Food Truck Car Insurance: Compare Rates, Discounts, & Requirements in 2024 (Top 10 Companies)
Progressive, Farmers, and State Farm stand out as the top providers for food truck car insurance. Tailored coverage from these companies ensures comprehensive protection for your mobile business. Make informed decisions by comparing rates to guarantee the success of your venture on the road.
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Dani Best
Licensed Insurance Producer
Dani Best has been a licensed insurance producer for nearly 10 years. Dani began her insurance career in a sales role with State Farm in 2014. During her time in sales, she graduated with her Bachelors in Psychology from Capella University and is currently earning her Masters in Marriage and Family Therapy. Since 2014, Dani has held and maintains licenses in Life, Disability, Property, and Casualt...
Licensed Insurance Producer
UPDATED: Feb 13, 2024
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Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from top car companies please enter your ZIP code above to use the free quote tool. The more quotes you compare, the more chances to save.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.
UPDATED: Feb 13, 2024
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident car insurance decisions. Comparison shopping should be easy. We are not affiliated with any one car insurance company and cannot guarantee quotes from any single company.
Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from top car companies please enter your ZIP code above to use the free quote tool. The more quotes you compare, the more chances to save.
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Company Facts
Average Monthly Rate For Good Drivers
A.M. Best Rating
Complaint Level
Company Facts
Average Monthly Rate For Good Drivers
A.M. Best Rating
Complaint Level
Company Facts
Average Monthly Rate For Good Drivers
A.M. Best Rating
Complaint Level
Pros & Cons
Explore the food truck car insurance providers such as Progressive, Farmers, and State Farm known for their competitive rates and excellent customer service. Learn about the essential types of insurance coverage required, including commercial car, general liability, commercial property, and workers’ compensation.
Food trucks are famous for start-up business ventures these days, offering professional chefs, at-home cooks, investors, and entrepreneurs the opportunity to grow their mobile businesses. As a food truck owner, though, serving delicious food is not your only responsibility.
- Food Truck Requirements
- What insurance coverage is required for a food truck in Wisconsin?
- What insurance coverage is required for a food truck in Washington, D.C.?
- What insurance coverage is required for a food truck in Pennsylvania?
- What insurance coverage is required for a food truck in Texas?
- What insurance coverage is required for a food truck in North Carolina?
- What insurance coverage is required for a food truck in Ohio?
- What insurance coverage is required for a food truck in Montana?
- What insurance coverage is required for a food truck in California?
- What insurance coverage is required for a food truck in Connecticut?
- What insurance coverage is required for a food truck in Florida?
- What insurance coverage is required for a food truck in Georgia?
Company | Rank | See Pros/Cons | Maximum Multi-Policy Discount | Maximum Low-Mileage Discount | Best For |
---|---|---|---|---|---|
#1 | Progressive | Up to 10% | 5% - 10% | Online Convenience | |
#2 | Farmers | Up to 20% | 5% - 15% | Local Agents | |
#3 | State Farm | Up to 17% | 5% - 10% | Many Discounts | |
#4 | Allstate | Up to 25% | Up to 30% | Add-on Coverages | |
#5 | Nationwide | Up to 20% | 5% - 15% | Usage Discount | |
#6 | Travelers | Up to 8% | 5% - 10% | Accident Forgiveness | |
#7 | Hiscox | 5% - 15% | 5% - 10% | Customizable Policies | |
#8 | Hartford | Up to 5% | 5% - 10% | Deductible Reduction | |
#9 | American Family | Up to 29% | 5% - 15% | Student Savings | |
#10 | Erie | Up to 16% | 5% - 10% | 24/7 Support |
Your food truck isn’t just your vehicle, it is your business, and as such, you and your food truck must be adequately protected by having the necessary commercial car insurance in place. Since most states require car insurance, it should be no surprise that your food truck must have a current car policy in place so your mobile business can remain mobile.
However, having the proper commercial car insurance for your food truck to drive around town is one of many coverages you will need. As the owner of your food truck business, you want to make sure that you have the right combination of policies in place to cover the business aspect of your food truck business.
Keep reading to learn more about food trucks, the types of insurance coverage you will need, and the potential cost to you as a food truck owner.
#1 – Progressive: Online Convenience
Progressive, with its online convenience and budget-friendly rates, stands out as the top choice for food truck insurance, ensuring optimal coverage and peace of mind for mobile business owners.
Brad Larson Licensed Insurance Agent
Pros
- Online convenience: Progressive excels with its user-friendly online platform, providing seamless policy management.
- Competitive multi-policy discount: Offers up to 10% discount for bundling policies.
- Versatile coverage options: Progressive provides a variety of coverage options tailored to food truck business needs.
Cons
- Limited local presence: Face-to-face interactions with local agents might be limited.
- Moderate low-mileage discount: The low-mileage discount is not as generous as some competitors.
Read more: Progressive Car Insurance Review
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#2 – Farmers: Local Agents
Pros
- Local agents: Farmers distinguishes itself with a network of local agents, ensuring personalized service.
- High maximum multi-policy discount: Offers an impressive 20% multi-policy discount.
- Specialized add-on coverages: Farmers provides additional coverages catering to specific needs of food truck owners.
Cons
- Online limitations: Online policy management might not be as comprehensive.
- Moderate low-mileage discount: The low-mileage discount could be more competitive.
Read more: Farmers Car Insurance Review
#3 – State Farm: Many Discounts
Pros
- Diverse discounts: State Farm stands out with various discounts, allowing for maximum savings.
- Competitive Multi-policy discount: Offers up to 17% discount for bundling policies.
- Customizable policies: State Farm provides flexibility in tailoring policies to unique requirements.
Cons
- Limited online presence: Online tools may not be as robust as some competitors.
- Average low-mileage discount: The low-mileage discount is decent but may not be as high as with other insurers.
Read more: State Farm Car Insurance Review
#4 – Allstate: Add-on Coverages
Pros
- Generous multi-policy discount: Allstate offers up to 25% discount for bundling policies.
- High low-mileage discount: The potential 30% low-mileage discount is among the industry’s best.
- Comprehensive add-on coverages: Allstate provides a range of add-on coverages catering to specific needs.
Cons
- Premium costs: While discounts are available, Allstate’s base premiums may be relatively higher.
- Online tools complexity: Some users find Allstate’s online tools to be less intuitive.
Read more: Allstate Car Insurance Review
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#5 – Nationwide: Usage Discount
Pros
- Usage discount: Nationwide stands out with a usage discount, rewarding food truck owners for lower mileage.
- Multi-policy discount: Offers up to 20% discount for bundling policies.
- Local agent network: Nationwide provides access to local agents for personalized service.
Cons
- Limited maximum multi-policy discount: The maximum multi-policy discount is lower compared to some competitors.
- Moderate low-mileage discount: The low-mileage discount is competitive but not the highest available.
#6 – Travelers: Accident Forgiveness
Pros
- Accident forgiveness: Travelers offers accident forgiveness, providing a safety net for food truck owners.
- Multi-policy discount: Provides up to 8% discount for bundling policies.
- Strong financial stability: Travelers boasts financial stability, ensuring reliable coverage.
Cons
- Limited maximum multi-policy discount: The multi-policy discount is lower compared to some competitors.
- Usage discount absence: Does not provide a specific usage discount.
Read more: Travelers Car Insurance Review
#7 – Hiscox: Customizable Policies
Pros
- Customizable policies: Hiscox allows for highly customizable policies, catering to the unique needs of food truck businesses.
- Competitive discounts: Offers a range of discounts, including 5%-15% for multi-policy, providing potential cost savings.
- Financial stability: Hiscox is known for its financial stability, ensuring reliability in coverage.
Cons
- Limited industry focus: Hiscox’s primary focus is not exclusively on food truck insurance.
- Usage discount absence: Does not provide a specific usage discount.
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#8 – Hartford: Deductible Reduction
Pros
- Deductible reduction: This stands out with a deductible reduction feature, potentially lowering out-of-pocket costs for food truck owners.
- Local agent support: Provides access to local agents for personalized assistance and guidance.
- Financial stability: Hartford boasts financial stability, ensuring reliable and secure coverage for food truck businesses.
Cons
- Lower multi-policy discount: Offers up to 5% discount for bundling policies.
- Online tools limitations: Online tools may not be as comprehensive as some competitors.
#9 – American Family: Student Savings
Pros
- Impressive multi-policy discount: American Family offers up to 29% discount for bundling policies.
- Student savings: Stands out with a unique student savings discount, beneficial for food truck owners in education.
- Usage discount options: Provides a range of discounts, including 5%-15% for multi-policy and customizable options.
Cons
- Limited industry focus: American Family’s primary focus may not be exclusively on food truck insurance.
- Online limitations: Online tools may not be as comprehensive as some competitors.
Read more: American Family Car Insurance Review
#10 – Erie: 24/7 Support
Pros
- Reliable 24/7 support: Erie emphasizes customer support with 24/7 availability, ensuring assistance whenever needed.
- Multi-policy discount: Offers up to 16% discount for bundling policies.
- Financial stability: Erie boasts financial stability, ensuring reliable coverage for food truck owners.
Cons
- Limited maximum multi-policy discount: The multi-policy discount is lower compared to some competitors.
- Usage discount absence: Does not provide a specific usage discount.
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Understanding Food Truck Insurance
This table offers a comprehensive overview of the average monthly auto insurance rates for food trucks, delineating both minimum coverage and full coverage options. As entrepreneurs in the mobile food industry seek to safeguard their businesses on wheels, this comparative analysis provides valuable insights into the cost considerations and coverage offerings from various insurance companies.
Insurance Company | Minimum Coverage | Full Coverage |
---|---|---|
Progressive | $41 | $120 |
Farmers | $38 | $110 |
State Farm | $50 | $155 |
Allstate | $68 | $198 |
Nationwide | $53 | $145 |
Travelers | $35 | $85 |
Hiscox | $80 | $205 |
Hartford | $42 | $118 |
American Family | $72 | $185 |
Erie | $49 | $135 |
For minimum coverage, Travelers emerges as the most cost-effective option with a monthly rate of $35, while Hiscox presents the highest rate at $80. When considering full coverage, Travelers maintains its affordability with a rate of $85 per month, while Hiscox again leads with the highest cost at $205.
Progressive, Farmers, State Farm, and Nationwide present consistent rates for both minimum and full coverage, positioning them as potential choices for food truck operators seeking a balance between cost and comprehensive protection.
The data underscores the importance of tailored insurance solutions for the mobile food industry, allowing entrepreneurs to make informed decisions based on their unique operational needs and budget considerations.
Available Insurance Types for Food Truck Owners
Now that you have successfully launched your food truck business, it is time for you to find the types of insurance policies you will need.
While it’s true that there is no “food truck car insurance” company, per se, most insurance providers will offer the various policies that a food truck owner needs. Let’s see how much insurance you need.
While each state may have its own requirements for insuring your food truck, here’s a list of the essential insurance policies you will need for your food truck.
- Commercial car insurance
- Commercial property insurance
- General liability insurance
- Workers’ compensation insurance
With one of these policies, in conjunction with the others, your food truck will not be adequately insured. Find out what insurance coverage is required for a food truck in North Carolina.
Commercial Car Insurance
Since your personal vehicle is now used for business purposes, your vehicle must be covered under a commercial car policy. Commercial car insurance protects your vehicle in the line business, whether delivering food, parking and serving food, transporting employees, or driving to work locations.
A commercial car policy often covers:
- Liability (if you or an employee causes an injury while operating the vehicle)
- Medical payments if anyone is injured
- Coverage against uninsured drivers
- Physical damage to company vehicles
Learn more about personal injury protection coverage. These coverages, however, are only enough when bundling them with other insurance policies.
General Liability Insurance
As a mobile restaurant, you risk being liable for causing personal harm to your customers, not just other vehicles. For example, suppose a customer is rendered ill with food poisoning from what you served out of your food truck. As the business owner, you would be held liable. On another occasion, let us suppose you or an employee backs your food truck into something and causes damage on someone else’s property. In this case, you could also be held liable.
This policy covers
- Physical injury: If an employee or your food truck injures a customer.
- Property damage: If your food truck damages nearby buildings or vehicles.
- Food poisoning: If a customer claims your food was the source of their illness.
These are just a few reasons why having general liability insurance is so important.
Read more: car accidents
Commercial Property Insurance
No food truck is complete, nor can it conduct business, without the equipment needed to serve your delicious, handheld meals. With the cooking equipment and utensils proving invaluable to your business’s success, it is only logical to protect these assets. Fortunately, commercial property insurance will cover anything you use for your business that isn’t attached to the vehicle, from pots, pans, and stoves, to unforeseen events like fires, floods, theft, and more.
Workers’ Compensation
You won’t need workers’ compensation if you work in your food truck daily and have no plans to hire employees.
Suppose you have a few employees. In that case, whether full-time or part-time, it is essential to remember that your employees are not covered under your general liability insurance because they are a part of your business operations.
With workers’ compensation, if an employee is injured while on the clock, this policy will pay for their medical expenses and lost wages. This coverage is required in most states and is essential in protecting your business from lawsuits filed by injured employees.
Factors That Affect the Cost of Insurance for Business Vehicles
The process of choosing your insurance carrier can be overwhelming. Several factors go into selecting not just the best insurance for your business vehicles but the best commercial car insurance company for your business vehicles at the best prices.
Due to the nature of the business, food truck insurance can be costly because of the multiple policies necessary to operate your business correctly. Many factors can affect the insurance cost for business vehicles, including location, property value, payroll (if you have employees), the coverage limits you choose, your deductibles, and the actual cash value of your property and equipment. Learn more about collision and comprehensive coverage.
Many factors will determine the cost of your business vehicle insurance that overlap with your primary car insurance risks, including
- Vehicle: What’s your vehicle’s year, make, and model? Calculate how much your car might cost you.
- Drivers: How many people drive your vehicle? More drivers equal more risk.
- Driving record: Are you a high-risk driver? Tickets and claims can affect premiums. Learn how to compare car insurance rates with a bad driving record.
- Mileage: How many miles a day do you drive? Lower mileage can save you money.
These are a few elements that can determine how much your insurance policy will cost. There may still be other factors that will affect the cost of your coverage. Find out whether car insurance can be paid monthly.
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Tips for Finding the Best Policy for a Food Truck Business
First, it is essential to remember that no matter how much insurance coverage for food trucks you get, it is vital that you find the best companies to insure your business vehicle. Start with companies offering discounts for bundling all your policies, and go from there.
Most big-name insurance companies offer the commercial insurance you’ll need for your food truck. Each company, however, still has its own rates, discounts, and eligibility requirements. To find the best commercial car insurance quote, you should start by comparing companies.
While there are no set prices for food truck insurance, it is essential that you, as a food truck owner, do your research and start putting together a financial plan to calculate the median cost of the policies you will need.
Read More:
- What insurance coverage is required for a food truck in California?
- What insurance coverage is required for a food truck in Connecticut?
- What insurance coverage is required for a food truck in Florida?
- What insurance coverage is required for a food truck in Georgia?
- What insurance coverage is required for a food truck in Montana?
- What insurance coverage is required for a food truck in North Carolina?
- What insurance coverage is required for a food truck in Ohio?
- What insurance coverage is required for a food truck in Pennsylvania?
- What insurance coverage is required for a food truck in Texas?
- What insurance coverage is required for a food truck in Washington, D.C.?
- What insurance coverage is required for a food truck in Wisconsin?
Case Studies: Insights From the Road- Food Truck Car Insurance
Case Study One: Thriving on the Road With Progressive
Meet Sarah, the proud owner of “Tasty Travels,” a popular food truck known for its gourmet tacos. Seeking reliable insurance, Sarah chose Progressive for its online convenience and budget-friendly rates.
With a monthly rate of $41 and an annual cost of $120, Progressive provides the coverage needed to protect her business on the move. Progressive’s user-friendly platform allows Sarah to manage her policy efficiently, giving her peace of mind as she serves delectable delights to her loyal customers.
Case Study Two: Local Flavor Secured With Farmers
John, the owner of “Local Bites on Wheels,” opted for Farmers as his go-to insurance provider. With a monthly rate of $38 and an annual cost of $110, Farmers’ local agents provided personalized assistance, understanding the unique risks of his food truck business.
John appreciates the hands-on approach, as Farmers’ agents are readily available to address his concerns. This local touch ensures that “Local Bites on Wheels” remains a community favorite with the backing of comprehensive insurance coverage.
Case Study Three: State Farm’s Discounts Fueling Success
Jessica, a culinary entrepreneur running “Flavor Fusion,” found a valuable partner in State Farm for her food truck insurance needs. With a monthly rate of $50 and an annual cost of $155, State Farm’s many discounts played a crucial role in keeping Jessica’s operational costs in check.
State Farm’s commitment to offering discounts tailored to her business, combined with their comprehensive coverage, has allowed “Flavor Fusion” to thrive in the competitive food truck landscape.
The Bottom Line: Key Points to Remember When Insuring Your Food Truck
Here are a few critical pieces of information to keep in mind when insuring your food truck:
- A food truck is both a vehicle and a business.
- As a business, you will need multiple policies to protect your food truck adequately.
- General liability, commercial property insurance, a commercial car policy, and workers’ compensation are the central policies needed to get your business up and running.
- You can find the best rates by shopping around for multiple insurance carriers and researching which companies offer discounts for bundling multiple policies.
Now it’s time to get your business up and running and get your food truck on the road.
Frequently Asked Questions
What types of coverage do I need for my food truck business?
For comprehensive protection, consider a combination of coverage, including Commercial Car Insurance for your vehicle, General Liability Insurance for accidents and injuries, Commercial Property Insurance for equipment and inventory, and Workers’ Compensation if you have employees. Each of these policies ensures your food truck is adequately covered on and off the road.
How can I find the best insurance policy for my food truck business?
Start by comparing insurance providers that offer discounts for bundling policies. Look for reputable companies like Progressive, Farmers, and State Farm, and analyze their rates and coverage options. Customizing your coverage based on your specific needs and budget is key to finding the best insurance policy for your food
Can I use my personal auto insurance for my food truck?
Personal auto insurance typically excludes coverage for commercial activities like operating a food truck. To ensure proper coverage, it’s crucial to obtain separate Commercial Auto Insurance specifically tailored for your food truck business. This ensures that your unique risks and business activities are adequately protected.
How do I determine the cost of insurance for my food truck?
Several factors contribute to the cost of food truck insurance, including location, property value, payroll (if you have employees), coverage limits, deductibles, and the actual cash value of your property and equipment. It’s essential to work closely with insurance providers to customize coverage that suits your business needs while considering your budget.
What are the liabilities for a food truck owner?
As a food truck owner, you are liable for injuries, illnesses, or damages that occur due to your business operations. For example, if a customer gets sick from your food or if someone is injured on your premises, you could be held responsible. General Liability Insurance helps cover these liabilities, protecting your business from potential legal and financial consequences.
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Enter your ZIP code below to view companies that have cheap car insurance rates.
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Dani Best
Licensed Insurance Producer
Dani Best has been a licensed insurance producer for nearly 10 years. Dani began her insurance career in a sales role with State Farm in 2014. During her time in sales, she graduated with her Bachelors in Psychology from Capella University and is currently earning her Masters in Marriage and Family Therapy. Since 2014, Dani has held and maintains licenses in Life, Disability, Property, and Casualt...
Licensed Insurance Producer
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.