Farm Vehicle Insurance: What You Need To Know

Farm vehicle insurance is a type of insurance coverage designed to protect farmers and their vehicles used for agricultural purposes. This includes trucks, tractor trailers, pickup trucks, vans, farm truck tractors, and trailers. Depending on the usage and scope of operations, farm vehicles may be insured under different policies, such as commercial auto, personal auto, or farmowners insurance policies. Farm vehicle insurance provides protection from financial losses due to accidents, property damage, bodily injury, and other risks associated with operating these vehicles. It offers peace of mind to farmers by ensuring that they are covered in case of unexpected events, and it helps protect their livelihood and those who depend on them.

Commercial Auto Policy

Farm vehicles, like any other vehicle on the road, require auto insurance coverage if they are used on public roads. This includes vehicles such as pickup trucks, vans, farm truck tractors, and trailers. Farm vehicle insurance is essential to protect yourself, your farm, and those who depend on you financially in the event of an accident.

A Commercial Auto Policy is a type of insurance coverage designed specifically for businesses that own, lease, or rent vehicles. This includes farm vehicles, cars, trucks, vans, pickups, and more. It provides financial protection in the event of accidents, covering repair costs, legal fees, and medical bills. Here's a detailed overview of what a Commercial Auto Policy entails:

Customizable Coverage Options

Commercial auto insurance policies offer a wide range of customizable coverage options to meet the diverse needs of businesses. This flexibility ensures that businesses can select the appropriate level of protection for their vehicles, whether they are owned, leased, or rented.

Liability Coverage

Liability insurance covers bodily injury and property damage claims arising from accidents involving your commercial vehicles. This type of coverage ensures that you can address any financial obligations resulting from accidents where you or your employees are at fault.

Personal Injury and Medical Payments Coverage

This aspect of the policy helps cover reasonable and necessary medical and funeral expenses for individuals involved in an accident with your commercial vehicle. It provides financial assistance to those who may have been injured or require medical attention due to the accident.

Collision Coverage

Collision coverage comes into play when your insured farm vehicle or trailer is damaged in a collision with another object. It helps pay for the repairs or replacement of the vehicle, reducing the financial burden on your business.

Comprehensive Coverage

Comprehensive coverage is designed to protect your insured vehicle from damages not caused by a collision. This includes incidents such as fire, theft, vandalism, severe weather, and natural disasters. Comprehensive coverage ensures that your vehicle is protected from a wide range of unforeseen events.

Uninsured/Underinsured Motorist Coverage

This coverage is crucial when you or your employees are involved in an accident with a driver who doesn't have sufficient insurance. It helps pay for injuries and, in certain cases, property damage caused by uninsured or underinsured motorists.

Additional Considerations

When determining the cost of commercial auto insurance, insurers consider factors such as the number of vehicles used by your business, their value, how often they are driven, and the industry in which they operate. It's important to consult with an insurance agent to create a plan that meets your specific needs and budget.

Personal Auto Policy

Farm vehicle insurance is a special type of protection for vehicles that operate on farms and ranches, such as trucks and tractor trailers. This type of insurance is necessary if the vehicle enters a public roadway. There are several types of farm vehicle insurance coverage, including:

Personal auto policies cover vehicles that are used for farming or ranching, such as pickup trucks, vans, farm truck tractors, and trailers. This type of insurance provides protection from claims made against the policyholder for bodily injury or property damage caused by their personal vehicle. It also covers damage to the vehicle itself due to accidental collision or upset.

Personal auto policies also typically include uninsured or underinsured vehicle coverage, which protects the policyholder and their household members from bodily injury caused by uninsured or underinsured drivers. This coverage extends to both when they are in a covered vehicle and when they are pedestrians.

Additionally, personal auto policies often offer roadside assistance services, providing 24/7 assistance for breakdowns and dispatching repair professionals from a nationwide network. This service usually comes with no forms to fill out and no out-of-pocket expenses.

Personal auto policies can be customized to fit the specific needs and budgets of the farm or ranch, with agents working to ensure that coverage gaps are addressed and adequate protection is provided.

Bodily Injury Liability

Farm vehicle insurance is a type of liability insurance that covers financial risks associated with owning and operating a farm vehicle. While the specific coverage may vary depending on the insurance provider and the location, one common component of farm vehicle insurance is bodily injury liability coverage.

BI coverage is designed to protect individuals from financial risks in the event of an accident or incident involving their farm vehicle. For example, if a farmer is involved in a collision with another vehicle and someone in the other vehicle is injured, the farmer's BI coverage would help cover the medical expenses and other damages incurred by the injured person.

In addition to BI coverage, farm vehicle insurance typically includes Property Damage Liability coverage, or PD coverage. This type of coverage helps pay for damage caused to another person's property during a covered event, such as a collision. It also covers the loss of use of that property.

It is important to note that liability insurance, including BI and PD coverage, typically does not cover repairs to the policyholder's own vehicle or injuries sustained by the policyholder. Separate coverages, such as collision coverage and comprehensive coverage, are usually required for these types of expenses.

The specific details of bodily injury liability coverage can vary depending on the insurance provider and the location, so it is always a good idea to carefully review the terms and conditions of any insurance policy before purchasing it. By understanding the coverage provided, farm vehicle owners can ensure they have adequate protection in the event of an accident or incident.

Property Damage Liability

Farm vehicle insurance is a smart idea to protect yourself, your farm, and those who depend on you. Accidents do happen, and if your farm or ranch vehicle is involved in one, you'll want to be sure your insurance is adequate. Property damage liability coverage is one type of insurance that provides peace of mind.

In most states, drivers are required by law to carry liability insurance on their policies. The minimum amount of liability coverage required varies by state, but it's a good idea to consider purchasing higher coverage limits than your state mandates. If the damages you cause exceed your liability limits, you could be personally liable for the remaining costs. This could result in consequences such as garnished wages or liens against your assets.

Farm vehicle insurance providers, such as Farm Bureau Financial Services, can help you determine the right coverage for your needs. They can tailor a solution to fit your farm or ranch budget and ensure you have the protection you need.

Uninsured and Underinsured Motorists

Farm vehicle insurance is a necessity for vehicles used for agricultural purposes that enter public roadways. This includes vehicles such as pickup trucks, vans, farm truck tractors, and trailers. Uninsured and underinsured motorist coverage is an essential component of farm vehicle insurance, providing financial protection in the event of an accident involving a driver with inadequate or no insurance.

Uninsured and underinsured motorist coverage offers protection against bodily injury and property damage caused by a driver who lacks sufficient liability insurance. In the unfortunate event of an accident, this coverage ensures that you, your passengers, and your household members are safeguarded financially. It covers medical expenses, pain and suffering, lost wages, and, in some cases, damage to your farm vehicle. This coverage is particularly important given the high costs of medical care and vehicle repairs.

Farm vehicle owners should be aware that uninsured and underinsured motorist coverage may vary depending on state regulations. While some states mandate this coverage, others may only require liability coverage. It is crucial to consult with a local insurance agent to understand the specific requirements and options available in your state.

The importance of uninsured and underinsured motorist coverage cannot be overstated. In the unfortunate event of an accident, it provides financial protection and peace of mind. No one expects to be involved in an accident, but it is always better to be prepared. By including this coverage in your farm vehicle insurance policy, you can rest assured that you and your passengers will be taken care of, regardless of the other driver's insurance status.

When considering uninsured and underinsured motorist coverage, it is essential to select appropriate coverage limits. Typically, individuals choose limits similar to their liability insurance limits, ensuring sufficient protection for their assets. It is recommended to consult with a trusted insurance provider to determine the best coverage limits for your specific situation.

Frequently asked questions