Commercial Auto Insurance Cost for Food Businesses
Wondering how much commercial auto insurance costs? You’re in the right place. Learn more about how premiums are determined and how to keep yours as low as possible while safeguarding your food or beverage business.
How Much Does Commercial Auto Insurance Cost?
Commercial auto insurance from Food Liability Insurance Program (FLIP) costs roughly $292 per month on average. This average is based on premiums paid by our commercial auto policyholders in 2025.
What Factors Affect the Cost of Commercial Auto Insurance?
The cost of your commercial auto insurance is determined by several factors. Insurance underwriters consider each of these factors to calculate your premium.
| Cost Factor | How It Affects Your Premium | Why It Matters |
|---|---|---|
|
Your coverage needs |
More coverage (such as bundling with food truck general liability insurance) or higher limits typically increase your cost |
Policies with higher liability limits, physical damage coverage, or add-ons like hired and non-owned auto (HNOA) cover more risks, which costs more |
|
You (and your employees’) driving history |
Clean driving records keep costs lower, while accidents or traffic violations can raise them |
Insurance companies look at past driving behavior to predict future risks |
|
Your location |
Costs vary by state, city, or zip code |
Areas with increased traffic, higher accident rates, theft, or severe weather often have higher premiums |
|
Your profession or industry |
Some businesses cost more to insure than others |
Businesses that involve more driving or transporting heavy equipment often face more risks |
|
How your vehicle is used |
Heavy use typically costs more than occasional use |
Driving daily, long-distance traveling, or making deliveries increases the chance of an accident |
|
Type of vehicle |
Larger, heavier, or specialty vehicles often cost more to insure |
Repair costs, safety features, and potential damage all factor into pricing |
|
Number of vehicles you need to insure |
More vehicles tend to increase the overall premium, but may have a lower per-vehicle cost |
Insurance companies price based on total exposure, though fleet discounts may apply |
|
Claims history |
Prior claims may increase your rate |
A history of claims suggests a higher future risk |
|
Deductible |
Higher deductibles often mean lower premiums |
You agree to pay more out of pocket for a claim before insurance kicks in |
|
Years in business |
Newer businesses may pay more |
Less history makes it harder for insurance companies to determine risk |
|
Safety practices |
Strong safety programs can keep costs lower |
Driver training and regular vehicle maintenance reduce risk |
Can I Reduce the Cost of My Commercial Auto Insurance?
There are a couple of steps you can take to keep your costs as low as possible.
- Choose a higher deductible: Increasing your physical damage deductible can lower your premium, but it also means your out-of-pocket costs will be higher if you’re involved in a covered accident.
- Drive safely: Maintaining a clean driving record helps keep your commercial auto premium low. Always check your employees’ driving records before hiring them if one of their job duties involves driving a work vehicle or using their own vehicle for work errands.
- Opt for split limits: Split limits have lower maximums for bodily injury per person, bodily injury per accident, and property damage.
Some business owners choose to reduce their combined single limit (CSL) to lower their premium, but this is not a strategy we recommend. If your CSL is low, you have less coverage available to protect you if you get into an accident involving multiple people.
Why FLIP for Commercial Auto Insurance?
Choosing FLIP for your commercial auto coverage needs comes with perks.
Simple Online Application
Coverage All in One Place
Friendly, Helpful Customer Service
Highly Rated Coverage
Customizable Policy Options
24/7 Online Access to Policy Docs
How Do I Get a Quote?
Follow these steps to get a commercial auto insurance quote for your food or beverage business from FLIP:
2. Provide essential info about your business, including:
✔️ Vehicle type, year, make, and model
✔️ Vehicle identification number (VIN)
✔️ Value of permanently attached equipment
✔️ Farthest one-way distance typically traveled
✔️ Driver’s license numbers (for you and your employees)
3. Submit your information
4. A licensed agent will contact you with your free quote
FLIP is proud to offer commercial auto insurance for food businesses in the following states:
- Arizona
- Colorado
- Connecticut
- Florida
- Georgia
- Illinois
- Louisiana
- Maryland
- Michigan
- North Carolina
- New Jersey
- New York
- Ohio
- Pennsylvania
- South Carolina
- Tennessee
- Texas
- Utah
- Virginia
FAQs About the Cost of Commercial Auto Insurance
Are Trailers and Attached Kitchen Equipment Covered Under Commercial Auto or Inland Marine?
Inland marine (tools and equipment) only covers mobile business gear that is not permanently attached to your vehicle or trailer, like portable appliances or generators. If something is installed in your truck or trailer, like a stovetop or a deep fryer, your commercial auto policy will likely cover it.
What Limits and Deductibles Do Most Food Businesses Choose?
Many mobile businesses, such as food trucks, opt for a $1,000,000 combined single limit (CSL) . However, the limit you choose should depend on your unique needs, including the cost of all permanently attached business equipment in your work vehicle.
Can Telematics or Dash Cams Lower My Premium?
Yes, there is an option to install a telematic device that tracks your speed and location. If the device shows you are a lower risk, you can receive a discount on your commercial auto premium.
Once you’ve submitted your application and have received your quote from an agent, ask them about this program if you are interested.
Does Personal Auto Cover Business Use of My Vehicle?
No, most personal auto policies do not cover any business use of your vehicle, regardless of whether you’re using it to run a work errand or transport food to an event. That means any accidents that occur while you’re using your personal vehicle for business reasons will not be covered.
Only commercial auto insurance can cover claims related to the business use of your vehicle, making it essential coverage for anyone who uses a vehicle for work.
Reviewed by: Kyle Jude
Kyle Jude is the Program Manager for Food Liability Insurance Program (FLIP). As a dedicated program manager with 10+ years of experience in the insurance industry, Kyle offers insight into different coverages for food and beverage business professionals who are looking to navigate business liability insurance.