Non-emergency medical transportation auto insurance commonly known as NEMT insurance is important for companies to find and maintain the right amount of insurance to make sure your business, employees and customers are all protected without breaking the bank.
So first – what is NEMT insurance? NEMT Insurance refers to the minimum requirements for commercial auto insurance to first meet state minimums for transporting passengers. Oftentimes NEMT brokers are required to have more than the minimum liability coverage to work for them.
Second – how does pricing for NEMT insurance work?
Insurance rates are all about evaluating risk. How likely is your organization to make an insurance claim? What is the likely severity of the claim? How are those risks multiplied across the number of personnel and vehicles that make up your organization? Once these and other parameters are established, a pricing structure comes into play that weighs risk factors and correlates them with a monetary value.
The various risk factors for a NEMT provider can generally be divided into these categories: direct factors, number of vehicles/personnel, types of vehicles, location, historical factors, experience level, driving record, forward-looking factors, vehicle maintenance and training.
Direct factors for NEMT insurance are those with the most set in stone rate structure. Number of vehicles/personnel have a large role in your rate because the more vehicles in your fleet, the higher your insurance rates will be. Also, the amount of people you employ will also be factored into the rate.
The types of vehicles you are having insured will also play a large role in your insurance rate. For example, ambulatory vehicles, wheelchair vehicles and stretcher vehicles each have different types of risks. For example, stretcher and wheelchair vehicles have a greater risk of a passenger being injured if in an accident so the insurance rates will be higher on these types of vehicles. The greater the risk the higher your insurance rate will be.
Location factors into NEMT insurance rates, just like on your personal auto insurance. Each state and counties have their own laws and regulations when it comes to insurance requirements. They take into account different geographic concerns, such as the region’s physical attributes and drivers dangers. Just like personal auto insurance – the same vehicle, same person and same insurance provider could be different in one area of the country versus another.
Historical factors refers to drivers past records. The history of your staff’s driving records play a huge role in evaluating your company’s risk and setting insurance rates. Essentially you have control over these factors.
The experience level of the owner of the company will impact the NEMT insurance rates. If the company has had a proven record of running a safe transportation company then that will help the insurance rates to go down. For a new business just starting off, since they don’t have a record yet the risk is greater for the insurance companies so the rates will be higher. Also, if a long standing NEMT company has a poor record, the insurance rates will rise.
Driving records play a large factor in NEMT insurance rates. Each and every driver you employ will have their driving records evaluated thoroughly by the insurance company. A clean driving record will lead to lower rates while past accidents or incidents will cause rates to rise. Anything from a speeding ticket, moving violations, and accidents will be factored in.
Direct factors and historical factors are analyzed by the insurance company to gauge the likelihood that an insurance claim will be made in the future. NEMT insurance providers take a careful look at forward-looking factors evaluating the likelihood of future risks. If future risks are high, insurance rates will be higher.
Vehicle maintenance is huge. If you have a good fleet of vehicles that are well-maintained they are less likely to be involved in accidents due to the safety and performance of the vehicle. Just like with personal insurance this is why new vehicles typically cost less to insure than pre-owned vehicles. By keeping up with your company’s vehicle maintenance program and taking the correct steps to ensure strong commitment to that program shows NEMT providers that you are committed to safe vehicle operators for years to come. This lessens your future risk and shows the provider that future claims are less likely. The lower the risk for future claims, the insurance rates will go down.
Continuous training for your employees is factored into NEMT insurance. There is a wide variety of training courses that can better prepare your drivers to help avoid different situations. For example, by taking part in different training sessions it will help your staff know how to take the correct steps to secure a wheelchair in the vehicle before driving or by taking a defensive driving course, they will have a better understanding on how to deal with unexpected things that occur on the road. Demonstrating these completed training courses to the insurance providers will help bring down your rates.
There are a lot of factors and components that go into NEMT insurance costs – some that you can control and some that you cannot. Our team here at Professional Insurance Strategies know the ins and outs of NEMT insurance and will make sure you have the best coverage at the best rate possible. Please contact us today to learn more or to receive a quote!