Understanding Insurance Policies

A farming operation may require laborers to handle all aspects associated with the growth of crops, necessitating the usage of an insured vehicle when delivering goods or purchasing materials that will be used on an expanse of farmland. Commercial auto insurance that is designed to cover independent and professional farmers can provide protection during and after operational duties.

Road Ready Vehicles

Farm vehicles that require insurance may include tractors, trucks, diggers, and other equipment that contains tires and a driving compartment. Any vehicle that will potentially be used to transport goods along paved and unpaved roadways will need to be insured. A road ready vehicle that will be solely used on farmland will not need to fulfill any of the licensing, registration, or insurance requirements of a standard commercial vehicle. Insurance for farm vehicles can be classified as commercial, farm, or personal coverage.

A commercial policy is one that is essential for frequent deliveries or work-related tasks that will be conducted off of your farm. Farming insurance coverage provides comparable protection, but may not always be offered through every insurance provider.

Personal automotive insurance can be used for vehicles that will be essential in farming operations and personal affairs. Each type of insurance coverage that an agent offers may require that farming vehicles are used a specific amount of time for an industrial-related purpose, in order to be eligible for specific coverage types.

Coverage Levels

Insurance coverage can include protection for a vehicular incident that is your fault or a range of driver scenarios that involve both you and other motorists. There are many risks involved in not having enough coverage. For instance, if you obtain basic liability insurance, but are involved in an incident that is the fault of a driver who is uninsured, you may need to incur some of the costs that are associated with damage to your vehicle.

Uninsured coverage can pay for medical bills and automotive bills that were directly caused by another driver who does not have adequate coverage. Commercial comprehensive coverage would provide protection against weather or animal-related damages or vandalism.

Commercial underinsurance coverage is similar to uninsured coverage. It protects motorists from fees that are the fault of another driver who does not have adequate insurance coverage. If you carry a farm or ranch policy and decide to purchase commercial insurance through the same provider, you may be able to combine your commercial auto insurance policies and receive a discount.