Do I Need Tractor Insurance?

Your tractor is a big investment. It also comes with big risks. Tractors are powerful, expensive pieces of equipment that can be damaged or cause extensive injury during an accident. Tractor insurance can help you weather these risks. But do you actually need tractor insurance? Here’s a quick guide to what tractor insurance covers, who is required to have it, and where to find it.

Is Tractor Insurance Mandatory?

Unlike car insurance, tractor insurance (like insurance on other farming equipment) isn’t required by state laws. However, if you’ve taken out a loan to purchase your tractor, most loan companies will require you to insure your tractor until you pay off the loan.

Does My Home Insurance Cover My Tractor?

Tractors under 25hp may be covered by your home insurance policy, but it’s important to check with your agent to make sure. Tractors higher than 25hp or 30hp generally aren’t covered by a home insurance policy, or by your home insurance personal liability rider. This means you could be on the hook for costly repairs or outright replacement if your tractor is damaged during an accident or as a result of a disaster, or has been vandalized or stolen. This coverage gap also means that if you run into a neighbor’s fence or cause damage or injury to another person while operating the tractor, you'll need to pay any costs incurred out of pocket.

Who Should Get Tractor Insurance?

Your tractor is a powerful piece of machinery. This power is key to its performance, but means it can also cause serious damage. Tractor rollovers account for 44% of work-related deaths on farms. They can also be expensive to repair. Tractor insurance can protect you from the huge out of pocket expenses that come with costly repairs or liability lawsuits. If you’re not confident you can pay for repairs or damages out of pocket and your tractor is over 25hp, tractor insurance may be right for you.

What Does Tractor Insurance Cover?

Tractor insurance can protect against damage and liability caused by several types of events. It can also be purchased as a blanket policy that covers your entire piece of equipment (up to a specific amount), or insure individual equipment parts that each have their own value.

Both types policies typically include coverage for the following, but be sure to check your specific policy:

Accidents. If your tractor is damaged during a rollover or collision with another vehicle or outbuilding, costs to repair your tractor are usually covered.
Theft and vandalism. If your tractor is stolen or vandalized, your policy generally covers the cost of replacement or repair up to a specific amount.
Repairs. In some situations, depending on your policy, repairs that must be made as a result of specific conditions or incidents may be covered.
Personal liability. If you damage a neighbor’s fence or driveway, your policy will generally cover your personal liability for that damage, up to a certain amount.
Add-ons for specialized coverage. Many insurance companies offer add-ons for specialized coverage. This could include coverage for acts of terrorism.

How Much Does Tractor Insurance Cost?

The cost of tractor insurance will vary based on the value of your tractor. In general, you can expect to pay $5-7 a year for every $1,000 of value your tractor has. So if your tractor cost $30,000, your yearly insurance cost could be $150-$210 per year. Of course, this will vary depending on your local area, how much coverage you’re looking for, and which type of policy or add-ons you choose. Most policies also come with deductibles, meaning you will need to pay for the first $500 or $1,000 of damage before the policy kicks in. In general, the higher deductible you choose, the lower your yearly premium will be.

How Do I Get Tractor Insurance?

Check in with your local Farm Bureau office for recommended agents in your area. Other national insurance providers that offer tractor insurance include American Family Insurance and Nationwide. The company that holds your home insurance policy may also have recommendations on local providers.

Connect With Yanmar

Yanmar compact tractors and attachments are built to handle the most rugged conditions and work just as hard as you do. Whether you’re new to the world of tractors or have owned a Yanmar for years, our dedicated Customer Experience Team is here to help with everything from maintenance tips to finding the best exclusive offers. Please don’t hesitate to connect with us online or give us a call at 678-551-7369.

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