Insurance.

[Sprayer 1]

How do insurance companies work out the cost to insure farm vehicles, is it a percentage of the value?

 

[Nearly]

Basic amount per vehicle plus an amount per £k in value above that in case they have to pay out on a total or near total loss.

 

[Pan mixer]

Ther is some very well paid people at insurance companies calculating this sort of thing very carefully, value, depreciation, likelehood of a claim and many more things will be taken into account.

 

[David.]

Ther is some very well paid people at insurance companies calculating this sort of thing very carefully, value, depreciation, likelehood of a claim and many more things will be taken into account.

They are the people who found accountancy to be far too exciting for them.

 

[Nigel Wellings]

For agric vehicles (anything self propelled) it is entirely worked out on value. They charge something like £60-£70 for the first £1000 of value and then anywhere from £10 to £15 per thousand on remaining value. So £15k tractor is £70 plus 15 x £10 =£220 total. Tractor rates have gone up in last 2-3 years.
Above premiums are for farming usage, if more than 50% contracting generally double the price.