Even if a tractor or farm truck is mostly used on your private property, carrying farm vehicle insurance is highly recommended to safeguard your investment. To learn what coverage you need (and what you don’t need), keep reading (or call Insure on the Spot at 773-202-5060 for quick help with insuring your farm vehicles).
Why Farm Vehicle Insurance Is Important
Farm vehicles are essential tools for running your agricultural operations, but they also carry significant risks if not properly insured. Consider that approximately 15,000 farm vehicles are involved in highway crashes in the U.S. each year. These collisions can be devastating: due to the weight and size of farm equipment, accidents involving farm vehicles often cause more severe damage to other cars and people than ordinary traffic crashes.
Beyond accident risks, farm vehicles themselves are high-value assets. Tractors, combines, and heavy-duty pickups often cost tens of thousands of dollars. If one is destroyed by a barn fire, stolen, or damaged in a rollover, would your farm survive the loss? Farm vehicle insurance ensures you won’t have to pay the full replacement or repair cost out of pocket. It also provides liability protection if your equipment injures someone or damages someone else’s property.
What Counts as a Farm Vehicle?
“Farm vehicle” generally refers to any vehicle used primarily for agricultural operations. This can include a wide range of equipment, such as:
- Tractors and Combines: The heavy machinery used for plowing, planting, and harvesting.
- Farm Trucks: Pickup trucks or larger grain trucks used to haul supplies, produce, or livestock. (These may have special farm license plates in Illinois, but still require insurance when on public roads.)
- All-Terrain Vehicles (ATVs) and Utility Task Vehicles (UTVs): Small motorized vehicles used around the farm for hauling tools or inspecting fields.
- Farm Trailers: Trailers for carrying equipment, hay, or animals (often towed by a truck or tractor).
- Other Specialized Machinery: For example, sprayers, plows, or forklifts that occasionally travel between fields.
If it has a motor and wheels and you use it in your farming business, you should treat it as a farm vehicle for insurance purposes. Keep in mind that Illinois requires insurance for any motor vehicle that is registered and driven on public roads. That means even your farm pickup or a tractor driven down a public highway to the next field needs at least liability coverage. (Trailers, on the other hand, do not need separate liability policies since they’re covered under the towing vehicle’s insurance in Illinois.)
What Does Farm Vehicle Insurance Cover?
Farm vehicle insurance typically provides similar protections to standard auto insurance, but tailored to agricultural use. Key coverage types include:
Liability Coverage
This pays for bodily injury or property damage that you cause to others in an accident. It’s the core coverage required by law in most states. For example, if your farm truck accidentally side-swipes a neighbor’s car, liability insurance covers their repair bills (and legal costs if they sue). Illinois’s minimum liability limits are $25,000 per person / $50,000 per accident for injuries, and $20,000 for property damage, often written as 25/50/20 coverage. You can choose higher limits for better protection.
Collision Coverage
This covers damage to your farm vehicle from traffic accidents or collisions, regardless of fault. If you crash your pickup into a tree or another vehicle, collision insurance pays for your truck’s repairs. This is especially important for farm trucks that venture onto public roads or between fields.
Comprehensive Coverage
This covers damage to your vehicle from non-collision events – for instance, theft, fire, vandalism, flood, or a barn roof collapsing on your tractor. Comprehensive (often called “other than collision”) will even cover accidents involving animals (say, if you hit a deer). Without this coverage, incidents like storm damage or equipment theft would not be covered by a basic liability-only policy.
Uninsured/Underinsured Motorist Coverage
Protects you if your farm vehicle is hit by a driver who has no insurance or not enough insurance. Unfortunately, not everyone on rural roads carries adequate coverage. Uninsured motorist (UM) insurance will pay for your injuries (and sometimes vehicle damage) in such cases. Illinois law actually requires UM bodily injury coverage equal to the liability minimums, to ensure you’re covered if an at-fault driver lacks insurance.
Medical Payments Coverage
Also called “MedPay,” this optional coverage pays for medical bills if you or your passengers are hurt in an accident, regardless of who was at fault. For example, if you roll an ATV and need hospital care, MedPay can help cover your out-of-pocket costs. It’s a useful add-on, especially since farm vehicles often have unique riding situations (like an extra worker riding along on a tractor fender).
Other Specialized Coverages
Farmers often have unique insurance needs. You might consider cargo coverage if you regularly haul produce, feed, or livestock – this covers the value of goods in transit (so a spilled load or livestock injury en route to market doesn’t come out of your pocket). If you hire or borrow vehicles during harvest season, Hired or Non-Owned Vehicle coverage can extend liability protection to those instances. And if your farm vehicles include custom equipment or attachments (sprayers, loaders, etc.), be sure to discuss those with your insurer because additional endorsements might be needed to cover attached implements or modifications.
How Is Farm Vehicle Insurance Different from Regular Auto Insurance?
At a glance, insuring a farm vehicle is a lot like insuring a regular car. You’ll find similar coverage options and the same legal requirements for liability on public roads. However, there are a few important differences that can work to a farmer’s advantage:
Lower Risk = Lower Premiums
If your truck or vehicle is truly a farm-use vehicle (driven mostly on your property or only short distances on rural roads), it likely costs less to insure than a typical personal vehicle. Why? Farm vehicles often have limited annual mileage and spend less time in high-traffic areas, which reduces the risk of accidents. In fact, if a farm truck stays off public roads most of the time, insurers consider it lower liability risk, and the insurance cost is almost always less than for an everyday driving truck. Many farmers are pleasantly surprised to find that farm truck insurance is generally more affordable than standard auto policies.
Different Usage Patterns
A farm vehicle might sit in the barn all winter and then run hard during planting or harvest season. Insurance companies understand these seasonal usage patterns. You can often arrange coverage (or adjust certain coverages) to accommodate off-season downtime. For example, some farmers carry comprehensive coverage year-round (protecting against fire, theft, etc.), but only activate liability and collision during the months the vehicle will actually be on the road. An experienced farm insurance provider can help schedule your policy to save money while still keeping you protected.
Personal vs. Commercial Policies
Depending on how your farm is set up, you may insure a vehicle under a personal auto policy or a commercial/farm policy. If your pickup truck is titled in your name and used for both farm chores and family errands, it might qualify for a standard auto policy (often with a farm-use endorsement). But if your vehicle is a heavy-duty truck registered to a farm business (e.g., an LLC) or used primarily for commercial farming tasks, you’ll likely need a commercial auto or farm truck policy. The coverage itself is similar, but a commercial policy can handle things like multiple drivers, higher liability limits, or special equipment. Don’t worry, when you work with Insure on the Spot, our agents will help you figure out the right type of policy for each vehicle.
Bundling with Farm Coverage
Many farmers have an overarching farm insurance package (covering their home, barns, general farm liability, etc.). It’s often possible to bundle farm vehicle coverage with your broader farm policy, or with your personal auto/home insurance, for a discount. Insurance companies reward customers who combine multiple policies. By having your farm vehicles and your farm property or personal auto under the same provider, you could save significantly on premiums. Plus, it streamlines your paperwork into one policy or bill. Always ask about multi-policy discounts or farm package options when insuring your vehicles.
Coverage for Unique Exposures
Farm vehicle insurance can offer options that standard car insurance typically doesn’t. For instance, if you use your truck to tow a horse trailer or expensive farm equipment, you might need higher liability limits or an inland marine policy (for equipment in transit). If employees or family members under 18 drive the farm vehicles, you’ll want to ensure they’re properly listed and covered (whereas a teen driving the family sedan raises different questions). Working with an insurer who understands farming ensures that all those unique factors are accounted for, so you’re not left with coverage gaps.
Farm Vehicle Insurance Requirements in Illinois
Illinois does not have a special exception that lets you drive an uninsured farm vehicle on public roads. Under Illinois law, any motor vehicle with license plates that is driven on public streets must be insured with at least the state-minimum liability coverage. For Illinois in 2025, those minimums are $25,000 per person for bodily injury, $50,000 per accident bodily injury, and $20,000 for property damage. (You’ll often see this written as 25/50/20 coverage). The law also requires uninsured motorist coverage in equal amounts for bodily injury, as mentioned earlier. If your farm vehicle is a truck or pick-up, you’ll be issued an insurance card just like any car, and you’ll need to carry that proof of insurance whenever you drive on public roads.
What if you only use the vehicle on the farm property? If a vehicle is truly never driven on a public road, Illinois’ insurance law doesn’t force you to insure it. For example, if you have a combine or an old farm truck that never leaves your land, you won’t get ticketed for lack of insurance on it (since you’re not registering it for road use). However, be absolutely sure about its usage. The moment you take that vehicle onto a public roadway, even just to cross to the next field, it needs to be insured. Many farmers register certain trucks with special farm plates that permit limited road travel (typically within a set radius of the farm). Having farm plates does not exempt you from carrying insurance. It simply identifies the vehicle’s use and might limit how and when you can use it. If you’re using those plates, make sure your policy reflects that; insurers will still require you to meet the liability laws if the vehicle is street-legal.
Importantly, driving any vehicle without insurance in Illinois carries serious penalties. If you’re pulled over in your farm truck and can’t show insurance, you could face a fine of at least $500 for a first offense and suspension of your vehicle’s registration. Repeat offenses incur higher fines (up to $1,000) and longer license plate suspensions. In practice, an uninsured accident could be even worse, so if your tractor causes an accident and you have no insurance, you would be personally liable for all damages. That could include lawsuits, medical bills, and property repairs that easily total in the tens or hundreds of thousands of dollars. It’s just not worth the risk.
(Side note: Trailers are not considered motor vehicles and are exempt from Illinois’ liability insurance requirement. You don’t need a separate policy for a farm wagon or trailer. However, the vehicle towing it (truck or tractor) must be insured, and you should ensure your liability limits are high enough in case the trailer causes damage in an accident. For high-value trailers (like expensive livestock or equipment trailers), you may add them to your policy for physical damage coverage, since the tow vehicle’s comp/collision typically won’t cover an unpowered trailer.)
How to Get the Right Farm Vehicle Insurance
Insuring your farm vehicles isn’t complicated if you go step by step. Here’s how to make sure you get proper coverage at an affordable price:
Take Inventory of Your Vehicles
Make a list of all vehicles and equipment on your farm that have engines or wheels. Note how each is used – on-road vs. off-road, approximate miles driven, who drives it, etc. This helps determine what kind of policy and coverages you need for each. (For example, a pickup that goes to the farmers’ market weekly is different from a tractor that never leaves the back 40 acres.)
Decide on Coverage for Each Vehicle
At minimum, any vehicle that might go on public roads needs liability insurance. Beyond that, consider if you want collision/comprehensive on the expensive pieces (generally a good idea for newer or high-value tractors and trucks). Also think about extras: do you haul valuable cargo? Do you have employees driving? Jot down which coverages make sense so you can discuss them with an agent.
Contact a Knowledgeable Insurance Provider
It’s wise to work with an agent or company that understands farm insurance. Give Insure on the Spot a call. Our team has experience helping Illinois farmers and rural drivers. We’ll ask the right questions to pinpoint your needs. You can reach us at 773-202-5060 to talk through options, or even get started with a free quote in minutes. (We’ll compare rates from multiple insurers to find you the best deal.)
Ask About Discounts
Insurance companies offer various ways to save. If you have multiple farm vehicles, you’ll usually get a multi-vehicle discount. If you also need personal auto or home insurance, bundling those with your farm vehicle policy could cut costs further. You might also get credits for things like a good driving record, having safety features on tractors, or taking a farm safety course. Don’t be shy – ask what discounts are available for your situation.
Choose a Policy and Stay Insured
Once you’ve found a policy that covers your needs, go ahead and secure coverage. The insurer will provide proof of insurance (insurance cards) for your vehicles. Keep those handy, especially in any vehicle that goes on the road. Mark your calendar for the renewal date each year, and make sure not to let coverage lapse. Illinois uses an electronic verification system to check that registered vehicles have insurance, so staying continuously insured will save you from headaches with the DMV.
Frequently Asked Questions about Farm Vehicle Insurance
Is insurance cheaper for farm vehicles than for regular cars?
Yes, farm vehicle insurance is generally more affordable than a standard auto policy for a personal-use car. Insurance premiums are based on risk, and farm vehicles often present a lower risk to insurers. They tend to be driven fewer miles and mainly in rural areas, which means they’re less likely to be in crashes or heavy traffic. Also, if a vehicle is used exclusively on your farm (and not for commuting or daily errands), there’s significantly less liability exposure. All of this can translate to lower rates. In fact, insurers note that if a truck truly remains on the farm and is used just for farm work, the cost to insure a farm truck is almost always lower than the cost to insure that same truck for everyday personal use. Remember, to qualify for these savings, be upfront about your vehicle’s usage with your insurance agent. If you occasionally use the “farm” truck for personal trips, that’s okay, just let them know so they can place it on the correct type of policy and still get you any applicable farm-use discounts.
Do I need insurance on a farm truck that never leaves my property?
Legally, if a vehicle truly never goes on public roads, you are not required by Illinois law to carry insurance on it. That’s why some farmers have old trucks or tractors they use only on the farm without insurance. However, it’s important to consider the risk you’re taking. Even on private property, accidents can happen. For example, the truck could roll over, catch fire, or be accidentally driven into a piece of expensive equipment. If you’re uninsured, you’ll eat 100% of those costs. These days, most farmers opt to insure their farm-use vehicles anyway, specifically to avoid huge out-of-pocket expenses if an accident occurs. Another factor: if there’s any chance you might need to take that vehicle on a public road (even briefly), it’s safer to keep at least liability coverage on it at all times. Insurance for a strictly farm-use vehicle is typically inexpensive, so for most people the benefit far outweighs the cost.
What kind of insurance do I need for a farm, besides vehicles?
Running a farm involves various risks, so a comprehensive farm insurance plan covers more than just your vehicles. Beyond farm vehicle insurance (which we’ve discussed), you should look at:**
- Farm Property Insurance: to cover your farmhouse, barns, sheds, and other structures, as well as farm equipment or tools, against perils like fire, storms, or theft.
- Farm Liability Insurance: to protect you if someone is injured on your farm or if your farming operations cause damage to someone else’s property. (For example, if livestock escape and cause a car accident, or a farm visitor slips in the barn.)
- Crop or Livestock Insurance: if you depend on income from crops or animals, there are policies to compensate you for losses due to bad weather, disease, or other disasters.
- Workers’ Compensation: if you have employees, this coverage is often required to cover medical costs and lost wages if they get hurt on the job.
Does farm vehicle insurance cover tractors and ATVs, or just trucks?
“Farm vehicle insurance” is a broad term. It can cover any motorized vehicle used in your farming operations, not just trucks. You can insure tractors, combines, ATVs, UTVs, and other machinery for liability when they’re on the road, as well as for damage or loss. The exact approach might differ: smaller vehicles like ATVs might be insurable either under a farm policy or a special off-road vehicle policy. Tractors and combines can often be scheduled on a farm equipment policy for physical damage, and added to an auto policy for road liability when needed. The important thing is to discuss each piece of equipment with your agent. Typically, if it has a serial number and significant value, it can be insured. Farm trucks (pickups) are usually insured much like cars, whereas large equipment might be covered under an inland marine or farm personal property policy for damage. But from the farmer’s perspective, you can still think of it collectively as insuring your “farm vehicles.” When you work with a provider like Insure on the Spot, we’ll make sure every tractor, truck, and ATV on your farm is properly covered, whether that’s through a standard auto policy or another form of coverage.
Have more questions about protecting your farm on wheels? Reach out to Insure on the Spot at 773-202-5060. We’ll be happy to answer your questions and help you get the right coverage at the best price for your farm vehicles, so you can farm with confidence knowing you’re covered.