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Insuring Antique Tractors What You Should Know
Q: What are the requirements for coverage on and antique tractor?
A: It must be 30 years old or older. The tractor must be in restored or excellent condition or in the process of an active restoration. It should only be used in a manner consistent with owning a "collectible" vehicle and cannot be used for active farming. The tractor must be kept in a locked garage or other storage facility. It must have a minimum value of $3,500.
Q: What are the different kinds of insurance coverage?
A: Most companies offer 3 types of vehicle insurance.
Actual Cash Value (ACV) coverage insures most everyday vehicles and pays out a depreciated book value in the event of a claim. The older a vehicle is on an ACV policy, the less value it has.
Stated Value policies are better than ACV because they allow you to state a value for your vehicle greater than its depreciated book value. However, Stated Value policies generally require the insurance company only to pay "up to" the stated amount, and the vehicles can depreciate in value.
Agreed Value insurance policies guarantee you will get all of yor money back in the event of a total loss. There is no depreciation of a vehicle's value with an Agreed Value policy.
Q: Am I limited to driving my collectible only in parades or shows?
A: Enthusiasts like to share their collector vehicles with the public, but they also enjoy simply operating them for an occasional "tuneup" drive or a pleasure trip on a beautiful day. Check with your company.
Q: Are there other usage limitations?
A: Yes. Most specialty insurance programs do not allow antique tractors to be used for the commercial transportation of goods or passengers, organized tractor pulls, or active farming.
Q: What is the determining factor in computing an annual premium ?
A: Because insurance is regulated by each state, premium computations vary slightly throughout the country. Static collections of tractors that rarely move can be covered under "comprehensive" coverage for fire, theft, vandalism, and natural disasters. Additional coverage is available for tractors that are trailered to events,which covers trailering incidents as well as loading/unloading claims. Liability coverage in most states is a one-time charge per collection rather than per vehicle.
Q: How do you value an antique tractor?
A: Many insurance companies purchase the Hotline Antique Tractor Guide to use as a reference to determine a fair value for the owner and insurance company to agree on. If the value submitted by the owner seems excessive, the company will ask for additional value documentation, and photos.
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Comments
The actual cash value is a joke. How can someone say what a ballpark value is on an antique tractor? Some are as good as they were from the showroom and others look like something straight out of a scrap yard.
Who ever come up with that idea must be an idiot
c'mon don't be so naive. I don't think that is what is meant by actual cash value. I believe your agent comes out and looks at your tractor and comes to an agreement with you on your tractor is worth.
It is a good idea to shop around for a carrier that specializes in insuring collectables. Your run of the mill agent may not be equipped to determine the value by looking at your tractor. Some pretty ratty tractors may be a gold mine as far as collectability, even in their natural state.