Farm Truck Insurance: What Farmers Need to Know
The right farm truck insurance can protect you from financial risks and prevent interruptions to your daily farm operations.
Excellent
)
)
Written byJessica Martel
)
Jessica is a freelance writer, professional researcher, and mother of two rambunctious little boys. She specializes in personal finance, women and money, and financial literacy. Jessica is fascinated by the psychology of money and what drives people to make important financial decisions. She holds a Masters of Science degree in Cognitive Research Psychology.
Jessica has been a contributor at Insurify since July 2023.
)
Edited bySarah Archambault
)
Experienced personal finance writer
Background working with banks and insurance companies
Sarah enjoys helping people find smarter ways to spend their money. She covers auto financing, banking, credit cards, credit health, insurance, and personal loans.
Featured in
){kind=small}
){kind=small}
Updated
Why you can trust Insurify: Comparing accurate insurance quotes should never put you at risk of spam. We earn an agent commission only if you buy a policy based on our quotes. Our editorial team follows a rigorous set of editorial standards and operates independently from our insurance partners. Learn more.
Advertiser Disclosure
At Insurify, our goal is to help customers compare insurance products and find the best policy for them. We strive to provide open, honest, and unbiased information about the insurance products and services we review. Our hard-working team of data analysts, insurance experts, insurance agents, editors and writers, has put in thousands of hours of research to create the content found on our site.
We do receive compensation when a sale or referral occurs from many of the insurance providers and marketing partners on our site. That may impact which products we display and where they appear on our site. But it does not influence our meticulously researched editorial content, what we write about, or any reviews or recommendations we may make. We do not guarantee favorable reviews or any coverage at all in exchange for compensation.
Table of contents
Farm truck insurance covers trucks used for farm-related tasks and primarily operated on private farm property. When you drive farm vehicles on public roads, even for short distances, you must have insurance coverage that meets your state’s minimum liability requirements.
Depending on the type of truck and its intended use, you might also consider additional coverage options if you own a farm.
Here’s what you need to know about farm truck insurance coverage and exclusions, cost factors, and whether farmers and business owners need this type of coverage.
Quick Facts
Farm truck insurance is often cheaper than commercial truck insurance.
The type of farm truck insurance you need will depend on the type and classification of the farm vehicle.
If you’re using your farm truck to run personal errands, you’ll need to purchase a standard auto insurance policy.
What is farm truck insurance?
Farm truck insurance is a specialized type of auto coverage designed for vehicles that are primarily used on farms. For instance, you might have farm trucks that you use for hauling materials, watering crops, or transporting equipment on the property.
A farm truck policy differs from standard truck insurance because the truck is used only for farm-related tasks and primarily stays on the farm property. While you might need to take the truck off the property for short distances, it shouldn’t be used for personal purposes.
This is in contrast to having a personal truck you might occasionally use on the farm. In this case, you’d need a standard truck insurance policy because the truck isn’t primarily used for work tasks.
To qualify for farm truck insurance, you might also have to have more than one vehicle. If you own only one truck, the insurer may assume that you use it for work and personal reasons.
What farm truck insurance covers
Liability: Even if you travel only occasionally on public roads, it’s mandatory to meet the minimum liability coverage requirements in your state. This includes a combination of bodily injury and property damage coverage.
Comprehensive: Comprehensive insurance helps pay to repair or replace your vehicles after a non-collision event, such as theft, vandalism, or damage from a hailstorm.
Collision: Collision insurance helps pay for your farm truck if it’s damaged in an accident, even if you’re at fault.
Uninsured/underinsured motorist: Uninsured/underinsured motorist insurance covers damages and your medical bills if a driver hits you and they don’t have car insurance or if they lack adequate coverage to pay for the accident.
What farm truck insurance doesn’t cover
Depending on the type of farm vehicles you have and how you use them, farm truck insurance might not cover all your needs. Farm truck insurance generally doesn’t cover the following:
Personal use: If you’re using your farm truck to run personal errands, you’ll need to purchase a standard auto insurance policy.
Commercial trucking: If your farm has heavy-duty vehicles, such as grain haulers or semitrucks, or uses the farm trucks for business purposes, such as hauling products for other farmers, you’ll likely need commercial trucking insurance.
Normal wear and tear: Like a standard auto insurance policy, farm truck insurance doesn’t cover regular wear and tear.
Good to Know
Farm truck insurance requirements can vary between states. Different states may have different agricultural exemptions based on factors like truck usage, distance driven, and weight. When comparing farm truck insurance policies, check with the farm insurance agents for policy exclusions.
Farm truck insurance cost factors
Generally speaking, farm trucks are exposed to fewer risks since they aren’t out on public roads. So farm truck insurance is often cheaper than standard truck insurance.
On average, farmers pay $200–$400 per year for $1 million in farm truck liability coverage. Optional comprehensive coverage averages around $100 per year, while collision insurance costs about $200–$400 annually.
Farm insurance rates vary widely based on several factors:[1]
Vehicle type: Your premium will vary based on the type of vehicle insured. For instance, a grain hauler might require a different policy than a farm pickup truck.
Vehicle usage: Trucks that are only used on private property — exclusively for farm use — are generally cheaper to insure than trucks that leave the farm.
Number of vehicles: Insuring multiple farm trucks often helps farmers qualify for a multi-vehicle discount that lowers premiums.
Driving record: Maintaining a clean driving record helps lower farm truck insurance costs. So it’s important for farm owners and workers to drive safely.
Coverage type and amount: The type of farm vehicle insurance purchased and the amount of coverage required affects your premiums.
Deductible: Your deductible is the amount of money you pay out of pocket before your insurance kicks in. Paying a higher deductible helps lower your premiums.
Where to buy farm truck insurance
Some traditional insurers offer coverage for farm vehicles. But farmers may benefit from working with an insurance company or agent that specializes in coverage for the agricultural industry. These insurers and agents often have a better understanding of the type of coverage needed, whether you operate a small family farm or a large operation.
Consider the following tips when shopping for farm truck insurance:
Assess usage
Take inventory of the trucks on your farm and consider how they’re used, including who drives the vehicles and how often they’re driven on public roads.
Gather farm vehicle information
Collect important vehicle information, including the make, model, year, value, and vehicle identification numbers (VINs) for all vehicles that need to be insured.
Compare multiple quotes
Compare quotes from at least three different insurance companies to get a variety of farm truck insurance quotes. Consider each insurer’s financial strength, customer service, and any discounts they offer when looking at policies. You can also work with an agent who can help you find the right coverage.[2]
Some examples of farm insurance companies include Farm & Country Insurance, Copeland Insurance Agency, Erie Mutual, and Nationwide.
Do you need farm truck insurance?
Your farm truck generally needs insurance coverage — even if it’s just driven on the farm. The right coverage can protect you from financial risks and prevent interruptions to daily farm operations. And if you drive the truck for any reason on a public road, it must meet your state’s minimum liability requirements.
Let’s say you use your farm truck to move equipment from one field to another that’s five minutes down a public road. Without the proper coverage, you won’t be protected if an accident occurs while the truck is on the road. You may have to pay for vehicle repairs and damages out of pocket, which could cost hundreds or even thousands of dollars.
State insurance laws vary widely for farm vehicles. An insurer or agent that specializes in farm vehicle coverage can help you find the appropriate level of coverage.
Farm truck insurance FAQs
If you’re looking to learn more about a farm auto policy, check out answers to some of our most commonly asked questions below.
Is insurance cheaper on a farm truck?
Usually, yes. Farm truck insurance is generally cheaper than commercial truck insurance because the trucks stay on private farm property and are exposed to fewer risks.
Do farm trucks have to have insurance?
Usually, yes. Your farm truck generally needs insurance. If you drive your truck on a public road, you must carry your state’s minimum liability insurance requirements. You might also need additional insurance depending on the vehicle type, who operates the truck, and the type of load being carried.
What is farm truck insurance?
Farm truck insurance is a specialized type of coverage designed for vehicles that are primarily used on a farm. A farm truck policy differs from standard truck insurance because the truck is only used for farm-related tasks and primarily stays on the farm property.
Can you write off farm truck insurance on your taxes?
Yes. You can write off farm truck insurance on your taxes, provided the truck is used for farm-related activities. But taxes can be complicated, so it’s a good idea to check with a tax professional about acceptable deductions for your farm business.
Sources
- Insurance Information Institute. "What determines the price of an auto insurance policy? Many factors help determine the cost of car insurance."
- Insurance Information Institute. "How to find the right auto insurance."
)
Jessica Martel
Jessica is a freelance writer, professional researcher, and mother of two rambunctious little boys. She specializes in personal finance, women and money, and financial literacy. Jessica is fascinated by the psychology of money and what drives people to make important financial decisions. She holds a Masters of Science degree in Cognitive Research Psychology.
Jessica has been a contributor at Insurify since July 2023.
Edited bySarah Archambault
Experienced personal finance writer
Background working with banks and insurance companies
Sarah enjoys helping people find smarter ways to spend their money. She covers auto financing, banking, credit cards, credit health, insurance, and personal loans.
Featured in
