Similar to expenses such as your energy bill or phone bill, car insurance is an expenditure that you will always have to pay. Auto insurance is required in most states and is also mandated by financial institutions to lease or finance a car. Unlike bills such as your mortgage or car payment, your auto insurance rate will be determined based on several factors.
What You Need to Know About Auto Insurance for AG Workers
Auto insurance companies create premium rates based on variables such as your driving record, age, gender, credit score, location, and type of vehicle. Insurers will then use this information to determine the risks associated with your particular situation. While there are insurance exceptions and regulations for various types of vehicles and equipment, agricultural workers must adhere to regular coverage requirements.
As discussed, most states in the U.S. require that all drivers maintain a minimum amount of liability insurance on any vehicle driven on the roadways. Liability insurance laws ensure that everyone on the road is protected in the event of an accident. Liability policies provide coverages to other drivers if you are at fault in an accident. Liability auto insurance will cover property damage and bodily injury claims for the other drivers. However, it will not cover you or your vehicle. Like all other drivers, agricultural workers must have the minimum liability coverages mandated in their particular state.
Additional collision and comprehensive coverage policies, known as full coverage, will protect policyholders and their vehicles no matter who is at fault. Agricultural workers have the same requirements and coverage options as any other driver. In some states like Texas, where there is a large agriculture industry, workers and their family members could qualify for Ag workers auto insurance with membership-based coverage.
Ag Workers Mutual Auto Insurance
AgWorkers Insurance is a Texas-based auto insurance company that provides coverage to agricultural workers, their families, and the affiliated community. Eligibility is based on being a member of the agricultural community. Similar to a credit union, insurance is only offered to members of the specific community. To be a policyholder, you must meet certain criteria.
To become a member, you must be eligible for either a 6-month policy or a 12-month policy. 12-month policyholders are considered full members and receive a dividend of around 17 percent a year. To qualify for a 12-month policy, you must hold a degree in Agriculture, Natural Resources, Veterinary Medicine, or other Life Science or Horticultural area. You can also qualify if you are actively working in some agricultural field or you own agricultural land. 6-month policyholders must meet one of the previously mentioned requirements, be a member of select agricultural associations, or be an extended family member of a policyholder.
Insurance Coverage
Agricultural Workers Mutual Auto Insurance offers coverages similar to other insurers. They offer liability insurance coverage that meets the minimum standard required by the state of Texas. They also offer comprehensive coverage, which will cover the policyholder’s car after an accident, weather-related incidents, theft, or vandalism.
Agricultural workers may also purchase medical payments and personal injury protection, uninsured motorist protection, and rental reimbursement coverage. These are the basic policies that most insurers offer. Given the scope and size of the company, they do not offer any additional policies that larger insurers might offer.
While agricultural workers must purchase and maintain the same amount of insurance as required of other drivers, they may have the option for members-only coverage. Similar to coverage options at other insurance companies, premium rates will be based on various factors like driving record and type of vehicle. There aren’t any advertised discounts, however, 12-month policyholders get the equivalent of about one month’s insurance in earned dividends each year. If you’re a rancher or farmer in Texas, you can look into insurance coverage with Ag Workers.