Tractor Mike's video: Should I Buy Insurance from Deere or any other manufacturer When I Buy a New Tractor

Got a question from Steven. He bought a new Deere tractor using their 0% for 60 months program. The payments included an insurance policy on the tractor while it is financed, rolled into the payment stream. He wants to know if that's a good deal or if he would have saved money by using his homeowner's policy. So, today we discuss tractor insurance. It's very important to have your tractor insured. Tractor theft is a huge problem and since they don't have titles, they're easy prey for thieves. Also, anytime you're bush hogging and it is dry and you get combustible plant material together with a hot engine, you have a recipe for a fire. So, there's danger of a tractor walking off or burning up. First point today is, whoever you get insurance from, try to get a "full replacement value" policy. Once your tractor leaves the dealer's lot, it loses a big chunk of value. Also, good used tractors are very hard to find. So, if you have a loss of a nearly-new tractor and your insurance only covers the current value of it, you would likely have to make up the difference to get a comparable machine. Many times it doesn't cost that much more to get full replacement value insurance, but it's not always given as an option. Ask for it and buy it if it's not cost prohibitive. Second point is to check the difference between insuring with your homeowner's policy or using the manufacturer's program. Compare what is covered, what type of settlement you would receive and the cost. Third point, don't be surprised if that manufacturer-sponsored insurance isn't a great deal. When you purchase and finance a new tractor, you're required to show proof of insurance before it leaves the lot. The manufacturer generally has no way to check during the life of the contract to see if the insurance policy is still active. By offering you insurance rolled into the payment stream, every time you send that monthly check, you've paid for the insurance. Most companies will offer a great insurance program in exchange for the peace of mind that their asset is always covered. Finally, if you do have a loss, the manufacturer will likely be on your side in trying to get a good settlement. That's because they generally farm the insurance out to another company in that industry. They're probably a big account for that company and so they have some clout. If something happens to your tractor they want to sell you another one to keep the factories running and the stock price high. So, they want to see you collect all you can from them and will be on your side if any disagreements happen should a loss occur. Bottom line is, that insurance policy that the salesperson is trying to get you to purchase may be a great deal. Check they're price to make sure, but it might be something you want to sign up for when buying your new tractor. LINKS YOU NEED TO KNOW ABOUT... The Tractor Fun Store: https://asktractormike.com/products-for-sale/ Support the Tractor Mike Channel: https://www.patreon.com/TractorMike Visit the Tractor Mike website: http://asktractormike.com/ Visit Facebook Page: https://www.facebook.com/Ask-Tractor-Mike-312112962245304/ Copyright 2021 Tractor Mike LLC