A new online insurance service that reduces premiums significantly on days when machinery is not used could save owners of large combine harvesters nearly £10,000 over a five-year replacement cycle, says Douglas Brown of Arable Insurance Brokers (AIB).

Developed bv AIB for UK growers, Combineinsure.com could cut standard policy costs in half whilst providing comprehensive cover, he says.

“High value specialist machines like combines have widely varying levels of risk during the year depending on what they are doing.

“Clearly a combine harvester at work and travelling on roads during the summer is at greater threat of damage or loss than when it is out of the way locked up in a machinery shed in the winter.”

By removing a combine harvester from a typical farm fleet policy during the 9 months it is not used and placing it on a comprehensive laid up policy, producers can access much lower annual premiums, he explains.

“For a typical large combine with a new value of £400,000, the annual comprehensive premium on a farm fleet could be approaching £4,000.

“A Combineinsure policy using conventional cover whilst equipment is in the field and a reduced premium for when machinery is laid up over winter would be nearer £2,000.

“That’s still the same level of cover for the full 365 days – we’re not reducing it down to just fire and theft or anything like that. The only difference is the rate of premium applied when the machine is in the shed.”

Research carried out by AIB shows the simple web-based nature of the product has appeal for many growers with 45% saying they would definitely use it and only 23% saying they would be put off by it being accessed through the internet, Douglas Brown points out.

“Encouragingly, 79% of growers said they were interested in the concept of out of season cover with 74% believing insurance premiums should be reduced when their machinery was not in use so we know the market is ready for this product.”

Growers can get quotes online from www.combineinsure.com in around 10 minutes, he says.

“A producer will gain most if he insures in the autumn through to the expiry of all policies on the 1st July. 

“We decided on this date so that all of our policyholders would know that it’s time to reinsure their combine again just prior to harvest.”

An early adopter of combineinsure.com is farmer contractor Robert Barnes of L. E. Barnes at Roxhill Manor Farm in Bedfordshire.

His existing £3850 annual premium for fully comprehensive insurance on each of his Claas Lexion 780s valued at £350,000 was reduced to £1805 using Combineinsure – a saving of £2045/year.

“This represents significant savings,” Robert explains. “The idea that we should be paying less for the days machinery is not being used makes perfect sense to me.”

Robert says his saving over the five years he intends to keep his combines based on 90 days of use per year would be over £15,000 – the difference in premiums reduces slightly each year as the machine depreciates.

“Things are very tight right now and with costs of production the way they are I don’t see how anybody can afford to disregard savings like these - especially as it only takes a matter of minutes to do.”