How many of you just have liability insurance???

[JD Seller]

The post below about renting a car made me think about insurance. I have just carried liability insurance for years on my cars and pickups. I have not bought a new car or pickup since 1991. Also I have not had any car payments either. So no lending institution was "requiring" I carry "full" coverage.

My reason is the amount of money "saved" each year. On just a 4wd of just about any age full coverage is going to be right around $1000 per year. Newer ones can easily be double that. My liability coverage for my pickups averages around $350. So that is $650, or more, saved on each one each year. I have four trucks titled in my name so that would make the saving be over $2500 each year. When you count the car and grain trucks plus other vehicles I estimate that the saving is close to $7500 on everything. That adds up real fast. I can cover any damage and still be well ahead.

I do try to do some common sense things like not park them all in the same building and if there is bad weather coming (hail) I park them under roof.

Now on farm equipment the coverage for fire/theft is very reasonable so I carry it on everything. You can insure a $40K tractor for a few hundred each year. That is reasonable enough to insure it.


So how many of you just have liability????

Also how do you fellows that do not farm insure your tractors??? I would think it would be a headache on a homeowner policy.

Have any of you checked on weather your tractor is covered on tractor rides. MY agent says that your normal farm policy does not cover them when you are using them for an off farm practice like a tractor ride. IS he right???

 

[Bud Sather in MT]

I have carried just liability insurance on my vehicles since early 90"s.
Bud

 

[omahagreg]

We used to have vehicles that weren't worth anything-just had liability! Now we have nicer vehicles-one we have full coverage, my work truck is on a commercial policy and has liability and comprehensive only! Collision was very costly on the commercial policy! BUT, we have so many uninsured in Omaha, without full coverage you are on your own if hit by an uninsured!

 

[Geo-TH,In]

JD Seller,
I don't think you can get uninsured coverage with just liability insurance. I definately think you need a blanket coverage that goes way above regular insurance. Hospital costs are going through the roof, not to mention lawyers go after people who have deep pockets. So if you own nothing, save yourself some money.

I'm insurance poor. I pay over $1000 a month for all my insurances, medicare B&D, car, truck, home, tractors, mule, rental properties. That's almost what I pay in taxes each month. Most of my insurance as tax deductable too. So if I were to save $3000 on business insurance I pay $1000 more in taxes, ouch. Guess I love paying insurance and taxes.

I don't think it's worth the savings.
George

 

[TomA in CA]

I carry comprehensive in addition to liability. It s quite affordable. It covers deer damage and fire theft. I had a load of hay catch fire and total truck. Insurance paid well.

 

[Billy Shafer]

Liability is all I can afford.

 

[JD Seller]

George I do have a higher umbrella policy for liability. It costs under $500 per year for it. I am not talking about only carrying the state minimum insurance.

I would bet that you could easily cut that $1000 to a third or half an still be covered for the things your worrying about. Your talking about liability and uninsured motorist. I am talking about just replacing/repairing the physical vehicles themselves.

You need to work on reducing your insurance cost and taxes like you did on your oil filters. The rewards would be better. LOL

 

[MN Scott]

I carry liability and comprehensive. We have lots of deer and comp is very reasonable and also protects against theft and fire. The wife's 08 Buick has a salvage title so the insurance company will not even put collision on it.

 

[Pair-a-dice farm]

I only carry liability on 3 of my trucks but on my 2005 Dodge and wife's car I have full coverage but for a $500K policy both are less than $400 a year each. For the just liability policies they are less than $200 each. I have a farm liability policy that covers a cow getting on the road and accidents on the farm but I don't insure any equipment since it's all old. If something gets my equipment it may be time to retire.

 

[bison]

I'am insurance poor.
I carry only liability on the 4 vehicles we own at $120 a year each.
The house and contents carry fire insurance.
The ranch has liability insurance only.
None of the tractors and equipment are insured.
We have no life insurance either.

 

[John M]

Wow, I pay 1200 a year, on 4 vehicles, full coverage. In SC if you owe any money on a vehicle, you must carry full coverage. Also my wife has to have full coverage on her car for work. I have 3 vehicles not paid for, and the other that is is driven by my son, so Im not taking any chances on it being totaled by him. (In a couple of more years it will be signed over to him, so he can do what he wants at that point.)My homeowners is 700 a year, and yes I COULD get a discount if I combined them with my auto policy, but I like the coverage I have on my house now, and my auto policy company couldn't come close to the coverage. I guess the "experts" who say SC has the highes rates in the country are wrong. BTW, I have a 2013, a 2012, a 2006 and an 03 vehicles, all on my auto policy

 

[Tony Vidlak]

Here in Omaha I have liability on my pickup its a 92 at 300,000 instead of your basic 100,000 plus underinsured and uninsured full coverage on my newer vehicle and full coverage on my motorcycle at $1235. a year for all three.

 

[VaTom]

My insurance company was surprised when I declined full coverage on the Audi TT Quattro I bought last winter. Liability only ($126/yr), but as you suggested, far from state minimum costs very little more. That price struck me as very reasonable for substantial liability coverage. I could replace the car in 2 years of full coverage insurance savings. Many reasons why I have no interest in a new car.

Once was enough, that was 1973. We picked it up in Italy.

Liability for my deuce-and-a-half is only $207/yr, rated as 100% farm use. Heavy enough to destroy almost anything I hit, minimum liability would be minimal savings for the increased risk.

My insurance company likes me. Though they shelled out $23k when a large oak hit an outbuilding. Roof damage only, strong building. Netted me $20k for my labor.

My homeowners' policy covers my tractors here (all unlicensed vehicles, including my Link-Belt crane). Take one to do work elsewhere and they are not covered. I don't do tractor rides, so I never asked.

Non-mandated insurance is about handling risk. A decision we all make according to what we have to lose, and how risk-averse we are.

 

[Ray]

I carry a million dollar liability policy over whatever the vehicles have.It doesn't cost much and the way people are sue happy if you own a farm or anything the lawyers will foam at the mouth.The insurance company lawyers would fight pretty hard to not have to pay out that million.

 

[charlie n]

My wife has been in the insurance industry for her entire working career.40 plus years.It's the only job she's ever had.She's seen a lot of bad things happen to people who thought they had it covered.That being said if it's insurable we got it insured.
Good Luck everbody.

 

[Cliff Nelson]

We have liability, uninsured motorist, and no-deductible comprehensive on our vehicles. Comprehensive has paid well over the years (Wife is a deer magnet) and does not cost much to carry. I think we pay on average $300 per six months for each vehicle. Clean driving record and no claims other than deer helps keep the cost down.

 

[Ken Macfarlane]

Liability only, all our cars and trucks are worth in the 1000-2000$ range.

Tractors are all fully insured, so are tools and shop. None of the farm equipment itself is insured though.

 

[JOCCO]

JD: Insurance agent told me after 7 years and value drops to a figure of so much full coverage was not worth it. As for tractors boats etc you must find a company that does them. Most people insure a new tractor rarely the implement and old tractors again not worth it. One issue is if old tractor is worth $2000 a slashed tire would only pay like $150 and not meet deducabile Tractors have liability coverage on the farm not for hire out jobs.

 

[bison]

(quoted from post at 09:39:17 08/17/14) I carry a million dollar liability policy over whatever the vehicles have.It doesn't cost much and the way people are sue happy if you own a farm or anything the lawyers will foam at the mouth.The insurance company lawyers would fight pretty hard to not have to pay out that million.

million dollar farm liability doesn't cut it no more.
Sue happy lawyers will sue for whatever you are worth beyond the insurance coverage.

 

[ericlb]

i do too, my reasons are mainly cost, also my stuff is old i will not own a new one, new as in anything computer controled, the other reason is with my background i can fix them as well as anybody including paint so it doesnt make sence to try to carry full coverage, assuming it even exists for trucks that are 30 years old for the newest one

 

[PJH]

Liability here, can't remember the limit, but I bumped it way up a few years ago when I had a lot of city driving ahead of me.

I don't know about tractor insurance on tractor drives, but my agent warned me that my Grasshopper mower would NOT be covered anytime it's being hauled. "Insurance coverage is in effect as long as the mower wheels are on the ground", sez the man. I think I could add a rider to my policy that would cover it at all times, but it gives me a good excuse to not haul it.

 

[redforlife]

I have only carried liability on any vehicle I ever owned. Drive older vehicles too. That way the value is lower and you not only save money on no full coverage insurance but property taxes as well. I totaled a pick up one time and just had to eat it. Hit numerous deer but luckly with not any real big damage. Haven't ever really figure it up, but know that thus far, I am way ahead even after the losses that I have had.

 

[37chief]

I have probably saved a lot through the years also by only buying liability insurance on four of my vehicles. I do carry collision coverage on my 08 ford Edge. About time to cancel that. I don't carry any coverage on my tractors, but have liability on my business. Stan

 

[John T]

Ive owned a ton of vehicles on which I only carried Liability Insurance (but I pay cash also) For the most part I choose to be self insured regarding collision and comprehensive. Its a personal choice subject to your financial situation IE NO RIGHT OR WRONG ANSWERS HERE

John T

 

[GeneMO]

(quoted from post at 09:39:17 08/17/14) I carry a million dollar liability policy over whatever the vehicles have.It doesn't cost much and the way people are sue happy if you own a farm or anything the lawyers will foam at the mouth.The insurance company lawyers would fight pretty hard to not have to pay out that million.

There is another line of thought on having lots of insurance. You make yourself a bigger target. An ambulance chaser wont mess with you if you dont have much insurance. But, if you have property they can come after, then it's not worth the risk of not having it.

Personally I think it should be a law that "looser pays" on lawsuits. If they sue you for some BS, and they loose, then they should have to pay all of your costs to defend against them.

Plus there should be a season and bounty on lawyers. Bring their ears into the county clerks office and collect $50 just like we use to do with coyotes here.

Gene

 

[kj@junction]

liability on older pickup full on the suburban

 

[Paul from MI]

Be a bit careful if you show any of your tractors, or take them on tractor rides. My farm policy covers any of my farm equipment, even on the road, but does not cover a tractor if I take it to a show, ride, or fair. Those are not farming operations, so no coverage. The tractors I show I have a separate policy through Hagerty, the collector car insurance folks. Price is very reasonable. Truck insurance will cover your trailer, but not the load--at least here in Michigan.

 

[Geo-TH,In]

JD Seller,
If you can still be covered with minimum liability, go for it. My agent warned me about not doing it.

Perhaps my insurance company is not telling me the truth.

The truth is I have a commerical building that is a poision pill so to speak when it comes to insurance companies.

Some insurance companies won't insure shingles over 15 years old. Other companies want to prorate shingles. So I would have to pay not only my $1500 deductable, I would get hit with prorating. I had a hail claim, very common where I live. Wind and hail claims happen more than I like. The claim figured at $4300. Insurance company sent me a $1550. OUCH.

So I went to an insurance broker. It took weeks for them to find a company who would sell what I wanted. Which was to only pay deductable and to cover my commerical building. It wasn't a year later I had 2 properties where trees fell on houses and garage. I'm happy to have switched.

I know from experience I could find something cheaper, but not get what I want. I even had state farm insure the commercial building for 3 months, before I got a letter telling in my insurance would be cancelled in 30 days. I was lucky to get another company pick me up. Then I learned what I had wasn't very good after the hail storm.

So yes I pay too much, very lucky to get what I want, and I take it off my taxes. I really need to get rid of the commercial property.

George

 

[MarkB_MI]

Here in Michigan we have no-fault insurance. If you carry only liability insurance and are involved in an accident, you can only collect $400 if the other driver is at fault. For this reason, it's a good idea to carry "broad" collision on newer vehicles even if they're paid for.

 

[Ted in NE-OH]

My tractors are covered by my Home Owners insurance. It's a hobby for me.

My 2010 car has comprehensive and my 95 truck does not.

 

[oldtanker]

Full coverage here. Not rich or poor by any means but just don't have 10 or 12 K setting around to replace a vehicle if need be.

Rick

 

[JD Seller]

George I carry a 3 mill liability policy so I am not low balling in the basement. You really need to work at insurance.

I was along time customer of Farm Bureau. I noticed my premiums had climbed over 30% in two years with zero losses. Looked back over ten years and the cost had doubled. I questioned the local agent. He had me insured for everything short of the sky falling. Everything added to my cost and his pay check. I went price shopping and kept the main amounts of coverage the same but with higher deductibles and less frills. I can cover a $5000 roof myself. The saved premiums from just a year or two will have that back and more. Then I am banking saved money.

If you don't want any risk then you had better dump all of the rentals and commercial properties. There is risk with them all.

I would rather hold money in reserve and pay myself over PAYING an insurance company to do the same thing for me less their cut.

As for the commercial property. SELL IT NOW!!!! The economy is better now so dump that turkey. Even at a slight loss you will be better off in the long run. You can take that same amount of money and put it into residential property an make a much better return. Plus liquidation down the road is much easier. A house can sell to several type of buyers.

A commercial property is just too confined to really make good money unless your in a large urban area. Even then you had better be in a "hot" area or you can still lose your shirt. Several lower priced residential properties will return more on your investment of a like amount in one commercial property.

 

[NCWayne]

I"ve had nothing but liability on my vehicles for a long time now, and do it for the same reason you say. Basically I save enough money to buy another good, used truck, or whatever should something ever happen to mine.

Now I keep full coverage on my wife"s vehicles for the simple fact that she does way more driving in traffic than I do, and I try to keep her in a little newer vehicles than I drive myself. In any case the cost to keep the extra insurance on them is well worth it -vs- the cost to replace any of them.

 

[Geo-TH,In]

JD Seller,
Farm Bureau is the company that is telling customers they won't cover shingles over 15 years. Farm Bureau is the company I dropped after the hail storm. They told it was impossible to get shingles replaced without depreciating them. Farm Bureau is loosing clients at an alarming rate.

Farm Bureau was wrong about me getting what I wanted.

I'm 65, been retired for 10 years, living on pension and rental income. If I live to 70 I plan to sell everything and get a very nice SS check. SS income and 401 investments will only jump me to another tax bracket if I don't go out of business. So going out of business is looking like a very good option at this point. I won't live long enough to spend it all. Then the insurance company tax man won't be in my pockets as much. I will also be able to shop around.
George

 

[JRSutton]

I drive a $1500 '88 f150 - it's a pretty easy decision.

If I ever total it... so what?

 

[Owen Aaland]

I have never had anything other than liability and uninsured motorist insurance on any of my vehicles. If I did most of what I drive would be totaled if I dented a fender. :lol:

I serviced Schwan's trucks here for about 25 years. In all that time they never carried anything but liability on their vehicles. They seldom ran any trucks longer than five years but with 7000 trucks it is cheaper to self insure than to go to an outside company.

 

[Bret4207]

I was paying about $4800.00 a year in auto insurance. Thankfully my oldest girl finally got her own insurance and now it's down to $3Kish. Oldest boy is about to get his auto off my policy and then it should drop by half. Only my wifes 2 vehicles will have full coverage as they have loans. My Burb and F350 have comprehensive simply because it is something like $3.00 a month more and includes full glass coverage. In this part of the country stone cracks are a sure thing once every 3 years or so it seems.

 

[Harold Hubbard]

All my vehicles together could be totalled for less than the deductible on affordable collision coverage. I do carry high deductible comprehensive mostly for the glass, and for the emergency road service rider. One wrecker call in five years will more than pay for that. The plow trucks have full commercial liability, no way around that, and the farm is insured, fire theft, and liability,

 

[buickanddeere]

There is liability, collision and comprehensive. Comprehensive is pretty cheap and gives good coverage together with liability.

 

[Dean Olson]

Full coverage till the vehicle becomes worth less than the cost of the insurance.