KTAC Insurance Increase???

[Atlanta Panther]

I've had my L3200 about a year now...got the FEL, Bucket, Bushog and Box Blade for $19K. I immediately called KTAC and got insurance for $228 for the year which seemed pretty fair and a wise investment.

A year later (and older)...no claims... just got my erenewal notice and they want $296...a 30% increase!!!

What the heck is going on?

Anyone else get the big increase? Is this a scam?

 

[Bluegill]

I'd blame Obama...

Insurance as a whole is a scam. But in some cases a necessary evil...

 

[Woody Martin]

Just reading your post. I purchased my tractor a little over 2 months ago. My cost is about $280 a year for insurance. (maybe a shade more). I neglected to ask the questions about increases. However, I financed a portion of the total through Kubota because I couldn't find anyone that would even insure a tractor. My home owners insurance wouldn't allow me to leave the property. That's why I did Kubota financing. Well, if they raise it on me, I'll pay the tractor off and cancel it. Thanks. You just alerted me to something to look out for.

 

[jasonTDI]

Complaining about something that is close to 30K to replace for under $300 a year...please. They have actuarial tables to cover the loses for a reason. The numbers aren't pulled out of their butt.

 

[AZ.]

Complaining about something that is close to 30K to replace for under $300 a year...please. They have actuarial tables to cover the loses for a reason. The numbers aren't pulled out of their butt.

I am confused on what it covers then? Is it an extended warrantee? or is it in case of a roll over?

 

[ShaunRH]

I am confused on what it covers then? Is it an extended warrantee? or is it in case of a roll over?

It covers everything but acts of terrorism and war. Personally, if a terrorist goes for my Kubota, I'll take it out of his hide long before the authorities get him.

I purchased all 5 years of my KTAC policy with the tractor. They can't raise rates on me! Since it's 0% interest, I suggest everyone else do the same if they are getting KTAC insurance with the purchase.

One nice thing about the KTAC insurance is that if the vehicle is totaled, they will deliver a nice new replacement (and any totaled 'allied' implements as well if you purchased them with the unit) right to your door. It's a great promise, but I have yet to hear anyone actually have it done by them.

They seem nice enough though, which they all are until you file a claim...

 

[Wrencher2423]

I declined the kubota ins when I just got my bx 3 weeks ago and had to buy a policy from my car insurance carrier (Erie ins.) my home owners would cover it if I stayed on my property but I know I am going to have lots of friends so he advised me to by a inland marine policy for 73.00 a year and it does the same thing as the kubota ins for a lot less.

 

[ShaunRH]

I declined the kubota ins when I just got my bx 3 weeks ago and had to buy a policy from my car insurance carrier (Erie ins.) my home owners would cover it if I stayed on my property but I know I am going to have lots of friends so he advised me to by a inland marine policy for 73.00 a year and it does the same thing as the kubota ins for a lot less.

It likely does not. In case of total loss it will likely only cover your tractor in a pro-rated sense. If it's 5 years old, they will replace same model same year or approximate value thereof.

KTAC will get you a brand new machine within the first 5 years (I think that's the time frame someone else correct me if I'm wrong).

KTAC also had a couple of other minor benefits (like being able to add the cost right into your initial purchase) but they weren't overwhelming.

I'm not trying to sell KTAC but the free new replacement during policy life was worth the slight annual increase to me, also the headache free billing built into the policy. One less insurance company to deal with...

Yeah, if you're pinching every penny then go Homeowners or Marine style policy. There are even 'Ranch/Ag' policies out there as well but be very careful of them, some don't cover certain kinds of Ranch/Ag operations.

 

[olthumpa]

Umbrella policy. It does not cover the damage to my tractor but it covers me and my wife for any liability incurred on anything we operate or sued for up to the limits of the policy.

http://en.wikipedia.org/wiki/Umbrella_insurance
http://www.allstate.com/personal-umbrella-policy.aspx

 

[radman1420]

I own a Kubota mx5100 and a kubota kx 121-3 mini x. I took the ktac insurance with both. I can tell you when you pay off your loan your insurance will be cancelled as well! I didnt know this. I paid off my mini x 2 years early and received a letter from ktac telling me my insurance would expire 30 days after. They did offer for a fee to take out a new policy for me which I told them where to go! I called my tractor dealer and asked them if I paid off my tractor early would it be cancelled also and they said yes when you dont have the loan through kubota anymore it cancells and you have to take out a new policy. Needless to say I wont pay off my tractor early since its 0 percent interest and I rolled the insurance into the note. I would check this out before buying again.

 

[MikeCHS]

Needless to say I wont pay off my tractor early since its 0 percent interest and I rolled the insurance into the note. I would check this out before buying again.

It was still the best deal that I could find. I had planned on paying it off early since I'm retiring next year until I found out about the insurance. I'll just keep the money in savings and keep the cheaper insurance.

 

[dmanlyr]

I own a Kubota mx5100 and a kubota kx 121-3 mini x. I took the ktac insurance with both. I can tell you when you pay off your loan your insurance will be cancelled as well! I didnt know this. I paid off my mini x 2 years early and received a letter from ktac telling me my insurance would expire 30 days after. They did offer for a fee to take out a new policy for me which I told them where to go! I called my tractor dealer and asked them if I paid off my tractor early would it be cancelled also and they said yes when you dont have the loan through kubota anymore it cancells and you have to take out a new policy. Needless to say I wont pay off my tractor early since its 0 percent interest and I rolled the insurance into the note. I would check this out before buying again.

But when you pay off early, you also do not pay for all of the years coverage thru KTAC, that is why the payoff is less than what is owed on the equipment if the full time was taken to pay for it.

So in reality, since you do not pay for it, nor are required to pay the full premium amount, why would the insurance contract not end when paid off. I could see a issue if you had paid the full premium and the coverage ends early, but that is not the case. KTAC is not ripping anyone off here.

You can't expect something for nothing. Paying more for coverage after the term ends on what you paid for seems only fair.

Again, if KTAC charged you the full premium then it would a rip off to end the insurance coverage early, and telling them where to go would make sense. Not the case though!!!!

David