Check your Insurance on Classic Modern Tractors
The second-hand tractor market has seen a huge surge in demand, and prices for more simple, mechanically robust machines have rocketed over the last 3 years.
The people buying them are not necessarily collectors but increasingly working farmers, both large and small, who are looking for machines that are reliable, do not have an array of electronics and are capable of being repaired by a local mechanic.
When compared to a new machine at well in excess of £100k, paying anything up to £50,000 for models such as a John Deere 7810,6920 or 7530 appears to be good value. Granted they are likely to have a few thousand hours on them and probably will not become the farm’s mainline tractor but, as a secondary machine doing 500 hours or less per year, they actually represent a good investment. These tractors are unlikely to depreciate in forthcoming years and, in actual fact, may appreciate. There is no way a new machine will not depreciate.
Many farmers will have such a modern classic on their fleet and will have owned it since new or nearly new. As Insurance Brokers reviewing values for insurance purposes, we very often find such tractors are completely undervalued.
In the past few months we have dealt with a number of fires where this type of tractor was badly underinsured, for example an MB Trac 1100 insured for £8,000 when the value was £16,000, John Deere 6410 insured for £15,000 when the value was £21,000 and a New Holland 7840 insured for £8,000 when the value was £14,000. All the customers lost out as each of these machines was a write-off and insurers only paid out the insured value. The annual premium increase on each of them to have been insured for the correct value would have been in the region of £50.
As specialist farm Insurance Brokers, we are reminding our clients to ensure that these older, classic modern tractors are insured for the correct values, the additional premium cost is marginal but the benefit in the event of a claim can be substantial.
Our tips for future modern classic tractors where values increase in future include the following models:
John Deere 7530, 7930, 8520,8530,6920,6620,6820
JCB Fastrac 2140, 2155, 3185