How to insure a tractor
Part of owning and operating a tractor is ensuring appropriate insurance is in place. It isn’t quite the same as insuring other vehicles; different considerations may apply.
Is insurance necessary?
If a tractor is driven and operated on private land, insurance is not legally required. However, it is still recommended.
If a tractor is driven on public roads, even only occasionally or across very short distances, having at least third-party insurance in place is mandatory.
How a tractor is bought or acquired can also be an important element. If it is funded through borrowing or a finance agreement, the owner may be contractually obliged to have insurance in place. Failure to comply could be considered a breach of contract.
Insurance for a tractor that isn’t used on the public highway
A tractor is an expensive and important agricultural asset. It’s important to think carefully about what would happen if it were stolen or damaged. Could it be replaced quickly? If it breaks down, will the repairs be affordable? Would a harvest be lost without it?
Tractors are also large pieces of machinery. If they’re involved in a collision, the damage and injury could be substantial or potentially devastating. The danger is multiplied if customers, third-party workers (e.g. maintenance or haulage teams) or members of the public are present on the land.
Deciding on insurance needs
These will vary depending on the circumstances of the vehicle owner. Factors that should be considered include:
- predicted annual mileage
- who drives or operates the tractor
- whether more than one tractor is owned and operated
- whether it is driven on the roads
Other factors that may affect the type of insurance needed:
- the use of trailers or other equipment that may need to be attached to the tractor
- the age of the vehicle
- the make and model of the tractor
Types of insurance
As with regular vehicle insurance, there are different types of insurance for tractors. Which is most appropriate will vary according to the owner’s requirements.
As a starting point, the three main levels of tractor insurance are:
- third party only: provides cover if the policyholder injures someone else or damages their property
- third party, fire, and theft: an addition to third-party insurance, which provides cover for damage to the tractor by fire, or if the vehicle is stolen
comprehensive: covers the policyholder for all the above, and if the tractor is damaged or lost due to an accident or vandalism.
What does tractor insurance cover?
This will also vary according to the insurer, the terms of the policy, and the insured’s requirements.
For example, insurance is available to specifically cover trailers, spare parts, accessories, and the policyholder’s belongings.
Fleet insurance or farm vehicle insurance can cover one or many tractors, or other agricultural vehicles. This can be a cost-effective and easy-to-manage way of insuring multiple vehicles. Of course, it is also possible to take out single-tractor insurance.
It is also worth considering whether commercial insurance would be a better choice over smallholder’s insurance.
Commercial insurance often comes with unlimited mileage – perfect for large farms or agribusiness operations with lots of plant and machinery. Conversely, smallholders’ insurance may limit mileage.
Specific insurance is also available for vintage tractors, i.e. over 25 years in age, which will be suitable if an old tractor is taken to rallies or agricultural shows.
What is the difference between tractor insurance and agricultural vehicle insurance?
Agricultural vehicle insurance provides a wider range of cover within a single policy. It’s a sensible and prudent option for potential policyholders with other heavy plant or a vehicle mix.
Reassurance for owners of all kinds of tractors
It’s important to know that, in the unfortunate event of an insurance claim, a policy will provide the support and protections the policyholder expects and needs.
When tractor insurance is provided by MS Amlin, insurance brokers and their clients can both be confident in the knowledge that their policy has been underwritten by experts.
With more than 20 years’ industry experience it’s no wonder that MS Amlin’s tractor insurance products are among the most widely sold and respected in the UK market.
For more information, visit our agricultural motor insurance hub. If you are an insurance broker, you can also contact our Business Development Managers directly: andrew.sajo@msamlin.com or anthony.meechan@msamlin.com.
