Insurance after payoff.

[Bpace]

What are your thoughts on insuring your sub compact tractor if it's paid for?

 

[fried1765]

What are your thoughts on insuring your sub compact tractor if it's paid for?

In the most powerful word from 1600,........"DON'T"!

 

[MapleLeafFarmer]

What are your thoughts on insuring your sub compact tractor if it's paid for?

for what?

Fire / theft / vandalism? depends where you live I suppose

Breakdown? after many many decades I wouldn't have ever used it but YMMV

Liability / accidents? again depends where you live, what you are using it for etc.... around here anything that leaves your property (like on a public road) you will need insurance by law

Are you using it for business or just a play toy around your own property?

 

[NCL4701]

It’s like insuring anything else: if it burned up, was stolen, was vandalized, etc. and you had to pay out of pocket for replacement or major repair, would that be acceptable to you? If yes, retain that risk yourself and don’t insure it. If no, pay an insurance company to take on some of that risk for you.

More common decision is when you pay off a car/truck. Do you keep physical damage coverage on it or drop it down to liability only?

Same basic decision with one difference: before you get specific insurance on it, if it’s personal use only, check with your homeowner carrier to see if you have automatic coverage on it. That answer will depend on where you use it, what you use it for, and what type homeowner policy you have (which varies to some degree from state to state so you need someone local to answer that). Things homeowners doesn’t usually cover are collision, overturn, flood, and sinking (ran into the pond). Specific insurance usually does cover those but that varies as well.

And don’t overlook liability coverage. Homeowners may or may not cover liability depending on where and what you use it for.

Bottom line, it’s a business decision and the answer varies by location, use, and risk tolerance of the owner. BTW, mine is specifically insured for physical damage, on premises liability, and off premises liability. It’s current value is more than any other vehicle on the property (my wife’s Highlander might be close). liability exposure is essentially unlimited so I like liability coverage; that and liability coverage for farming/non-business is cheap.

 

[85Hokie]

What are your thoughts on insuring your sub compact tractor if it's paid for?

Great question!

FIrst I would ask your home owner agent WHAT is covered. If it burns up in a fire? IF it is stolen? IF a tree cuts it in half......... some of those will be covered but some will not.

IF you were to take the money that you WOULD pay for the K insurance and stick it in the bank (no one does this btw) and after a couple of years you would have enough to fix most "problems"

Check with your agent!

 

[fried1765]

Great question!

FIrst I would ask your home owner agent WHAT is covered. If it burns up in a fire? IF it is stolen? IF a tree cuts it in half......... some of those will be covered but some will not.

IF you were to take the money that you WOULD pay for the K insurance and stick it in the bank (no one does this btw) and after a couple of years you would have enough to fix most "problems"

Check with your agent!

s
Get the specific covered items/issues listed in an e-mail from your agent, and SAVE that E-mail.

 

[Vlach7]

It’s the numbers game, what’s your liability, insurance companies aren’t in business because they’re losing money, I’ve never had insurance , never needed it.

 

[fried1765]

It’s the numbers game, what’s your liability, insurance companies aren’t in business because they’re losing money, I’ve never had insurance , never needed it.

My tractor insurance is included in my homeowners coverage.
Very little additional cost for replacement value coverage.
I cannot use my tractors off premises.
Makes for a good excuse too.

 

[GeoHorn]

I almost never finance stuff anymore, so what I do is decide whether or not the insurance-premium is worth the risk of loss on the residual value of the vehicle. Example: The 2005 Buick Century Blue-book worth <$4K….we keep in the garage on a battery—maintainer as a “spare car”…. we carry only liability on it. We can afford it if one of the grandkids who borrows it totals it.

But my 2012 pickup w/200K miles on it…still worth about $20K… we keep full coverage. It got 2-inch hail last week …and I expect it to cost about $10K to fix it.

The Buick will keep me in wheels for the 3-weeks while ins. will reimburse me $20/day for rentals.

Bottom Line: It’s a simple business decision….to take into consideration the Risks of Loss VS the Cost of Benefits.

I paid $17K cash for my lightly used tractor…and the only ins which covers it is Homeowners…which has a 3% deductible (about $8K). I live where it’s very difficult to imagine it being stolen, it’s stored in a locked bldg next door to my rural home with a big dog…...and the nearest public road is a half-mile away on the other side of a security-gate, so the risk of loss is small, IMO.

Insurance will never make you “whole” again when bad things happen…The Best you can expect is weeks of paperwork and a less-than-satisfactory partial-settlement. I’d advise you to self-insure and invest the money.

 

[mikester]

What are your thoughts on insuring your sub compact tractor if it's paid for?

Garden tractors probably fall under your homeowners insurance, check with your agent

 

[Yotekiller]

my 2502 is paid for. I have mine insured through my homeowners for " new replacement value" which includes accidental damage as well. Costs me $180 a year...

 

[Bmyers]

We are looking into insurance also. So far, our homeowners policy with an addition on it to cover the tractor has come in the cheapest for theft, fire, storm damage to the tractor. KTAC covers more, but also cost more.

At least that has been what we have found in our research.

 

[Yotekiller]

We are looking into insurance also. So far, our homeowners policy with an addition on it to cover the tractor has come in the cheapest for theft, fire, storm damage to the tractor. KTAC covers more, but also cost more.

At least that has been what we have found in our research.

You might want to check different carriers. I added mine to my homeowners and made sure it covers accidental damage that covers basically ANYTHING that could potentially happen to my tractor. My agent and I had a very lengthy discussion on all the possible scenarios that could happen to a tractor causing damage and she made sure to get me the coverage that I wanted/needed. And for $180 a year at that....

 

[Bmyers]

You might want to check different carriers. I added mine to my homeowners and made sure it covers accidental damage that covers basically ANYTHING that could potentially happen to my tractor. My agent and I had a very lengthy discussion on all the possible scenarios that could happen to a tractor causing damage and she made sure to get me the coverage that I wanted/needed. And for $180 a year at that....

Yes sir. Wife has been put in phone calls to different companies, getting prices for tractor coverage, homeowners, and vehicle insurance (we try to do this every five or six years).

We just started the process and will decide in June what we will be doing.

 

[fried1765]

I almost never finance stuff anymore, so what I do is decide whether or not the insurance-premium is worth the risk of loss on the residual value of the vehicle. Example: The 2005 Buick Century Blue-book worth <$4K….we keep in the garage on a battery—maintainer as a “spare car”…. we carry only liability on it. We can afford it if one of the grandkids who borrows it totals it.

But my 2012 pickup w/200K miles on it…still worth about $20K… we keep full coverage. It got 2-inch hail last week …and I expect it to cost about $10K to fix it.

The Buick will keep me in wheels for the 3-weeks while ins. will reimburse me $20/day for rentals.

Bottom Line: It’s a simple business decision….to take into consideration the Risks of Loss VS the Cost of Benefits.

I paid $17K cash for my lightly used tractor…and the only ins which covers it is Homeowners…which has a 3% deductible (about $8K). I live where it’s very difficult to imagine it being stolen, it’s stored in a locked bldg next door to my rural home with a big dog…...and the nearest public road is a half-mile away on the other side of a security-gate, so the risk of loss is small, IMO.

Insurance will never make you “whole” again when bad things happen…The Best you can expect is weeks of paperwork and a less-than-satisfactory partial-settlement. I’d advise you to self-insure and invest the money.

I think you may need to check the type of homeowners policy that you have.
I have a USAA policy with "replacement value coverage"
My concern is mostly about a fire loss!
I believe that "replacement value" means just that.

I had a BIG test of replacement value many years ago, and the outcome was very satisfactory.
USAA will "replace" anything (contents lost by fire), at full replacement cost.
Like you, I am in a location where theft is rather unlikely.

Because independent agents get paid on commission, they would have us insure a loaf of bread.

 

[D2Cat]

I almost never finance stuff anymore, so what I do is decide whether or not the insurance-premium is worth the risk of loss on the residual value of the vehicle. Example: The 2005 Buick Century Blue-book worth <$4K….we keep in the garage on a battery—maintainer as a “spare car”…. we carry only liability on it. We can afford it if one of the grandkids who borrows it totals it.

But my 2012 pickup w/200K miles on it…still worth about $20K… we keep full coverage. It got 2-inch hail last week …and I expect it to cost about $10K to fix it.

The Buick will keep me in wheels for the 3-weeks while ins. will reimburse me $20/day for rentals.

Bottom Line: It’s a simple business decision….to take into consideration the Risks of Loss VS the Cost of Benefits.

I paid $17K cash for my lightly used tractor…and the only ins which covers it is Homeowners…which has a 3% deductible (about $8K). I live where it’s very difficult to imagine it being stolen, it’s stored in a locked bldg next door to my rural home with a big dog…...and the nearest public road is a half-mile away on the other side of a security-gate, so the risk of loss is small, IMO.

Insurance will never make you “whole” again when bad things happen…The Best you can expect is weeks of paperwork and a less-than-satisfactory partial-settlement. I’d advise you to self-insure and invest the money.

Except for a drug induced fisherman who doesn't understand boundries!!

 

[fried1765]

You might want to check different carriers. I added mine to my homeowners and made sure it covers accidental damage that covers basically ANYTHING that could potentially happen to my tractor. My agent and I had a very lengthy discussion on all the possible scenarios that could happen to a tractor causing damage and she made sure to get me the coverage that I wanted/needed. And for $180 a year at that....

It might be best to have the agent E-Mail you a recap of that actual conversation.
NOT JUST a copy of the policy!
It is called : PROOF!
PROOF, of how SHE marketed the policy to YOU!

 

[GeoHorn]

I think you may need to check the type of homeowners policy that you have.
I have a USAA policy with "replacement value coverage"
My concern is mostly about a fire loss!
I believe that "replacement value" means just that.

I had a BIG test of replacement value many years ago, and the outcome was very satisfactory.
USAA will "replace" anything (contents lost by fire), at full replacement cost.
Like you, I am in a location where theft is rather unlikely.

Because independent agents get paid on commission, they would have us insure a loaf of bread.

A ”Deductible” is Subtracted from ANY type policy regardless. Full replacement value… Minus the Deductible.

 

[Yotekiller]

It might be best to have the agent E-Mail you a recap of that actual conversation.
NOT JUST a copy of the policy!
It is called : PROOF!
PROOF, of how SHE marketed the policy to YOU!

That's not necessary. A conversation isn't proof of anything or even a binding agreement, whereas the policy is and states exactly what is/isn't covered. I'm good!

 

[fried1765]

A ”Deductible” is Subtracted from ANY type policy regardless. Full replacement value… Minus the Deductible.

Nope,..... not quite my experience.
The deductible from USAA, was for the policy face value, on the structure.
"Replacement value"...at least at that time, was actual replacement cost, for EACH individual item.

Example: I had a many years old fixed stand Onan 8KW Onan generator, that I had paid $800 for (magnificent piece of machinery).
I wanted a portable Honda electric start 6500W replacement.
They paid me the $2,000 necessary to buy the Honda,......perhaps, because it was less that it would be to buy the Onan.

I had a Miller welder that was relatively new, but was no longer in production.
They paid full cost for a new upscaled Miller.

I had an electric/hydraulic automobile lift (I loved it, but was planning to move).
We (adjuster and I) negotiated a pay off price for that, but I felt the agreed price was very fair.

I had an EXCELLENT adjuster, as assigned by USAA!