Zaneta Wood, Ed.S. has over 15 years of experience in research and technical writing bringing a keen understanding of data analysis and information synthesis to reach a wide variety of audiences. She studied adult education and instructional technology at Appalachian State University as well as technical and professional communication at East Carolina University. Zaneta has prepared technical p...

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Joel Ohman is the CEO of a private equity backed digital media company. He is a CERTIFIED FINANCIAL PLANNER™, author, angel investor, and serial entrepreneur who loves creating new things, whether books or businesses. He has also previously served as the founder and resident CFP® of a national insurance agency, Real Time Health Quotes. He has an MBA from the University of South Florida. Jo...

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Reviewed by Joel Ohman
Founder & CFP®

UPDATED: Jun 25, 2020

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Here's what you need to know...

  • Farmers pay less than average for car insurance
  • Insurance premiums rise and fall with the increase and decrease in natural disasters
  • Farmers can manage their business credit and a high credit score can keep insurance rates lower

Farmers, like everyone else, want to know how to get the most affordable car insurance rates. The average farmer pays $1,015.62 in car insurance premiums per year.

As car insurance rates by occupation go, this is one of the lower rates. Check out this farmer’s car insurance guide and see some ways to save on car insurance!

If you haven’t checked your car insurance rates in at least a year, chances are you can save money on car insurance. Start now by providing your home ZIP code into the box above for car insurance quotes today!

If you’re a farmer, perhaps you also maintain other vehicles needed to manage your agribusiness. Chances are good that your present car insurance company insures both your personal and business vehicles. Your home may be insured by the same company.

Farmers understand risk management because crop damage means financial loss. Damage can come from many sources including:

  • Drought
  • Rain
  • Tornado
  • Hurricane
  • Fire

Maintaining work tools needed for your home or business, such as your car, truck, or tractor, is another way to manage risk. That’s why car insurance is such an important financial planning tool for you.

Table of Contents

Why Farmers Should Evaluate Rates

Over the past few years, some farm-focused insurance companies have been hard-hit by weather-related loss claims. As most farmers know, a tornado or hail storm can damage crops and vehicles used by the farm or the farmer’s family.

If your present insurance company paid out higher than usual car insurance claims over the past few years—even if they didn’t pay out claims to you—your car insurance rates may have increased.

Farmer’s cooperative or mutual insurance companies reported larger than usual claims payouts from 2007 to 2010.

Tornados and other natural disasters in 2011 resulted in a huge spike in insurance claims.

Since then, disasters and claims have settled into a more average range.

The financial health of your insurance company, like your personal and commercial financial health, affect how much you pay in car insurance rates.

If your current insurance company pays out significantly higher claims over a multiple year period, their ability to pay claims in the future (such as when you present a claim for payment) may decline.

Most farmers are very busy people. You may not have a lot of free time with which to compare your car insurance rates. Simplifying the process, by requesting a wide range of car insurance quotes, can help you get control of your car insurance costs.

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Enter your ZIP code below to view companies that have cheap car insurance rates.

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How Farmers Can Lower Rates

Here are a few ideas for finding lower car insurance rates:

Combining Policies

If your home is insured by the same insurance company as your farm or agribusiness, you may qualify for car insurance discountsAccording to Kiplinger Finance, you should look for discounts of about 15% when insuring your car and home with one insurance company.

If you add an umbrella liability policy or commercial business insurance, ask your insurance agent if that could save you money on car insurance, as well.

Lowering Credit Score

Ask your car insurance agent about what credit files may be accessed in determining your insurance costs. For example, your business may have a lower than usual credit score during a bad crop year. Your personal credit score may remain high throughout the period.

Conversely, your personal credit score may be lower than your business credit profile. If you’re building a business credit profile, consider adding your business to Dun & Bradstreet’s Small Business Credibility division.

Submit financial information to start building a commercial credit file to save money on future expenses, including commercial car insurance, loans, and costs of running your business.

Check your personal and business credit file before applying for any new insurance policy or capital equipment purchase.

If your credit file(s) have any errors, make sure to correct them before making an application.

Submit corrections and support materials in writing to Equifax, Experian, and TransUnion when errors appear on all three reports. Check each file for erroneous public information.

The major credit reporting organizations collect data from public records. Such information is not always accurate.

Insure Vehicles on a Separate Policy

Insuring your personal vehicles with a separate car insurance policy may sometimes save you money.

If your farm suffered a large financial loss that resulted in a claims payment from an insurance company, all of your insurance rates may increase.

As a safe driver without moving violations or accidents for three-plus years, you may qualify for better car insurance rates.

Learning whether you’re paying too much for car insurance rates is possible without exerting a lot of effort. Simply supply your home ZIP code to request fast, zero-cost car insurance quotes!