Given the creativity, quality, and value of Kubota products, your decision to acquire one is a wise one. The Kubota Limited Warranty is included with your purchase and covers your tractor for one or two years, depending on the model and application.
The Kubota Orange Protection Program allows you to renew your coverage by one or two years without interruption.
- Financing is available if you buy a qualified tractor, excavator, or implement at the same time.
- Extends the coverage of both the Basic and Powertrain policies (if applicable)
- Comprehensive Coverage: The Comprehensive Warranty is subject to the same terms, limitations, and exclusions as the Limited Warranty.
- Coverage is fully transferable and stays with the tractor or implement for the term of the purchase.
- Flexibility: Can be purchased at any time before the original, Basic Warranty expires.
Does KTAC cover theft?
Kubota began offering their own insurance package to sell with a finance contract several years ago. If you’ve ever financed a tractor or piece of equipment, you’ll know that financing and insurance go hand in hand. The reason for this is that the money used to fund your tractor is packaged and sold off to banks rather than held by the tractor firm.
After then, specific guarantees about the nature of the loan and the nature of the products on the loan must be made. One of those assurances is that goods will be covered by insurance in the event of a loss. The bank isn’t necessarily going to lose the money and the machine’s worth. For a long time, financing and insurance have been synonymous.
Previously, we had to obtain insurance from outside sources, but Kubota introduced the KTAC product a few years ago. Selling insurance has never been a very pleasurable experience for us. We strive to be as “unused-car-dealery” as possible during the sales process. When you sit down at a salesman’s desk to close a sale, but he comes to you with an extra charge, you get the impression that you’re being sold something that’s a method for them to stretch their profits.
KTAC insurance costs $1.30 per thousand dollars of the tractor’s value on the contract today. We earn $25 as a dealership when we sell KTAC. It’s not something we’re doing only to pad our bank accounts. Kubota has always stated that it is a revenue-neutral program, with the purpose of covering the equipment and making the financing process run as smoothly as possible, hence it is priced quite aggressively. We rarely find an insurance company selling the level of coverage that KTAC offers at the price point that they do when we take the dollar value of the policy and have people browse with other insurance companies.
That’s a brief description of what it is and why we have to sell it, but what has really changed our minds about it is that now that we’ve been doing this for a few years and have made claims and seen the customers’ reactions, it’s turned into a very beneficial thing for our dealership. I’m going to give you four different examples of equipment that are currently in our shop and against which we’re filing claims, as well as the customer stories that go along with them.
You’ll get an extensive list of what’s covered and what’s not covered, as with any insurance program. One thing to keep in mind when it comes to tractor insurance is that homes insurance is often insufficient for covering any piece of equipment. The main reason for this is that because equipment is movable, you may easily drive it off your property and onto another area, and it is no longer insured once you do so. A standard homeowner’s policy is never enough to cover equipment.
KTAC will provide coverage for theft, fire, shattering glass, falling items, crashes, hail, tornadoes, hurricanes, flood, vandalism, rolling the machine over, an earthquake, water damage, and more on and off your property. There are a lot of other things that you would generally think of as acts of God and the like that are protected under KTAC; things like tornadoes, hurricanes, and the like are covered.
Anything fraudulent is an example of something that isn’t allowed. You can’t ruin your tractor on intentionally in order to get a new one; it won’t work. If it is confiscated by the government for some reason, that is not covered. Mechanical breakdowns are not covered by KTAC because they are covered under your warranty. Other types of conditions are covered by insurance, whereas mechanical faults are covered by warranty.
Simple wear and tear for the machine going out is not an insurable thing if you happen to be someone who can put hundreds and hundreds of thousands of hours on a tractor. Finally, nuclear mishaps, of which we are 10 miles from Three Mile Island, as well as war and terrorism, are not covered. KTAC will insure almost any situation that you can get into as an operator, a homeowner, or other similar circumstances.
Another thing to keep in mind is that there will be no insurance adjuster. It’ll come out and inspect your equipment, lowering the worth of what you have. These are complete equipment replacement policies. You’re getting fresh machinery and functional equipment, not something of lesser value. When it comes to you, the machine, and your clients, we at KTAC are the ones that act as the insurance company.
When we sell Kubota items in the field, it’s important to note that we’re selling a high-quality product, one of the best on the market. Kubota performs an excellent job of reliably delivering equipment to us. While we do occasionally make warranty claims, given the volume of tractors we sell, they are rare and far between. When we find issues with machines, they’re almost often caused by the owner or operator, and that’s something that insurance will cover, but not a warranty.
This L-series tractor is an excellent example. A tornado passed through our area a few weeks ago, and the customers in one area had a lot of trees that had fallen down on their land. They then managed to pinch a large branch in the middle of the tractor’s grill guard and the loader while lifting, moving, and pushing some of those trees out of the way. They pushed the hydraulics down and pinched that branch in there, causing the loader to hydraulically tweak and push to the side.
This caused an issue with the quick attachment, as it caused these two components to pull open, causing the mount to no longer rest properly on the boss behind it. This was a simple KTAC claim; there was a damage type occurrence from the customer driving the tractor, therefore KTAC is taking care of fixing this guy’s loader for a $250 deductible.
You won’t believe how long it took us to discover this loader since we were hunting for the orange damaged loader out here, but it’s finally here, though it’s no longer orange. In the instance of this customer, his loader was kept in his shed. His tractor had been parked somewhere else because he had been mowing with it when the shed took fire. As you can see, it wreaked havoc on the loader, melting all of the hydraulic lines, melting the loader stands, and utterly mangled everything.
This is a total loss in the case of this loader. This customer’s loader will be completely replaced by KTAC, and a brand new loader will be installed on his tractor.
The following tractor we have here is also a total loss. This is a Kubota BX25 Backhoe and Tractor Loader. In the case of this customer, his machine went out crashing through the woods and managed to bash down hard enough on top of some pebbles to damage his transmission housing. Given its age, the repair that would have been required for this machine would have rendered it useless. This customer will receive a new tractor because Kubota insurance is a total loss replacement policy. A new tractor, not a depreciated sum for what the tractor is worth now.
You should also be aware that, because this insurance is linked to your financing or can be purchased separately from the tractor, any type of financing agreement directly through KTAC, it may or may not correspond to your warranty. While the whole machine warranty on a tractor like this ends after two years, unless you get an extended power train warranty, the insurance portion can last much longer. That is, in fact, the situation with this device. This would have been outside of the manufacturer’s standard product warranty, but this gentleman’s damage, which occurred five and six years later while the vehicle was still insured, is still covered by KTAC, and so will be paid with the ordinary $250 deductible. Because it’s over here, you’ll note that this BX25 lacks a rear end.
In the case of this customer, he was out on the farm with his tractor and managed to shred his differential. The differential gears are all sitting down here at the bottom of the transmission case, if you look inside the transmission case back here. Another KTAC claim, this time because the customer operated the machine in such a way that the differential was ruined, and the transmission will be repaired or replaced for a $250 deductible.
That’s a quick rundown of the kind of claims we make with KTAC. As you can see, these are all major repairs that can be made at a low cost to the customer because the customer had an excellent insurance policy.
Do you need insurance on a financed tractor?
Tractor accidents do happen, and they happen very regularly, despite what you may believe. The majority of these accidents, according to the Farm Injury Resource Center, are rollovers, accounting for 44 percent of them.
That makes you wonder if you’d have to pay out of pocket if your tractor hurt someone or caused property damage in an accident, or if insurance would cover it. In the United States, do you even need tractor insurance?
If you have a tractor loan, most lenders will need you to maintain insurance on your tractor for the duration of the loan. Insurance is not required if you do not have a loan on your tractor. Overall, having insurance is preferable to not having insurance, as hospital bills, repairs, and even tractor replacement can cost tens of thousands of dollars.
Are you truly considering purchasing your first tractor insurance policy? Then this is the article for you. We’ll go through if you need tractor insurance, where to acquire it, what it covers, and how much it costs in this article. Continue reading!
What is Kubota warranty?
The Kubota Limited Warranty is included with your purchase and covers your tractor for one or two years, depending on the model and application. The Kubota Orange Protection Program allows you to renew your coverage by one or two years without interruption.
What is Kubota KTAC?
Kubota Tractor Acceptance Corporation is a Kubota-Endorsed Property Damage Insurance Agency that provides Kubota equipment owners with excellent protection.
KTAC Insurance Agency has insured approximately 1 million pieces of equipment since its inception in 2007. Our customer base has grown tremendously as a result of our low prices, in-depth knowledge of the Kubota product line, and exceptional service. Customers can expect the same level of quality, innovation, and value from KTAC Insurance Agency as they do from Kubota.
What does inland marine insurance cover?
Property coverage for material, products, or equipment that moves or is transportable, and/or is used in transportation or communication, is known as inland marine insurance. This sort of coverage usually includes covers property that belongs to someone else but is kept at the policyholder’s residence.
How does tractor insurance work?
Tractor insurance protects your tractor from theft and fire damage, as well as insuring you in the event of an accident.
Some farm vehicles, like as vans, 4x4s, pick-up trucks, and other commercial vehicles, may be covered under a van insurance policy instead, especially if they are used largely on the road.
Tractor or agricultural vehicle insurance can cover your largest piece of farming equipment for incidents on the road and on your own private land, whether you have a JCB or a John Deere.
Agricultural vehicle insurance provides a broader range of coverage by combining all of your farm vehicles into a single policy.