News, stories and tips about NEMT Cloud Dispatch software.
How Much does NEMT Insurance Cost
Last updated: 11/07/2024
6 mins read
5/5(2 vote)

How Much does NEMT Insurance Cost?

While starting your NEMT business, getting insured is one of the essential tasks and probably one of the most expensive ones, so it's better for you in the long term to make an informed decision and not make mistakes here.

Before we jump into the nitty-gritty of NEMT insurance and to know how much does NEMT insurance cost, it's good to know what does a Non-emergency Medical Transportation Insurance Policy Covers?

Essential Coverage in NEMT Insurance Policies

Depending on your NEMT insurance agent and Type, your insurance policy will cover various risks or damages, some of which are:

  • General Liability
  • Worker's Compensation
  • Assault and Battery Liability
  • Hired & Non-Owned Liability
  • Non-emergency medical transportation auto insurance

In 2021, full coverage for vehicle insurance annually for a driver with a reputable driving history and a good credit record was $1,425.

The Essential Role of Insurance for NEMT Businesses

Non-emergency medical transportation insurance is vital for businesses. It plays a crucial role in their overall operation. It is a protective shield, ensuring the company is prepared for unexpected challenges; in the NEMT industry, where the transportation of individuals with specific medical needs is paramount, having the right insurance is more important. Insurance for non-emergency medical transportation covers potential vehicle damages and safeguards the business against legal and liability issues.

 In essence, it provides:

  • A safety net.
  • Promoting the stability and resilience of NEMT companies.
  • Contributing to their ability to provide reliable and secure transportation services.

In More Providers can also lower their operational costs by raising NEMT insurance payments. Here you can Read in Detail: How You Can Lower Your Cost with Rising NEMT Insurance Payments

Average NEMT Insurance Costs Per Vehicle

When considering insurance for your Non-Emergency Medical Transportation (NEMT) vehicles, it's crucial to understand that premiums can vary based on several factors. NEMT insurance average cost annual insurance costs per vehicle with a $1,000,000 liability limit are significantly influenced by geographical location:

Geographical Location

Coverage Limit: $1,000,000

Annual Cost Range

Rural Areas



Suburban Locations



Urban Settings



Major Metropolitan Regions



Remember, average costs for NEMT insurance are approximations, and actual costs may vary based on specific circumstances. It's recommended to consult with insurance providers for accurate quotes tailored to your NEMT business.

You can plan your Trips with our NEMT Routing Software. For further information, You May Read: Google Maps Route Planner: Your Ultimate Step-by-Step Guide

Factors Influencing NEMT Insurance Cost

Knowing how NEMT insurance cost is determined and what makes it go up or down, you can easily manipulate those factors to shift the situation to your benefit. Factors affecting NEMT insurance costs are listed below.

Number of Vehicles and Drivers

Insurance is risk assessment; the higher the risk, the higher the price, which means insurance cost will largely depend on the number of vehicles and drivers you have. More vehicles can pose a greater risk to insurance companies, so that they will charge more and vice versa.


The location where you operate your business is crucial in determining your non-emergency medical transportation insurance. Every state has its own local rules and regulations for the NEMT industry.

If you are operating in a big and busy city with more risk involved in driving, your insurance cost will be higher; conversely, if you decide to work in a small town, the cost will be low.

Type of Vehicles

A sports car has a higher insurance cost than an average vehicle or SUV because sports cars are riskier, and the way they are driven, it's more likely they can end up in an accident.

The same is the case with NEMT vehicles, which are comparatively more equipped with patient assistance tools like wheelchairs, stretchers, etc., and carry a higher insurance cost because these vehicles contain sensitive equipment that can be damaged easily.

Usage and Mileage

How you use your NEMT vehicles and the mileage they accumulate are crucial factors in determining insurance costs. The more miles your vehicles cover, especially in high-risk situations, the higher the insurance costs may be.

Driver Credentials

Your NEMT insurance agency will review the past track records of all the drivers you employ. After all, they are the ones who ensure the safety of the vehicles on the road.

If your drivers have a clean record, it won't affect your insurance cost, but if they have a driving record with speeding tickets, accidents, moving tickets, etc., your price will be higher. Likewise, Driver Apps also help drivers maintain their better performance; you may explore them here: Why Do NEMT Drivers Need a Drivers App?

Professional Training

Insurance for non-emergency medical transportation also depends on professional training. Getting your drivers professionally trained not only cuts your NEMT insurance cost but also helps you be better at what you do and enhances your brand reputation.

You can have your drivers trained for emergencies, patient safety, vehicle and medical equipment management, etc. Further, NEMT drivers also need a specific type of insurance. You may read in detail: What Type of Insurance Does a NEMT Driver Need?

Experience Level

While considering you, insurance companies will look at your overall experience in the NEMT industry. Your insurance cost will be positively impacted if you have considerable experience as an NEMT provider.

Strategies to Reduce NEMT Insurance Costs

Now that we have talked about factors that can negatively or positively impact your NEMT insurance cost, it's better if you know how you can be smart about this and cut your insurance cost.

Here are some guidelines for you to follow, so you can reduce your NEMT insurance cost:

Vehicle Maintenance

The more good condition your vehicles are in, the more positive impact it will have on your insurance quotes. You have to keep your inventory well-managed and maintained. NEMT Fleet management software can help you with this.

Another strategic move you can make here is purchasing NEMT vehicles in good condition with excellent safety and security features. These will cost more, but in the long run, they will pay off.

Driver Certifications

Another good strategy is to get your NEMT drivers certified from an industry-leading NEMT certifications program, this will enhance your business's credibility and professionalism both in the eyes of insurance agents and clients, and it will be easy for them to trust you.

Develop Policy Guidelines

One of the most important strategic moves is establishing an organizational culture of professionalism, customer care, and safety.

You do this by setting up rules and regulations and ensuring every employee follows them.

Utilize the Latest Technology

Service providers can utilize fleet operations management technology, such as NEMT Cloud Dispatch software, to significantly enhance trip safety. This software incorporates advanced GPS features that track vehicles in real-time. Transportation companies can monitor their fleet in real-time, enabling quick responses to incidents and emergencies.

Integrating technology like NEMT Cloud Dispatch ensures efficient operations and reduces the overall risk profile, potentially leading to more favorable auto insurance premiums.


Getting your non-emergency medical transportation insurance will cost you a large sum, and it's easy to get confused while figuring out how to cut your insurance cost. By strategically addressing these factors, you can make informed decisions that protect your business and contribute to long-term success.

However, saving on insurance costs and embracing technology like NEMT Cloud Dispatch software for real-time tracking is crucial. Strategic moves, such as establishing policy guidelines, can reduce costs and enhance your business's credibility.

5/5(2 votes)

About the author

Yurii Martynov
Tom Malan

As NEMT Cloud Dispatch Marketing Director, Tom has expertise in NEMT company and performs well in marketing, utilizing different strategies to increase the Nemt Cloud Dispatch business. His dedication extends to offering NEMT providers with advanced software for massive development. Tom is one of the industry's experts and shares his experience with readers through interesting content on home care, medical billing, medical transportation, and marketing.