pulled and the engine turned over a few times to get the Water out. I know this because I had 6.9 hydraulock after the engine had been shut down and then filled with anti-freeze from a blown intake gasket.

If the motor was actually running, then maybe a bent rod or? Look for a mobile mechanic.
You should be able to get this fixed without loosing your shirt.

One of the issues is that most everyone's mind set is to replace, not many want to repair anything anymore.

 

[LDWallace]

Have to ask, how did you suck in water through the air filter??????????

Stupid operator error.

The air intake is around 15” high. I thought I would take a short cut and drive through the edge of my pond.. I thought the water was only about 6” deep. (In retrospect that was too deep to drive through.) but. I hit the water nose down and soft mud. I was through it before the tractor stopped but the damage was done.

I will not do that again. I will find a new “stupid” mistake.

 

[RjCorazza]

Your number 4 concern about the loader would infuriate me. The loader was not factored into the valuation (what they pay you) due to not being damaged and insured separately. Now they want bids (their compensation) based on a loader tractor?? That loader is your property, and I would remove it even if it just sits in a field for the next 20 years.

 

[LDWallace]

There is a chance that all that needs to be done is the injectors pulled and the engine turned over a few times to get the Water out. I know this because I had 6.9 hydraulock after the engine had been shut down and then filled with anti-freeze from a blown intake gasket.

If the motor was actually running, then maybe a bent rod or? Look for a mobile mechanic.
You should be able to get this fixed without loosing your shirt.

One of the issues is that most everyone's mind set is to replace, not many want to repair anything anymore.

MVR

I pulled the glow plugs and tried to turn the engine with cheater bar.. no go..

Had it moved to the dealer. He basically did the same thing and recommended a new engine. The damage may have been minimal but he did not want to do it.

 

[LDWallace]

Your number 4 concern about the loader would infuriate me. The loader was not factored into the valuation (what they pay you) due to not being damaged and insured separately. Now they want bids (their compensation) based on a loader tractor?? That loader is your property, and I would remove it even if it just sits in a field for the next 20 years.

RJC,

Yeah, exactly the way I feel. They say they are only responsible for the tractor.. then they double low ball me on the tractor valuation.

The dealer says even if I can get the same model tractor without a loader I will need the loader mounts, which are currently attached to the tractor, to insure the loader fits. The insurance company has told me not to remove anything from the tractor.

 

[Paystar]

I would be removing anything the insurance company is not paying for, and wasting money on a lawyer if necessary.

 

[etpm]

Three times I had a vehicle that was considered a total by the insurance company. Two times not my fault and one time my fault. All three times the insurance company lo-balled me. So all three times I found local comparables and got the money I though I should get, considering what a replacement would cost in my area. One time the insurance company was being particularly stubborn so I sent a letter to the Washington State Insurance commissioner and a copy of the letter to the insurance company about the valuation and I included several comparables from newspaper ads. The insurance company paid up. If you do send of a letter, or email these days, make sure to mention that the non-insured loader is being considered as part of the value for the bid on a totaled tractor. This amounts to stealing from you. Insurance commissioners frown on this type of stunt.
Eric

 

[caver]

Different insurer here obviously but my tractor also has the loader insured separate from the tractor per insurance company requirements.

 

[4570Man]

My nearly new skid steer was totaled in a fire recently. The bucket has a separate serial number and was listed on the policy separately. So your loader being separate is probably pretty legit. And I got screwed over on the value too. They claimed I was only entitled to current cash value not the replacement value which was technically correct. I might’ve eventually got a few more dollars from them but it had already taken a month and the dealer was offering enough for the burned machine to make up the shortfall so I settled and went on. And your dealer sounds pretty lazy. They sell tractors without loaders all the time plus you shouldn’t need a complete engine either. They sell long blocks for considerably cheaper than the whole thing.

 

[4570Man]

RJC,

Yeah, exactly the way I feel. They say they are only responsible for the tractor.. then they double low ball me on the tractor valuation.

The dealer says even if I can get the same model tractor without a loader I will need the loader mounts, which are currently attached to the tractor, to insure the loader fits. The insurance company has told me not to remove anything from the tractor.

I’d 100 percent be removing the loader mounts and the valve kit from the tractor. That’s part of the loader that they already claimed you still own.

 

[RayIN]

Were it my tractor,and the block has no obvious damage, I'd tell the ins. co. to cancel my damage claim_period. Then I'd begin calling mobile mechanics for an in-frame overhaul
My nephew just performed an in-frame overhaul on my MF 135 perkins engine with cylinders full of anti-freeze.
All new bearings, new cyl. liners, head resurfaced, all new gaskets, etc.
He has approx, $1,800 in parts plus his labor.
Even if you must replace rods and pistons, that's probably about another $800.
The mechanic doesn't have to know your specific engine, just have a shop repair manual ready for him when he arrives.

 

[LouNY]

Is your tractor the TYM 474?
If so that seems to a Kukje A2300N2 engine. Which is the supposedly Cummins Onan engine.

 

[Paystar]

That's one thing about insurance you always have to fight with them. Never take their first offer.
Remember....they have no issue taking more and more money from you, so don't let them off easy when it's time to pay up.