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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 know how much NEMT insurance costs, it's good to know what a Non-emergency Medical Transportation Insurance Policy Covers.
Depending on your NEMT insurance agent and type, your insurance policy will cover various risks or damages, some of which are:
In 2021, full coverage for vehicle insurance annually for a driver with a reputable driving history and a good credit record was $1,425.
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:
More providers can also lower their operational costs by increasing NEMT insurance payments. Here you can read in detail: How You Can Lower Your Cost with Rising NEMT Insurance Payments
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 |
Yes |
$3,500 |
|
Suburban Locations |
Yes |
$4,500 |
|
Urban Settings |
Yes |
$5,500 |
|
Major Metropolitan Regions |
Yes |
$7,500 |
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
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.
Insurance is risk assessment; the higher the risk, the higher the price. This means insurance costs will largely depend on the number of vehicles and drivers you have. More vehicles can pose a greater risk to insurance companies, so 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.
A sports car has a higher insurance cost than an average vehicle or SUV because they are riskier. The way they are driven makes them more likely to end up in an accident.
The same is true for NEMT vehicles, which are comparatively more equipped with patient assistance tools like wheelchairs, stretchers, etc., and carry a higher insurance cost because they contain sensitive equipment that can be damaged easily.
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.
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?
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?
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.
Now that we have discussed factors that can negatively or positively impact your NEMT insurance cost, it's better to know how you can be smart about this and cut your insurance cost.
Here are some guidelines for you to follow so that you can reduce your NEMT insurance cost:
The better condition your vehicles are in, the more positive impact they 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 that are in good condition and have excellent safety and security features. These will cost more, but in the long run, they will pay off.
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.
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 employees follow them.
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 favourable 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, it is crucial to save on insurance costs and embrace technology like NEMT Cloud Dispatch software for real-time tracking. Strategic moves, such as establishing policy guidelines, can reduce costs and enhance your business's credibility.
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About the author
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.
NEMT Cloud Dispatch is a featured product of Hybrid IT Services, Inc specifically designed and tailored according to the requirements of non-emergency medical transportation.
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