Tractor Insurance: Coverage, Cost, and How to Buy

The cost of a tractor can range from $10,000 or less to $100,000 or higher.^[1] And without the appropriate insurance coverage, you could have to pay for out-of-pocket repairs after an accident or other incident.

With both stand-alone and comprehensive farm policies available, tractor insurance for personal or business use can pay to repair or replace your tractor after covered damage or theft and prevent budget-breaking losses.

Here’s what you should know about tractor insurance, including how it works, the types of coverage available, and average costs.

How tractor insurance works

Tractor insurance is a type of coverage that pays to repair or replace your tractor due to accidents, theft, weather damage, or other hazards. It’s often part of a farm and ranch or farm equipment insurance policy.^[2] Insurers may also sell stand-alone tractor policies, usually for compact and privately owned tractors.

Tractor insurance differs from auto insurance or general farm liability insurance. Rather than protecting others on the road or primarily covering injuries or property damage to others, it covers damage to your tractor. Though, depending on the policy you have, your tractor insurance may also include a liability component.^[3]

Tractor insurance may cover various types of tractors and their attachments. Specific coverage may vary depending on your deductibles, coverage limits, and policy’s structure, like whether it has named-peril or all-risk coverage.

Why farmers need tractor insurance

States don’t require tractor insurance in the same way they require auto insurance. Since you’re not driving your tractor on the road, you pose less risk to others. But it’s still in your best interests to insure your tractor.

Here are a few examples of when tractor insurance would be beneficial:

• Roadway collision when you’re moving your tractor from one field to another

• Hailstorm or tornado that damages your tractor

• Tractor rollover that leaves significant damage

• Theft or vandalism

If any of these perils occur and you don’t have insurance, you’d have to pay out of pocket to either repair your tractor or buy a new one entirely.

If you use your tractor for your farm business, you’d also have to account for the downtime until you can get it back up and running. Finally, if you cause an accident that leaves someone else injured or damages their property, you could be on the hook for the associated costs.

What does tractor insurance cover?

What exactly tractor insurance covers depends slightly on the insurer and type of policy you have: personal tractor, farm and ranch, or farm equipment insurance. Tractor insurance typically includes a handful of key coverages.

Learn more about what tractor insurance covers below:

Peril	Covered?
Collision	Yes
Weather damage	Yes
Overturn	Yes
Theft and vandalism	Yes
Medical payments	Sometimes
Liability	Sometimes
Mechanical breakdown	No
Wear and tear	No
Operator neglect	No

Accidental damage and overturns

Tractor insurance generally covers damage to your tractor from accidents and overturns. For example, if your tractor rolls down the hillside or collides with another piece of equipment, your tractor insurance would pay to repair or replace it.

This coverage may be especially handy if your property has many hills and uneven terrain that could pose challenges for your tractor.^[4]

Theft and vandalism

Similar to car insurance, tractor insurance can cover non-collision incidents, including theft or vandalism. If you store your tractor somewhere else, this coverage can provide peace of mind when you can’t keep an eye on it. Just make sure you have proof of ownership of the tractor before you file a claim, as your insurer may require it.

Weather-related losses

You may store your tractors outside, which can increase their risk of weather-related damage from hail, heavy winds, fire, and other hazards.

If you leave your tractor in the field overnight and it sustains weather-related damage, your insurance should pay for it. But tractor insurance generally won’t cover damage from flooding. You may need a different policy or special endorsement for flood insurance.

Other tractor insurance coverages

Some tractor insurance policies also include liability insurance and medical payments coverage. Liability coverage pays for injuries and damage to other parties. If you drive your tractor on the road, you may need liability insurance by law, but it’s optional for personal yard use. 

Medical payments coverage pays for injuries to both you and other parties, regardless of who caused the incident.

These coverages may be a part of stand-alone tractor insurance for privately owned vehicles. But if you’re buying farm and ranch or farm equipment coverage for your business, you may need to purchase them separately.

Personal vs. business tractor insurance

Tractor coverage is generally available in two different types of policies: personal tractor insurance and farm and ranch or farm equipment coverage.

Personal tractor insurance pays for tractors (usually compact ones) you privately own and use in your yard for mowing, plowing, hauling, and more. It covers physical damage to your tractor, as well as liability and medical payments. But it doesn’t typically cover tractors used for business purposes, such as if you own a farm.

In that case, you can get your tractor coverage either through farm and ranch or farm equipment insurance. Farm equipment or agricultural machinery insurance covers all types of equipment, including tractors, combines, irrigation equipment, and more.

Meanwhile, comprehensive farm and ranch policies offer even more comprehensive protection, covering things like your farm home and other structures, personal property, and livestock. It may provide either blanket or scheduled coverage. Blanket coverage has a single limit for all your farm property, while scheduled coverage offers a set amount for each item.

With comprehensive farm and ranch policies, you may need to purchase liability insurance and medical payments coverage separately.

How much does tractor insurance cost?

The cost of tractor insurance can vary widely depending on your coverage needs and the type of policy you have. You’ll typically pay more for a comprehensive farm and ranch policy that covers tractors than you would for a personal tractor policy.

Tractor insurance starts at $75 per year, according to Progressive. This comes out to a little more than $6 per month, but it only includes liability insurance.^[3] Erie Insurance cites average tractor insurance rates of $5 per month for every $1,000 of value.^[5]

The table below provides estimated costs for tractor insurance, using Erie’s rate estimate.

	$15,000	$25,000	$50,000	$75,000
Average monthly cost	$75	$125	$250	$375
Average annual cost	$900	$1,500	$3,000	$4,500

Factors affecting tractor insurance costs

The cost of tractor insurance ranges widely. The amount you’ll pay depends on a few key factors:

• Policy type: Your costs will differ depending on whether you have a stand-alone tractor policy or have coverage as part of a comprehensive farm policy.

• Tractor value: Generally, the more expensive your tractor is to replace, the more you’ll pay for coverage.

• Tractor age: Older tractors may be cheaper to insure because they’re worth less, but newer tractors may qualify for more discounts.

• Tractor horsepower: The faster your tractor can go, the more you could pay because of the increased risk of an accident.

• Usage hours: Running your tractor year-round may be more expensive than solely using it for seasonal purposes.

• Storage security: Storing your tractor in a secure place can reduce the risk of vandalism and theft, thereby lowering your premiums.

• Policy features: Your policy’s coverage types and limits, deductibles, loss history, and eligible discounts will affect your premiums.

How to buy tractor insurance

Follow these steps to buy a tractor insurance policy:

• 

  1. Take stock of your equipment

  Before buying a policy, consider what equipment you need to insure, including the serial number of each piece, its value, and any attachments you want coverage for.

• 

  2. Compare policy types

  Decide whether you need a stand-alone personal tractor policy, a farm equipment policy, or a farm and ranch policy. Keep in mind that a personal tractor policy likely won’t cover a tractor you use in your business.

• 

  3. Consider your coverage needs

  Ask your insurer about any optional coverages you may need, including liability, medical payments, flood insurance, and more.

• 

  4. Select deductibles and limits

  Choose policy limits that match your tractor’s replacement cost and deductibles that you can easily afford if you need to file a claim.

• 

  5. Complete your application

  Keep all relevant paperwork on file once you complete your application. You should also document your tractor’s current condition and value with photos and receipts.

Your tractor insurance needs may change over time. Re-evaluate your policy each year — especially if you use your tractor for business purposes — and anytime you upgrade your equipment.

Tips to reduce your premium

No matter how much insurers quote you for tractor insurance, it may be possible to lower your premiums with discounts, bundled policies, and policy changes. Here are a few strategies to try:

• Store your tractor securely. You could save on your premiums by storing your tractor in a safe place where it’s less vulnerable to theft. Consider a storage location that has a lock and security cameras, and arm your tractor with a GPS anti-theft device.

• Bundle your policies. You could save by bundling your tractor insurance policy with others. For example, bundle your farm equipment policy with other farm policies, or bundle your personal tractor policy with your home or auto policy.

• Avoid unnecessary claims. Filing a claim or having a less-than-stellar driving history can increase your tractor insurance costs. Drive safely, and avoid filing claims if possible.

• Raise your deductible. You can usually lower your premium by raising your deductible, which is your out-of-pocket cost when you file a claim. Just make sure to keep your deductible affordable in case you need to file a claim.

• Join a farm bureau. If you join your local farm bureau, you could access discounts that help you save on key services, including tractor or farm insurance.

Tractor insurance FAQs