Farm Truck Vs Commercial Truck Insurance: Everything You Need To Know

hobby farm tractors

Trucking is the backbone of the Australian economy. Despite the outbreak of the pandemic, the trucking industry has enjoyed strong business conditions in 2021. The reason behind the fortunate fact is substantial growth in the e-commerce sector, the trend of Uber Freight, automation in fleet management, and development in farming practices. However, trucking, as an occupation or business, isn’t a cinch. Whether you own hobby farm tractors to operate in the fields or run a commercial transportation business, you need to cover several potential risks. These include the cost of damage to the vehicle, goods & supplies, and drivers under untoward incidents like accidents, theft, vandalism, fire, etc. This is where the right truck insurance comes into the picture.

The insurance coverages in both cases, that is, farm truck insurance and commercial truck insurance are not the same. It’s because of the difference in the nature of the work being done. Let’s understand!

What Is Farm Truck Insurance?

Farm vehicles, including hobby farm tractors, pickup tractors, and vans, are immensely important for day-to-day operations at the farm. From towing livestock to haul supplies, you bring farm trucks to several uses every day.

Depending on where your farm truck is used, your tractor insurance policy is affected in terms of cost and coverages. For example, if you are using a truck only on the farm property, both the cost and coverage for the insurance are less due to the minimized risk. On the other hand, the cost and coverage level of insurance rises if you also drive a farm truck to public roads to transport and sell the produced goods. 

What Is Commercial Truck Insurance?

The scope of operation in commercial trucks is always higher than in farm trucks. Having commercial tractor insurance can help you or your commercial trucking business stay protected in the case of accident, theft, injuries to drivers, and other losses. 

Whether semi-truck, dump truck, tow truck, garbage truck, box truck, or concrete truck insurance, your policy limit should be excessive enough to cover the cost of vehicles, employees, and goods. Some commercial truck insurance policies also cover the damage done to property in an accident.

Main Differences Between Farm Truck Insurance And Commercial Truck Insurance

From the meanings stated above, it is clear that the main difference between farm truck insurance and commercial truck insurance is LIABILITY. As commercial tractors are driven on public roads, vehicles, drivers, and goods are prone to a relatively bigger risk. That being said, the liability coverage for commercial tractor insurance is higher than farm truck insurance.

Another major difference between the two is COLLISION COVERAGE. Though it is an additional type of coverage, it is suggested to have it to protect yourself from the financial loss done due to damage to the truck in the event of an accident. In this case, the coverage limit for commercial tractors will also be more because of their large size and expensive prices. 

Ready Get The Best Truck Insurance Quote?

No doubt, the insurance cost and coverage levels are different for hobby farm tractors and commercial tractors, but the significance of insurance remains the same. That’s right; the protection to the vehicles, employees, as well as to the image of the business.

Now that you have a precise idea about the two different types of insurance, are you ready to buy the right truck insurance quote to enjoy the expected benefits? Ensure to provide authentic proof of a clean driving record and safe condition of your tractor for a better insurance premium deal.

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