How Much Is Insurance for Starting a Medical Transportation Company


One of the most common questions I receive is how much vehicle insurance costs for a medical transportation company.   Needless to say, there is no one single answer as there is a host of variable that contribute to the cost of vehicle insurance.

First, where you’re located does play a big part in the cost of your premiums.  Like all insurance policies, if you’re located in a higher crime area you are definitely subject to higher premiums.

Next, the amount of coverage you’re seeking will have a direct impact on the cost of premiums.  If your medical transportation company will be servicing Medicaid or Broker contracts then they will typically insist that you carry a higher rate of coverage.  In such circumstances, you will typically find yourself seeking greater liability limits as compared to what you need to service Private Pay clients.

Another important variable that will determine how much you pay for vehicle insurance is your level of experience.  Most insurance underwriters want to see your three year Loss-Run (L/R) Ratio.  Your LR Ration is like a financial report card.  It shows how much you paid in vehicle insurance compared to how much the underwriters paid out in claims.  So, having a good LR Ratio is very important.  The fewer the incidents the more cost effect your insurance premiums!

Now, in talking about Loss Run Ratios another common question is regarding what if you’re a newer business with less than three years.  Yes, you can still get insured but typically, as can be expected, you can find yourself paying a little more.  I know that’s not what any new entrepreneur wants to hear.  But it’s the nature of the beast and you have to look at it from the underwriter’s perspective.  Until you’ve proven yourself to be reliable in paying, you’ve proven to have a good safety program that properly trains and educates your drivers so that you limit your accidents, you really are a risk!  Again, I know that’s not great news for new entrepreneurs just starting out.  But it goes with the territory.

Another obvious factor determining how much you pay in premiums is the number of vehicles you are insuring.  The more vehicles you have, the greater the total volume you pay.  However, if you do have a good Loss-Run Ratio you the more vehicles you are insuring the less you could be paying per vehicle as compared to if you were insuring a few vehicles.

Because the cost of vehicle insurance is a common question, I am very pleased to share with all of you that there is strength in numbers.  More specifically, with the United Medical Transportation Providers Group we have the distinct ability to dramatically reduce member’s insurance premiums.  Over the last several months the UMTPG has been working closely with select brokers and underwriters to develop a discounted plan exclusively for UMTPG members.  To say that this is a great opportunity is an understatement.  In fact, this is a ground-breaking opportunity that is literally going to revolutionize the “bottom line” for NEMT owners around the country!

If you haven’t yet joined the UMTPG Newsletter, I encourage you to visit us at www.umtpg.org and join so that you can stay abreast of the latest news and info regarding this revolutionary insurance opportunity amoung other opportunities.

Also, our lead insurance broker is going to be joining us for my MDT Boot Camp coming up on the weekend of August 5th & 6th.  If you haven’t yet reserved your seat for the MDT Boot Camp, Click Here to learn more and to make your reservations.