Every farmer knows how vital and essential their farm machinery is to keep their business running effectively, and with it the need to protect these assets.

You might have second hand machinery that is well worn but still working and used daily, as well as brand new kit that cost hundreds of thousands of pounds. You may also have classic tractors for show or occasional use.

Then there are your private vehicles, including cars, farm trucks, commercial vehicles, ATVs and even a ride-on mower. All of these require motor insurance.

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What should I consider when looking for a farm machinary policy?

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Grouping policies together

Consolidating policies can save you time and money and provide a better standard of cover. The advantages include:

• Fleet rates can be more competitive than insuring individual vehicles • You may be able to benefit from any driver cover options rather than just specified drivers • Having one renewal date, one broker and one point of contact can remove a lot of the admin • You’ll avoid calling different people, for different vehicles, at different renewal dates for different questions • A simpler claim experience when something does go wrong.

Assuring you have the right cover

When buying insurance for your vehicles, you’ll have the choice to cover them on either a Market Value (also known as indemnity) or Agreed Value basis.

Indemnity basis means you are insured up to the value of the vehicle at the time of the loss, taking account of age, mileage and wear and tear. You should be no better or worse off following a claim. For agricultural vehicles, this is capped at the value you declare on your policy.

You may choose fully comprehensive cover, meaning that in the event of a loss, both your vehicle and any damage to third party property is covered. Or Third Party Fire & Theft, which only covers your vehicle for theft and fire damage. These two options are most common and suited to nearly all vehicles on the farm.

Agreed Value insurance is where you agree a fixed amount that your vehicle is worth. It is a way of guaranteeing value in the event of a loss. It can suit vehicles that are worth more than average for that particular age and model, or high value or unique vehicles like vintage tractors or classic cars.

Some other considerations:

• Most new vehicles will be insured ‘New for Old’ in the first 12 months of the vehicle’s life.

• All policies should extend liability protection, which covers you for any damage to people’s property or injury you may have caused.

• Trailed agricultural equipment is often automatically covered to the same level of the towing vehicle and specialist agri fleets usually give cover for these free of charge up to certain limits whilst attached and detached.

• For quads, ATVs and ride-on mowers, even where a vehicle is not often driven on the road, it is worth insuring it on a motor policy. Otherwise, in the event of an incident, you could be personally liable for damages.

• Make sure your sums insured include any expensive GPS system and check for any policy conditions that cover restrict theft cover on these valuable items.

How to insure my farm machinery

Speak to a specialist rural broker on how to get better value cover for your vehicle by contacting a member of the team today on 03301 658 940 or emailing insurance@cla.org.uk