How to keep NEMT insurance costs low
Anyone who owns a vehicle knows that insurance is a necessity before you hit the road. The same is true when you own a non-emergency medical transportation company. Insurance can be a big expense, so it’s important to understand where those numbers come from, and when you have control over them. We broke down insurance costs below.
What factors directly impact insurance cost?
There are a handful of factors that impact your cost, and these prices are typically set in stone. You don’t have a ton of control over these factors, but it’s important to understand them and how they fit into your overall price.
Number of vehicles and drivers
This one’s quite simple. The more vehicles and drivers you have, the more you pay in insurance, since more vehicles on the road means a greater risk for an accident. If you’re just starting out, you probably only have a few vehicles, so you can start with small payments and evaluate how much more you can afford as you grow.
Types of vehicles
Ambulatory, wheelchair, and stretcher vehicles all vary in insurance cost. Your fleet will probably consist of a mix of these vehicles, and each will come with a slightly different price tag based on risk.
Location
Nearly everything is impacted by a location. If you’re in a big city, you tend to pay more for just about anything, and if you’re in a rural area, it’s typically the opposite. Many cities and states have their own laws when it comes to insurance, so looking into your local regulations beforehand is a good way to be prepared.
Experience
Length of time in the business is going to impact insurance costs. If a company has operated for years without incident, their cost will be lower than a company who has only operated for a year or less.
Driving record
Anyone looking to become an NEMT driver will have their driving record checked before employment. If a driver has previously been in accidents or gotten tickets, they’ll have a harder time landing the job, because they become a liability and will cause higher insurance costs.
Vehicle maintenance
The better you take care of your vehicles, the less likely it is that you’ll be involved in accidents. Taking good care of your vehicles should be top on your priority list to ensure a safe, reliable operation and low insurance costs.
Keep costs low with non-emergency medical transportation software
When you invest in medical dispatch software, you invest in the future of your business. Instead of planning trips manually, software makes it simple to plan a day’s worth of trips in minutes. Ready for your free demo? Get in touch with the team at iSi today!
