How much does tractor insurance cost?
From smallholdings to large farming enterprises, tractors are essential enablers of the agricultural industry. Understanding tractor insurance is therefore essential, as losing access to a tractor can be detrimental to agricultural businesses.
Is tractor insurance necessary?
If a tractor is taken on the road, even across short distances, it is a legal requirement to at least have third-party insurance.
For a tractor that is only ever used on private land, insurance is not legally required. However, it does mean the vehicle must never be taken on the road, even for very short trips between fields.
The cost of repairs or replacing a tractor can be financially challenging, so it’s still important to have insurance that protects the driver and tractor in the event of theft, fire, or damage.
Insurance not only protects rural businesses, it also provides peace of mind.
What type of tractor insurance is required?
Before costs can be worked out, tractor owners need to consider what type of insurance they need. As a smallholder, they may only have one tractor. Alternatively, they could have a fleet, a vintage or classic tractor, or even just a small lawn tractor.
There may also be other machinery or plant to think about, in which case getting a single insurance policy to cover everything may be beneficial. It can make admin less time consuming as there will be just one renewal date, rather than several.
What does tractor insurance cover?
This will depend on the type of insurance policy taken out. The three main types are:
- third-party cover
- third party, fire, and theft
- comprehensive
Third-party insurance only covers damage and injury to a third party or their property. It does not cover any damage to the policyholder or their tractor.
Third party, fire and theft insurance includes cover for theft or fire damage to the tractor.
Comprehensive insurance also covers the cost of damage to the tractor or injury to the driver.
Comprehensive insurance will normally cover:
- the tractor
- detached and attached trailers
- damage to personal possessions
- spare parts
If a vintage tractor or classic tractor is being insured, then insurance should cover use for shows, road runs, and rallies.
For smallholdings, insurance will often only cover low-level agricultural use. The policyholder may be asked to name the tractor’s user. There will also normally be a limit on annual mileage.
With commercial insurance, unlimited mileage and ‘any driver’ cover can be expected.
What other factors are considered when working out cost?
This will depend on both the insured and the insurance company. Factors include:
- Previous claims history
- Where the tractor is kept when not in use. Good security may mean a lower cost.
- The agreed excess amount. A higher excess normally means a lower insurance cost.
The insurance company. Some insurers offer higher premiums than others, especially if they are not a sector specialist.
How much can tractor insurance premiums cost?
This will depend on all the above factors. We would always recommend getting an accurate quote from an insurance company that has specialist experience and knowledge of tractors and agricultural equipment.
MS Amlin provides a full range of tractor insurance solutions at competitive prices. With over two decades of experience in insuring agriculture vehicles, both brokers and their clients will enjoy peace of mind knowing that their policies are underwritten by experts.
With a dedicated agricultural claims team, 24/7 support and flexible solutions designed to make life easier for policyholders, it’s no wonder we continue to be regarded as a leader in the agricultural vehicle insurance sector. For more information, visit our agricultural motor insurance hub. If you are an insurance broker, you can also contact us directly..
