Warning over correct tractor values for insurance cover

Second-hand tractor values are often higher than many owners appreciate. This means that when they are lost through fire or another insured risk, they cost far more to replace than their insured value.

The second-hand tractor market has seen a huge surge in demand, with prices for more simple, mechanically robust machines rocketing over the past three years, says Nigel Wellings, a director of broker Acres Insurance.

“When compared with a new machine at well in excess of £100,000, paying anything up to £50,000 for models such as a John Deere 7810, 6920 or 7530 appears to be good value,” said Mr Wellings.

“Many farmers will have such a modern classic in their fleet, and will have owned it since new or nearly new. They may not realise that many of these are now viewed as classic in-demand modern tractors.

“Granted, they are likely to have a few thousand hours on them, and probably will not become the farm’s mainline tractor.

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“However, as a secondary machine, doing 500 hours or less a year, they actually represent a good investment,” he adds.

“In the past few months, we have dealt with a number of fires where this type of tractor was badly underinsured,” says Mr Wellings.

“For example, we saw an MB Trac 1100 insured for £8,000, when the value was £16,000, a 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.”

Buyers are looking for machines that are reliable, do not have an array of electronics, and are capable of being repaired by a local mechanic, says Mr Wellings.

“These tractors are unlikely to depreciate in forthcoming years and, in actual fact, may even appreciate. There is no way a new machine will not depreciate.”

Acres says future modern classic tractors, where values will increase, include the following models, although this is not an exhaustive list:

John Deere 7530, 7930, 8520, 8530, 6920, 6620, 6820

• Fendt 936, 820, 716
• JCB Fastrac 2140, 2155, 3185
• New Holland 7840, 8340, TM150/155/165
• Case 5140/5150, all Magnum models
• All MB Tracs and Unimogs
• Challenger 45 & 55