How Much Does NEMT Insurance Cost?

08/27/2021

Last updated: 11/21/2023

3 mins read

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If you’re thinking about starting an NEMT company, it’s time to get serious about insurance costs. Just as you need insurance coverage to drive your own personal vehicle, you also need it to cover your NEMT fleet and drivers before they hit the road. Pricing is different for everyone and depends on a number of factors, which we’ve listed below.

Number of Vehicles and Drivers

The more vehicles and staff you have, the higher your insurance rates will be and vice versa. Every driver and vehicle has to have insurance coverage to be on the road, and if you have a bigger fleet, insurance companies view you as a greater liability.

Vehicle Models

The make and model of a vehicle impacts the insurance cost. For instance, if you’re operating an NEMT business, you’re going to see higher prices for wheelchair and stretcher vans, since they carry a greater risk of passenger injury. They are assessed as having a greater risk, because there’s a chance that the wheelchair and stretcher aren’t properly secured every time.

Location

nemt Location

Where your business is located greatly impacts insurance costs. If you’re located in a big city, there’s a greater risk of accidents based on traffic, pedestrians, public transportation, bikers, and more. If you’re in a rural or suburban area, your insurance will probably be a little lower, since there are fewer drivers on the road.

Driver Track Record

If your drivers all have clean records, you’ll be in good shape for an affordable insurance cost. But the moment even just one driver has an accident on their record, your prices will rise. Insurance companies will also look at your business as a whole, paying attention to how your drivers perform each year and adjusting prices based on results.

Driver Training

Regular driver training courses can be a great way to improve insurance costs at your company. Some insurance providers may even recommend specific courses tied to benefits for completing them. Taking these courses will not only help your bottom line, but also equip you with a more qualified team of drivers.

Plan Trips With Transportation Routing Software

Insurance premiums for NEMT vehicles can differ based on several variables. On average, annual insurance costs per vehicle with a $1,000,000 liability limit are influenced by geographical location:

In rural areas, the cost is approximately $3,500.
For suburban locations, it's around $4,500.
Urban settings see a typical cost of $5,500.
In major metropolitan regions like New York City, Washington D.C., and Northern Virginia, the expense averages at $7,500.

Nothing will help your business overall more than non-emergency medical transportation software. Schedule, route, dispatch, and bill every trip with ease when you switch to a software solution. Get in touch with RouteGenie today to schedule a free demo of our software!