There are more than 58,000 food trucks doing business in the U.S., according to data from research firm IBIS World. But there are plenty of other kinds of food-service establishments, ranging from bakeries to caterers to sit-down restaurants that rely on vehicles to serve their customers. For these small businesses, commercial vehicle insurance is essential
In nearly every state, food and beverage businesses that own or lease vehicles must carry commercial liability auto insurance. This type of insurance covers your financial responsibilities if you or one of your employees causes an accident while driving a work vehicle and includes bodily injury and property damage liability.
Food and beverage businesses can supplement that coverage with comprehensive and collision insurance. Comprehensive insurance covers non-collision events, like fire, theft, natural disasters, vandalism, broken glass and animal damage. Collision insurance covers accidents and collisions with another vehicle or object.
On average, a food and beverage business can expect to pay about $170 per month or $2,041 per year for full coverage commercial vehicle insurance, according to small business insurance agency Insureon.
However, the premium your food and beverage business pays for liability, comprehensive, and collision insurance depends on several factors, such as the age of the drivers and their driving records, the types of vehicles you own, what those vehicles are used for, the coverage you choose and other criteria, says Kristin Thelen, director of account management for Insureon.
In this guide, we’ll share the average cost of commercial auto insurance for food and beverage businesses and explain how insurance companies calculate premiums. We’ll also share some tips for saving money on your commercial car insurance policy.
- The average cost of commercial vehicle insurance for food and beverage business is $2,041 per year, or about $170 per month.
- The cost of commercial vehicle insurance depends on factors such as industry, location, fleet size, claim history, policy limits and deductible.
- Commercial auto insurance is a legal requirement in most states for food and beverage businesses that own or lease vehicles or trucks.
- Most commercial insurance companies, including Auto-Owners, Berkshire Hathaway, The Hartford and Progressive, offer vehicle insurance for food and beverage businesses.
How much is commercial auto insurance for food and beverage businesses?
The average cost of commercial vehicle insurance for food and beverage businesses is $2,041 per year, or about $170 per month, according to Insureon. However, the actual amount your business will pay depends on several rating criteria, including the carrier you choose. For example, Insureon estimates that a restaurant will pay $181 per month for commercial auto coverage, while Next Insurance estimates that cost at $220 monthly.
Below are average monthly commercial vehicle insurance costs for various food and beverage businesses, based on Insureon estimates:
- Bakeries: $160
- Caterers: $164
- Delis and sandwich shops: $170
- Fast food restaurants: $111
- Food trucks: $170
- Food vendors: $156
- Restaurants: $181
Types of retail businesses that may need commercial auto insurance
While food trucks may seem like the most obvious type of food services in need of commercial vehicle insurance, there are many others that may need to buy coverage as well if they routinely drive as part of doing business, including:
- Bakeries
- Banquet halls
- Bars
- Caterers
- Coffee roasters
- Coffee shops and cafes
- Delis
- Fast food restaurants
- Food trucks
- Food vendors
- Ice cream shops and trucks
- Juice bars
- Mobile bartenders
- Nightclubs
- Personal chefs
- Pizzerias
- Restaurants
How are commercial auto insurance rates determined for food and beverage businesses?
As you can see, premiums can vary significantly depending on the kind of food and beverage business you operate.
Insurers use different criteria to determine the risk of insuring your food and beverage business. The riskier your business is to insure, the higher your premium will be.
Where your food and beverage business is located is one of the greatest factors. For example, if your business operates in a state that experiences severe weather or if you park your food truck in a neighborhood with high crime, you can expect to pay a higher insurance premium.
Vehicle usage is another thing that determines your business auto insurance cost. If your food and beverage business has multiple vans driven long distances to catering jobs, for example, you can expect to pay more than a smaller fleet used for local trips. The types of vehicles you own can also impact your premium.
Other factors include:
- Number of vehicles your business uses
- Claim history
- Driving records for yourself and your workers
- Endorsements and policy limits
Do policy limits affect commercial auto insurance premiums?
Commercial auto insurance policy limits have a direct effect on premiums. The higher your coverage limit, the more expensive your rate will be. When you’re purchasing commercial auto insurance, it’s important to choose the right amount of coverage.
Nearly every state requires small businesses to carry a minimum amount of commercial auto insurance. Most states require liability insurance, but others have additional requirements, like uninsured/underinsured motorist insurance and personal injury protection (PIP).
If you choose a full coverage policy, your commercial auto insurance will also cover the cost of repairing a business vehicle or replacing a vehicle that gets totaled in a covered loss. Full coverage also includes comprehensive insurance, which covers non-collision damage, such as theft, vandalism, hail, falling objects and floods.
While a state minimum coverage policy is the cheapest commercial auto insurance you can legally have, paying a higher premium for a full coverage policy will provide much more financial protection in case of an accident or other covered loss.
Many insurance companies recommend a business coverage limit of $1 million, according to the Insurance Information Institute (Triple-I), an industry trade group. While you might think a higher limit will add to your costs, Triple-I says it doesn’t add much to the price, especially considering the additional protection it provides.
How food and beverage businesses can shop for commercial auto insurance
If you’re shopping for commercial auto insurance, it’s a good idea to get multiple quotes for your business. Comparison shopping will help you find the most affordable commercial auto insurance for your industry, fleet size and other factors.
Here are some tips for getting the most accurate commercial auto insurance quotes:
- Gather driver details. For any employee who’ll drive for you, collect their names, addresses and driver’s license numbers. Some insurers might also ask for their Social Security numbers.
- Determine coverages you need. If you want to be covered for physical damage to your work vehicles, consider a full coverage policy with collision and comprehensive insurance.
- Figure out policy limits. If you have higher risks – your vehicles operate in a congested, traffic-filled area – you might need more coverage than a food truck that parks by the side of the road.
- Choose a deductible. Deductibles are what you pay out of pocket before insurance kicks in. A higher deductible will lower your monthly premium, while a lower deductible will result in a higher premium. But be careful to choose a deductible that you can comfortably afford in case of a claim.
How food and beverage business can save on commercial auto insurance
Commercial auto insurance premiums are different for every business type. Premiums can be expensive depending on your location, fleet size, employee driving records, claim history and other factors. However, there are ways to save on business vehicle insurance.
Here are some ways that you can reduce your commercial auto insurance costs:
- Ask about discounts. When you purchase an insurance policy, ask the agent if safe-driver or other discounts are available and how you can qualify.
- Bundle your commercial policies. If you purchase other policies, such as general liability insurance or commercial property insurance, from the same company, the package of insurance policies will be less than buying them separately
- Pay upfront. If you pay your annual premium upfront and in full, most insurance companies will give you a discount.
- Enroll in a telematics program. These programs track driving behaviors with GPS and other technologies and, if your employees drive safely, you could get a discounted premium.
- Select a higher deductible. Upping your deductible will lower your monthly premium. However, take care to choose a deductible you can afford in the event of a claim.
- Compare quotes. Most experts recommend getting at least three quotes to ensure you get the best rate. But when looking at the rate, make sure all the policies are for the same coverage and limits.
Which insurance companies offer commercial auto insurance for food and beverage?
Most commercial insurance companies sell vehicle insurance for food and beverage businesses. Here are some companies you might consider if you’re shopping for this type of insurance:
- Auto-Owners
- Berkshire Hathaway
- The Hartford
- Progressive
- State Farm
Insurance.com, which is operated by the same company that owns CarInsurance.com, has a list of the top 10 commercial auto insurance carriers.
Sources
Insurance Information Institute. “Business Vehicle Insurance” Accessed June 2025.
Frequently asked questions
Does your industry affect the cost of commercial auto insurance?
Yes, the industry your business operates in impacts your commercial car insurance premium. In general, businesses in high-risk industries, like trucking and manufacturing, pay higher premiums than lower-risk industries, such as professional services. However, other factors also affect your premium, like your location, fleet size, vehicle types and policy limits.
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