Farm Tractor Insurance: Cost & Quotes

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Updated: March 27, 2025 . 8 min read

Written by Ofir Sahar

CEO & Founder

Ofir Sahar

CEO & Founder

Some of the products on this page come from partners who may compensate us when you click on their links or take specific actions. This helps us keep our content free. That said, our opinions are our own and based on independent analysis.

 

Having a solid farm equipment insurance policy is vital. It ensures that you don’t end up in an unfavorable financial situation where your business is on the line. 

This article explores what you need to know about farm machinery insurance for tractors, trucks, harvesters and other types of farm equipment, how much it costs, and more.

 What is Covered by Farm Tractor Insurance?

Like with heavy equipment insurance and heavy machinery insurance, exactly what is covered by your policy depends on the kind of business insurance you choose to include. Commonly, a typical farm tractor insurance offers general liability insurance, auto liability insurance, and more. 

 

Auto Liability Insurance for Farm Tractors 

This isn’t the kind of general liability coverage that a business needs but rather a commercial vehicle insurance coverage. The function of farm tractor auto liability insurance is to:

  • Cover the medical expenses of injured third parties or reimburse the value of the damaged property if your farm tractor causes an accident while running on a public highway
  • Cover attorney fees, compensatory payments, administrative costs, and other legal expenses if someone decides to take legal action against the accident your farm tractor caused

 

Auto liability insurance for farm tractors is offered together with collision insurance and comprehensive insurance. 

Collision insurance will cover your tractor’s parts repair or replacement if it becomes damaged after colliding with an object or vehicle while running on the highway. 

On the other hand, comprehensive physical damage coverage will cover parts repair or replacement if your farm tractor incurs damage due to theft, vandalism, fire, and other covered perils.

 

Equipment Breakdown Insurance for Farm Tractors 

Frequent use will eventually result in the occasional breakdown of your farm tractor. This is why tailored agricultural tractor insurance offers equipment breakdown insurance. 

Equipment breakdown insurance covers parts repair or replacement if your farm tractor incurs damage while being used on the farm. This covers battery replacement, wiring repair, GPS repair, and many more.

 

Farm Tractor General Liability Insurance

Note that farm tractor auto liability insurance will only provide coverage if your farm tractor injured people by causing an accident while running on the highway. 

So what does general liability insurance cover? General liability insurance covers the following on your behalf:

  • Third-party personal injuries – When you injured someone while using a tractor on the farm or any other place except highways, general liability insurance will cover medical bills if the person files a claim
  • Third-party property damage – Farm tractors are solid machines that can easily destroy or damage someone’s property. General liability insurance for farm tractors reimburses the owner of a damaged property on your behalf
  • Legal defense – Personal injury claims and property damage claims are wrapped in court and general liability insurance will pay for attorney fees, compensatory payments, administrative costs, and other legal expenses on your behalf

 

 

Farm Tractor Workers Compensation Insurance 

This insurance protects your business against the hefty expenses of work-related accidents and illnesses. By having workers comp insurance, you can cover the following:

  • Medical treatment/procedure –workers’ compensation insurance will shoulder costs if the operator’s injuries require a medical treatment/procedure
  • Hospitalization – Injuries such as fractures, concussions, and contusions will end with your farm tractor operator staying in the hospital for days, weeks, or months. Workers compensation insurance will help with this by paying for the hospital bills on your behalf
  • Medication – Workers’ compensation insurance will cover the cost of antibiotics, anti-inflammatory tablets, and other medicines your farm tractor operator needs to prevent an injury from worsening
  • Lost income compensation –Lost income compensation is implemented as a weekly allowance equal to two-thirds of the average weekly wage
  • Death benefits – It will take care of funeral expenses and will provide cash aid to dependents.

Farm Truck Insurance

Farm truck insurance is offered as commercial auto insurance. Commercial auto insurance offers the following protection for your farm truck:

  • Auto liability coverage – Covers medical expenses for injured third parties and reimbursement for damaged property if your farm truck causes an accident
  • Physical damage coverage – Pays for the parts repair or replacement of your farm truck if it incurred damage due to an act of God, malicious mischief, or collision
  • MedPay/personal injury protection – MedPay and personal injury protection both cover the medical expenses of the driver and passengers who got injured after your farm truck caused an accident or got involved in an accident. 

 

Commercial Insurance for Farm Tractor Rental Business

Commercial property insurance functions to cover the commercial space you’re using to store the rental farm tractors. Its function is to:

  • Reimburse losses if the commercial space you’re using is destroyed by fire or extreme weather
  • Reimburse losses if the structures of the commercial space of your farm tractor and  equipment rental business incur damage due to fire, theft, vandalism, extreme weather, and other covered perils

Note that commercial property insurance for farm tractor rental business includes stocks and contents coverage.

 Stocks and contents coverage allows you to recover losses if the installations inside and around your business’s commercial space as well as the documents and other valuable items inside become lost or damaged due to fire, theft, vandalism, and other covered perils. 

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Farm Tractor Insurance Cost

The average farm tractor insurance cost is about $750 per month or $8,500 per year for a $1 million general liability insurance.

However, there are several factors that go into determining how much your farm tractor insurance will cost. 

1.the tractor model that you’re trying to insure and the number of tractors you have on your farm will have the biggest impact on your insurance premiums.

  1. Your rates will also be dependent on your farm’s safety record. If you have a history of accidents on your farm, then you will have a much higher rate because of the significant risk that the carrier is taking when they offer you agricultural equipment insurance.

You’ll also have to work out how high your deductible is, as a higher deductible will cut down on the cost of your insurance premium because it lessens the chances of you using the policy for more minor repairs. 

 

Best Farm Tractor Insurance Companies

 

CoverWallet

 CoverWallet offers tailored insurance for farm tractors, trucks, and other equipment.

 You can get quotes showing pricing and offers by only providing basic customer information. Also, CoverWallet allows you to immediately buy any insurance quotes received. 

Average cost: $325

Our rating: 10/10

 

Pros

  • Cancel a policy anytime
  • Get insured online
  • Stable rates
  • Responsive customer support

Cons

  • Not an insurance company but an insurance broker

 

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Geico Farm Tractor Insurance

While Geico doesn’t outright refuse to insure farm tractors unlike Progressive, they tend to handle tractors on a case by case basis.

 This company primarily offers commercial auto insurance for farm tractors and trucks with a plethora of discounts – new vehicle, safe driver, and more. 

Average cost: $365

Our rating: 8/10 

Pros

  • Has a lot of discounts in its commercial auto insurance for farm tractors and trucks

Cons

  • Some business insurance products are underwritten by other carriers

 

 

Trusted Choice

 Trusted Choice is a platform of independent insurance agents who work with you to find the best farm tractor insurance rates. 

Working with a company like Trusted Choice is often a good idea if you’re looking for niche insurance like agricultural equipment coverage.

Average cost: $380

Our rating: 5/10

Pros

  • Has knowledgeable insurance agents that help you find get the best coverage for your farm tractor

Cons

  • Customers report that some insurance agents are rude

Progressive Farm Tractor Insurance

 

There are a few different kinds of vehicles that Progressive does not insure because of their lack of specialization in that particular area. 

 Unfortunately, farming tractors are included in the list of vehicles that Progressive does not offer commercial auto insurance for, so you will be unable to get a package deal on your tractor if you already work with Progressive.

Average cost: $350

Our rating: 9/10

Pros

  • Offers equipment breakdown coverage for farm tractors

Cons

  • Doesn’t offer auto liability insurance and other commercial auto insurance coverages for farm tractors

 

Farm Bureau Financial Services

 Farm Bureau Financial Services offers policies that are specifically tailored for the farmers buying them. They will go over how you use your farm tractor with you and draw up a policy that excludes everything you don’t need. This makes them an excellent choice for farmers looking to save money.

 

Average cost: $390

Our rating: 6/10

Pros

  • Offer custom and tailored insurance for farm tractors

Cons

  • Not accredited by BBB

 

 

About the author

Ofir Sahar

Ofir is the founder and CEO of Insuranks. He established Insuranks in 2019 from scratch and has been running educational insurance websites since 2009 on a mission to help businesses...See full bio.

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