KTAC insurance on cash purchase vs CNH insurance

[SageHill]

I'm waiting for my L3901 tractor on order, so doing various investigations, one of which is insurance.

I'm using the equine discount program, so there is no special financing offer to take advantage of - only "standard rate" financing which would be at 6.59% 12 months to 6.75% 60 month, which means "no thank you, I'll pay cash".

Talking to KTAC, it turns out the full replacement cost only is applied to financed purchase for the term of the loan. Thus I would be paying about $470 per year but coverage is actual cash value. It turns that CHN insurance offers insurance (see https://www.cnhindustrialcapital.co.../Documents/50024_CIH_PDI_trifold_US_FINAL.pdf ) for any brand including Kubota. The policy offers full replacement coverage for a premium of $267.78. Note the deductible is $500 vs KTAC $250, but the lower premium covers the majority of this difference.

Has anyone had any experience with CNH?

Has anyone had a claim with KTAC that didn't have Kubota financing in place?

Should I not be concerned about not having full replacement coverage?

 

[SidecarFlip]

I use CNH Capital and their equipment insurance. Not an issue. I think they want you to finance so they can build in the finance cost into the unit and claim zero percent. Nothing is free despite what they say.

 

[BAP]

Have you pushed the pencil around and figured out if you would be better off not taking the equine discount program and taking the regular specials for the L models? If you took the regular you would get 0% plus a discount and be able to get Kubota’s insurance. Almost looks to me without running special figures that it might be a cheaper route.

 

[SageHill]

Only one dealer (3 locations) within 100 miles of my house. I got quote originally without the equine discount -- didn't know about the American Cutter Horse Association discount at that time. Best the dealer was offering was 2K discount on tractor and loader, $700 two implement discount, and $1400 cash discount, so $4100 discount. The equine discount provides 20% off tractor and Land Pride attachments. For my configuration, this is a $6650 discount.

Even paying cash, I can get KTAC insurance. It's price is exactly the same premium (cost per $1000), just any total loss would be at ACV and not full replacement cost. I plan to have KTAC show me some ACV amounts because given allegedly tractors value holding may lesson the "not replacement cost" concern.

Having said that, it would be nice to hear any CNH claim experience.

 

[GeoHorn]

Are you planning to destroy your tractor? Are you planning for it to be stolen? Are you expecting it to blow up?

Insurance is a BET. You’re betting your tractor will meet a horrible fate (but you will pamper it more than your wife....LOL). Your insurance underwriter is betting you’ll pamper it and guard it with your life because they know how crazy new tractor owners are.

You are putting your pencil to discounts vs financing... then giving your savings away to the insurance company.

It strikes me like extended warranties... Kubota spends a fortune making their tractors as good as they can, and market them on the premise they are the best and most durable in the marketplace and to prove to you that it was assembled correctly, without any mistakes...they’ll even warranty it to get you past your initial fears..... Then they up-sell you on the product they promised you was really REALLY was assembled with EXTRA care....but at the closing-table they instill a fear in you...and uncertainty that THIS tractor might actually have problem at som point.... They’ll then take your BET..... and enjoy all that additional profit for them.... Foolish for you.

Fear of the unknown. We should have such insurance on our love-lives....

Save the money you’ve haggled for at the buying table....skip the additional insurance and extended warranties. IMO

 

[SidecarFlip]

I'm with George, I never had any extended warranty on any Kubota I bought (I'm on my 9th and 10th Kubota's.), and only one wasn't bought new.

Only reason I got an extended warranty on my car was all the lowest bidder electronic crap and candidly, It wasn't all that much.

For the most part they don't break. There are exceptions however, but usually those exceptions are emissions related and Kubota has to stand good on emissions related issues for 5 years, it's the law. They have no choice on that.

 

[SidecarFlip]

Why do you think insurance companies have nice offices and pay their staff big money. They know that they will win the insurance bet 95% of the time. Nothing more than a legal Ponzi scheme.

 

[D2Cat]

Geo, insurance is a bet, however I make sure I have all vehicles, structures, and liabilities covered and cost determined by amount I wish to self insure for.

There are a lot of folks who apparently think they will never get sick enough to require medical treatment. They go through life with out medical insurance!

I've seen a replaced roof get destroyed within 6 weeks of the replacement. The deductible covered the cost of another replacement. It's all in what a person is comfortable with.

Interesting concept, nice building and good pay is somehow bad!

 

[SageHill]

I'm not planning on destroying the tractor. I do want it insured. Initially, it's going to be stored outside. So, it will be at risk to theft, wildfire, and pests (knock on wood, I haven't had an issue with cars, but others in this area have had expensive damage from wires chewed under the hoods). Then factor in it being used by first time tractor owner with slopes and unknown / uneven ground. Yes, everything will be approached cautiously in terms of operating it, but given that even using the seat of the pants pucker factor, one unseen rock or hole in the initial brush cut can quickly change the CGI.

 

[mdhughes]

The policy that I took out with then when I made my last payment has, "Actual Cash Value" means the retail value of the Covered Property of like kind and quality on the Date of Loss.

To me, that you would get a replacement tractor that is in the same as the one you have is better than not getting anything. $37.50 a month to cover my L3901, LA525 FEL and BH77 up to $28,850 is a pretty good deal.

 

[Palmettokat]

As a 34 years as insurance agent you buy insurance to protect against a loss you can not afford. If you can afford the loss of your tractor then don't insure it. If it would be impossible or very hard to recover the loss then insure it. I have kept insurance on my tractors till their value was such I could afford the loss. On my 5th tractor. On my 4th had insurance to replace one rear fender and fel. One accident with hitch pin working out and the other operator error or miss calculated risk might be better in term in removed tree from my mother in laws roof.

 

[GeoHorn]

Geo, insurance is a bet, however I make sure I have all vehicles, structures, and liabilities covered and cost determined by amount I wish to self insure for.

There are a lot of folks who apparently think they will never get sick enough to require medical treatment. They go through life with out medical insurance!

I've seen a replaced roof get destroyed within 6 weeks of the replacement. The deductible covered the cost of another replacement. It's all in what a person is comfortable with.

Interesting concept, nice building and good pay is somehow bad!

The insurance you buy for your other ”vehicles, structures, an liabilities” ...is NOT the kind of insurance being discussed in this thread.
The other vehicle insurance you buy is for collision and liability because you operate it on the STREET and in TRAFFIC. You plan to do that with a tractor?
The insurance you buy on a structure or house does not cover theft of the building. It does not cover termites, water damage (flood is a different insurance and separate also from this thread.)
It does not cover wear and tear such as an extended warranty the dealer tries to upsell you on.
It’s likely you will be adequately covered by your homeowner’s policy with little/no need for addt’l.

I'm not planning on destroying the tractor. I do want it insured. Initially, it's going to be stored outside. So, it will be at risk to theft, wildfire, and pests (knock on wood, I haven't had an issue with cars, but others in this area have had expensive damage from wires chewed under the hoods). Then factor in it being used by first time tractor owner with slopes and unknown / uneven ground. Yes, everything will be approached cautiously in terms of operating it, but given that even using the seat of the pants pucker factor, one unseen rock or hole in the initial brush cut can quickly change the CGI.

If you list it with your home insurance you’ll find it’s already covered you for theft and liability. Any damage from your operations such as you describe... will be YOUR fault and not likely covered by insurance. Mice chewing your wiring is not likely to be covered and even if it were, it would not likely exceed your deductible... and since you stored it outdoors you will likely be found to not have taken “due precautions”. If you DO store it outside, for goodness sakes run a heavy locked chain thru all the wheels to slow down a thief, and cover it with a tarp. Put a mouse-trap under the hood with some peanut butter on it.

The policy that I took out with then when I made my last payment has, "Actual Cash Value" means the retail value of the Covered Property of like kind and quality on the Date of Loss.

To me, that you would get a replacement tractor that is in the same as the one you have is better than not getting anything. $37.50 a month to cover my L3901, LA525 FEL and BH77 up to $28,850 is a pretty good deal.

”Actual Cash Value” does NOT cover retail value. It covers USED value...and it is minus the deductible.
A mouse-eaten, Mary-Kay-Pink because it’s stored outdoors, ...depreciated for being used...and less the deductible.... is NOT what YOU are thinking when you think “Actual Cash Value”. They are NOT going to buy you a new replacement tractor.

To TOP that all off... most such policies sold by the dealer also require the policy-holder to maintain it according to the factory schedule. You gonna change that oil and filter and adjust those valves on schedule...without ever missing a deadline..? YOu gonna be able to document it? You gonna use factory fluids, filters and certified tooling? Can you prove it?

It’s your money, gentlemen. You get to put it where you want.
I never believe Chicken-Little when he is a salesman.

 

[mdhughes]

”Actual Cash Value” does NOT cover retail value. It covers USED value...and it is minus the deductible.
A mouse-eaten, Mary-Kay-Pink because it’s stored outdoors, ...depreciated for being used...and less the deductible.... is NOT what YOU are thinking when you think “Actual Cash Value”. They are NOT going to buy you a new replacement tractor.

"Actual Cash Value" means the retail value of the Covered Property of like kind and quality on the Date of Loss.

That comes from the insurance policy itself, that isn't my definition. So if you have a problem with the definition, take it up with the insurance company.

 

[GeoHorn]

"Actual Cash Value" means the retail value of the Covered Property of like kind and quality on the Date of Loss.

That comes from the insurance policy itself, that isn't my definition. So if you have a problem with the definition, take it up with the insurance company.

I don’t have a problem with it... YOU do If you believe you’re going to get your new tractor replaced with another new tractor with no more money from YOU. “of like kind and quality on the Date of Loss.” Means exactly that.... minus deductible, depreciation, wear/tear, and any modifications/features you’ve added to customize it to your preference ...I.E., Actual Cash Value is AT THE TIME OF THE SUFFERED-LOSS. I’m speaking from experience, having once owned such a policy and being forced to settle for less than what I thought was deserved. Good luck with yours.

PS: Also minus any insurance premiums you’ve paid.

 

[GeoHorn]

Geo, insurance is a bet, however I make sure I have all vehicles, structures, and liabilities covered and cost determined by amount I wish to self insure for.

There are a lot of folks who apparently think they will never get sick enough to require medical treatment. They go through life with out medical insurance!

I've seen a replaced roof get destroyed within 6 weeks of the replacement. The deductible covered the cost of another replacement. It's all in what a person is comfortable with.

Interesting concept, nice building and good pay is somehow bad!

This has become an interesting thread for me because of the direct-experience I’ve had regarding this type of insurance. Last June (2019) a metal roof was taken off my house while I was out of state on a trip. The ins co claimed it was “straight line wind damage” despite the fact that numerous houses in this area suffered similar damage. Mature hardwood trees were blown down in this and surrounding counties. I had insurance which included “cosmetic damage to roof”... yet the ins co only paid for 1/4 of my roof.... I had to cover the other 3/4 which was made of materials no longer available. The ”new” replacement metal could not be matched to the 10-year-old existing/remaining roof. I lost $40K out of MY pocket over this “interpretation” of the policy. I had paid good money for 10 years for the “cosmetic” rider on that policy, but the ins co (STATE FARM ARE YOU LISTENING?) ... refused to agree that shiney new standing-seam metal on 1/4 of my roof next to contrasting grey/aged/textured metal is a cosmetic issue. The contrast of those different materials (due to mfr’g differences in double-galvalume in the industry) was definitely “cosmetic”. Anyone who is not blind would instantly blink and ask...”What happened to your roof?... because it looks like the bldg was made by two different contractors half-way around the world from each other. Adding insult to injury was the fact I’d tried every year for the full ten years to get the agency to DROP that cosmetic coverage premium ... but their sales-pitch was so convincing to my wife that it just wasn’t worth the argument for me.
$40K out MY pocket to make the roof consistent again.
I don’t quite understand the comment “The deductible covered the cost of another replacement.”
Not only does the deductible come out of the policy-holder’s pocket... it never covers cost of replacement. On TOP of that, the replacment roof value is always reduced by “depreciated value” when the ins co‘s adjuster report is made....yet inflation actually makes the roof more expensive to replace in terms of real dollars.
I bought insurance to “make me whole” again after suffering the loss and paying my deductible. When it doesn’t ... then that “replacement value” phrase is grossly misleading.... downright dishonest, IMO.

 

[SidecarFlip]

All I know is, for years we (my wife and I) have been paying the light bill at out insurance carrier and at the agent's office too as he gets a cut of every premium we pay..........