The right insurance protection for your agricultural vehicles is essential and is part of the basic protection of your agricultural business. Tractor insurance or insurance for agricultural tractors – regardless of whether it is a tractor, tractor, tractor, or tractor unit – protects you from immense costs in the event of a claim. Because we often hear the sentence “I thought …!” From our customers in the event of damage. In this article, we give you a brief overview of how you can properly insure tractors, trailers and you can get your tractor insurance quote with full satisfaction.
As the name suggests, motor vehicle liability insurance for tractors is one of the few compulsory insurances. Liability regulates property damage and personal injury to third parties. Our most expensive damage in this area was personal injury with around 500,000 USD. Partial coverage is also still a term for many. The dangers of fire, explosion, and theft, forces of nature, glass breakage, short circuit damage, animal bites and damage caused by collisions with animals are insured.
Most common insurance damage to tractors
Glass breakage is by far the most common damage to tractors. The most expensive damage in the area of partially comprehensive insurance is total loss, which is usually the result of a fire. With comprehensive insurance, in the event of a total loss, destruction or loss, the replacement value minus the residual value and the deductible is compensated.
Insurers usually compensate the replacement value minus the residual value
The residual values are determined using appropriate stock exchanges. When it comes to replacement values, there are regularly different perspectives between customers and insurers. Here we recommend our customers to have the reports that have been prepared checked. The problem is, many automotive experts (and that’s not an allegation) just don’t know their way around agriculture.
A practical example of this: In 2020 one of our customers burned down a tractor. The partially comprehensive insurer reimbursed a replacement value of around USD 15,000. The problem: Who would want to buy a used tractor that they don’t know? The solution was found quickly. Our customer had the inventory policy with the right insurer. This compensated for the share of the new value of a comparable tractor. In this specific case, at least USD 45,000. Happy customer! The misconceptions begin with fully comprehensive insurance. Unfortunately, the word full suggests that everything is there! Of course, it’s nothing like it!
Scope of the tractor insurance
Fully comprehensive insurance covers accidents and malicious or malicious acts. The definition of an accident is crucial here. An accident is an event that suddenly acts on the vehicle from the outside with mechanical force. Here’s an example for you as well: Customer was driving down a sloping dirt road. When crossing a bump, the drive shaft tore off and the entire team landed on a tree. Fortunately, nothing happened to the driver. Repair damage of USD 20,000 was incurred on the tractor. Now it comes, there is NO accidental damage.
Damage to the vehicle that is solely caused by braking
- Damage to the vehicle that occurs solely as a result of an operating process (incorrect operation)
- Damage to the vehicle that has its sole cause in material fatigue, overuse or wear,
- Damage between the towing and towed vehicle or trailer without external influence
- Torsion damage
These exclusions hold enormous potential for conflict in the event of damage. Therefore, from our point of view, a fully comprehensive insurance for tractors or agricultural tractors makes little sense. We therefore always offer fully comprehensive insurance with an additional clause. In this clause it says in the same way: Insurance cover exists in the event of damage to the vehicle due to unforeseen and sudden braking, operational and pure breakage damage.
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