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 that you make an informed decision and don't make mistakes here.
Before we jump into the nitty-gritty of NEMT insurance, it's good to know what does 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:
➢ Commercial Auto Liability
➢ General Liability
➢ Worker’s Compensation
➢ Assault and Battery Liability
➢ Hired & Non-Owned Liability
In 2021, full coverage for vehicle insurance annually for a driver with a reputable driving history and a good credit record was $1,425.
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 basically 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 they will charge more and vice versa.
The location where you operate your business is crucial in determining your NEMT insurance cost. Every state has its own local rules and regulations for the NEMT industry.
If you are operating in a big and busy city where there is more risk involved in driving, your insurance cost will be higher; conversely, if you decide to work in a small-town cost will be low.
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 that 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. carry a higher insurance cost because these vehicles contain sensitive equipment that can be damaged easily.
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.
Getting your drivers professionally trained doesn't only cut your NEMT insurance cost but also assists you in being better at what you do and enhances your brand reputation.
You can have your drivers trained for dealing with emergencies, patient safety, vehicle, and medical equipment management, and so on.
This reduces the risk of mismanagement and accidents and helps you establish your organization as safe and professional, which impresses insurance companies.
While considering you, insurance companies will look at your overall experience in the NEMT industry. If you have considerable experience as a NEMT provider, it will impact the insurance cost positively.
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:
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.
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 every employee follows them.
Getting your NEMT business insured will cost you a large sum, and it's easy to get confused while figuring out how to cut your insurance cost. However, acquiring relevant knowledge and using modern solutions like NEMT Software will help you do this task easily.
