Do you need insurance on a tractor?

Whatever the size of a farm or estate, whether someone has a smallholding or a large agribusiness operation, it’s likely they will own and operate at least one tractor. With that being the case, appropriate motor insurance will also be needed to cover vehicle use.

Is tractor insurance legally required?

If the tractor is only used on private land, insurance isn’t required. However, if the tractor is driven on public roads, the driver should at least have third-party insurance, even if the vehicle is only taken on the roads occasionally or across short distances.

Comprehensive cover isn’t needed in these circumstances. If the tractor is never on the road, MOT and vehicle tax is also unnecessary.

If a tractor isn’t used on the roads, why would insurance be needed?

Cost of replacement and repair

A tractor will be expensive to replace if it is damaged or stolen.

While not exactly fast or likely to be driven recklessly, a tractor can still be the victim of catastrophic mechanical failure, fire, or collision – especially with other agricultural vehicles and structures.

Unfortunately, agricultural equipment theft also remains a possibility. If a tractor is stolen at a critical time, e.g. during a harvest, and the owner cannot afford to replace it, the impact could be devastating for their business.

Gaining access to land

It’s worth considering whether a tractor deployed for regular farm use will only be used exclusively off-road or on private land.

For example, to get to a neighbouring field, a farm worker may need to cross a public highway used by motorists, cyclists, and other traffic. That means there is a risk, even if it may seem remote, of the tractor colliding with another vehicle or a pedestrian.

Types of tractor insurance policies

Tractor insurance cover may vary depending on the provider. However, as with most vehicle insurance policies, there are three broad policy categories:

• third-party cover
• third-party, fire, and theft cover
• comprehensive cover

Third party is the most basic; it only covers damage caused to someone else – whether that’s an injury or damage to their property. It does not cover any damage or injuries suffered in a situation where the policyholder was at fault.

Third-party, fire, and theft cover contains an additional element to protect the policyholder – in the event of fire, damage, or theft. Comprehensive insurance also covers any loss, damage, or injury the policyholder may have sustained.

Refining insurance cover

Tractor insurance can be customised to suit the circumstances of the policyholder. For example:

• owning a fleet of tractors instead of just one
• insurance for a trailer and associated equipment
• operating within a mileage restriction
• a tractor driven by multiple farm workers

Fleet insurance can be more cost-effective and the easiest way to manage insurance for multiple vehicles. It should also be possible to include other plant or equipment within the policy, such as quad bikes or diggers.

Smallholding tractor insurance normally comes with a lower mileage allowance, whereas commercial insurance often allows unlimited mileage.

If a tractor is to be used commercially, the owner should consider whether they are likely to encounter clients or members of the public, e.g. due to the presence of a farm shop, PYO facility or public footpath. If so, being insured will be a sensible precaution.

Similarly, if any employees will be sharing use of a tractor, insurance will need to be in place in case of accidents.

Vintage tractors

These fall into a separate category and may have unique requirements. For example, while the vehicle may not be used actively, it could be taken to agricultural shows or displays on a trailer or driven on the road. Specific insurance is available for these types of scenarios.

Getting expert agricultural motor insurance advice

On most farms and smallholdings, the tractor is a critical piece of equipment without which it would be difficult to operate. Knowing that it is insured brings peace of mind for the owner: if something goes wrong, they’re covered and can get back to work ASAP.

For decades, MS Amlin has been providing insurance for agricultural motor vehicles across the UK, covering a broad remit of risks.

Our clients know they can trust us, and we never fail to meet the expectations of their customers. With comprehensive cover, instant quotes, and the flexibility to adjust policies mid-term, policyholders get the best possible coverage, and a service that suits their needs.

Visit our agricultural motor insurance hub for more details. If you are an insurance broker, you can also contact our Business Development Managers directly: andrew.sajo@msamlin.com or anthony.meechan@msamlin.com.