Customer Type
Transportation Provider
Passenger / Client
Medical Office /
Healthcare Facility
Healthcare Facility
Pharmacy /
Medical Supplier
Medical Supplier
Non-Profit Organization
Broker
Demo video
Pricing
Resources
About us
Sign Up
Your Academy
Demo video
Sign Up
Your Academy
What You Need to Know About NEMT Insurance Before You Hit the Road
Running a non-emergency medical transportation (NEMT) business is about more than just getting from point A to point B. It's about safety, trust, and doing things by the book. And one of the first boxes you need to check? Insurance.
NEMT insurance isn't your everyday auto policy - it’s specialized, often misunderstood, and essential to legally operate. Whether you're just getting started or scaling a mid-sized fleet, understanding how this type of coverage works (and what it costs) can save you a lot of headaches and money down the line.
What Is NEMT Insurance?
At its core, NEMT insurance is commercial auto insurance tailored to vehicles that transport passengers to non-emergency medical appointments. Think dialysis treatments, physical therapy sessions, or regular doctor’s visits.
-
NEMT insurance typically includes:
- Commercial auto liability – Covers damage or injury caused to others in an accident.
- General liability – For incidents that happen outside the vehicle (like helping someone into a wheelchair).
- Passenger liability – Covers injury to your passengers during transit.
- Physical damage – Pays for repairs to your vehicle after a collision or other damage.
- Workers’ compensation – Required in many states if you have employees.
Some policies may also include coverage for abuse and molestation claims, especially if you're dealing with vulnerable populations. Yes, it’s a grim subject—but insurers are thinking three steps ahead, and so should you.
How Much Does NEMT Insurance Cost?
Let’s get straight to the money. On average,NEMT insurance costs between $5,000 and $10,000 per vehicle per year —though that range can stretch depending on a number of factors.
-
Here’s what affects your premium:
- Driver history – Insurers scrutinize your team’s driving records. A clean slate gets better rates.
- Fleet size – More vehicles don’t always mean higher premiums per unit—bulk policies can offer cost savings.
- Location – Rates vary significantly between states and even ZIP codes.
- Claims history – If you've had past insurance claims, expect your rates to climb.
- Passenger volume and services offered – Transporting non-ambulatory patients (like those on stretchers) often increases risk, and therefore cost.
To give you a rough idea, a single-vehicle operator with a clean record might pay closer to $6,000 annually. A larger fleet in a high-risk area? You could be looking at $12,000 or more per vehicle per year.
In rural areas it can be as low as $3,500 per year, while in suburban areas it typically varies between $4,000 and $5,500 per vehicle per year. Operating a larger fleet might offer economies of scale. On the other hand, extending services over a larger area can raise insurance costs due to increased exposure to potential incidents.
How to Save on NEMT Insurance
-
Premiums might seem steep, but there are ways to reduce your costs without compromising safety or legality.
- Bundle your policies – Some insurers offer better rates if you package general liability, commercial auto, and workers' comp together.
- Invest in driver training – A well-trained team reduces accidents, which keeps your premiums lower over time.
- Implement telematics and tracking – Dashcams, GPS, and driver monitoring tools don’t just boost safety—they also prove to insurers that you're serious about reducing risk.
- Shop around, but wisely – Not all insurance providers understand the NEMT space. Stick with those who specialize in it for better rates and coverage that actually fits.
- Keep your records clean – Maintain detailed logs, document everything, and avoid lapses in coverage.
Don't Let Billing and Compliance Slip Through the Cracks
Insurance is just one piece of the NEMT puzzle. If you're serious about protecting your business and staying compliant, accurate billing and record-keeping are non-negotiable. That’s where a good NEMT billing software makes the difference. From trip documentation to claims submission and reporting, the right software ensures you're audit-ready and operating efficiently.
NEMT insurance isn't cheap but it is absolutely necessary. And when you consider the responsibility you carry every time a passenger steps into your vehicle, it makes sense. The key is to know what you’re buying, work with a provider who understands the industry, and put systems in place to minimize risk.
In the NEMT business, cutting corners is risky. Get the right coverage, the right tools, and the right team, and you'll be on your way to build a smarter and more profitable NEMT operation.
Discover flexibility
Discover freedom
Discover DriveBoss
Discover freedom
Discover DriveBoss
Get started