In Ethiopia, small-scale farmers’ are exposed to a number of agricultural risks and uncertainties due to their livelihood’s vulnerability to variation in weather conditions. To manage these risks, introducing crop insurance scheme could be considered as an essential alternative management tool. As a result, this study was aimed to examine the willingness of smallholder farmers’ to use crop insurance in Meket woreda. A multi-stage random sampling technique was employed to draw sample respondents. To elicit farmers’ willingness to pay for weather index-based crop insurance, double bounded dichotomous choice followed by openended question format of the contingent valuation method was used. The study employed descriptive and econometric techniques to analyze primary data obtained from 261 sampled farmers in the study area. Out of the sampled farmers, 161 (61.69%) were willing to participate in the proposed weather index-based crop insurance. To analyze factors affecting farmers’ willingness to participate and maximum amount of money they were willing to pay, Heckman two-stage model was used. Results of the first stage’s Heckman model revealed that marital status, total cultivated land size, total farm income, frequency of extension contact, membership in social organizations, access to credit and perception of weather-related risks had significant positive influence on farmers’ willingness to participate in the proposed crop insurance scheme, while sex, age, distance of residence from the nearest market, household size and off-farm income had significant negative influence on it. Results of the second stage’s Heckman model showed that total farm income, off-farm income, frequency of extension contact and membership in social organizations had significantly and positively affected farmers’ maximum willingness to pay, while age, marital status and credit access had influenced it significantly and negatively. This study also used a seemingly unrelated bivariate probit model to estimate the mean values that farmers’ were willing to pay. Accordingly, using closed- and open-ended question formats, on average, farmers were willing to pay at 141.92 and 134.97 Birr per Timad per year, respectively. Finally, the study suggested government and other concerned bodies need to give attention and introduce weather-based crop insurance for reducing farmers’ vulnerability to crop production risks which are related to weather and have to consider the variables that significantly affect willingness to pay. Keywords: weather-based crop insurance, contingent valuation, Heckman two-stage model