Why Fleet Insurance Scores Are Important to Your Fleet

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Auto insurance scores are not a common topic among fleets, largely because many fleets don’t understand how these scores can impact their business. In addition, many fleets confuse insurance scores with CSA scores. They’re related, and calculated using similar information, but they are different and have alternate impacts on your fleet. Considering all that fleet managers have to focus on, an insurance score may seem like a minor concern—but it shouldn’t be.

One of the most important tasks asked of a fleet manager is to reduce costs. Insurance costs can be great for fleets, especially those with a larger number of accidents, inspections, and poor credit history. Do all that you can to reduce your insurance costs by arming yourself with insurance score knowledge and tips to increase them.

What Is an Insurance Score?

An insurance score, or insurance credit score, is a rating that insurance companies use to determine the probability of a claim from the individual or company. It utilizes a statistical model to determine the values of these scores, assigning positives and negatives to details in your credit report. It’s very similar to an individual credit score in that regard. The difference is that insurance companies have their own scoring models and data. This model is focused more on the likelihood of an accident and claim.

The insurance score range is 200 to 997. The higher the score the better, and anything over 770 is favorable—much like a typical insurance score. A higher score results in lower insurance premiums. This is quite different from CSA scores, in which a lower score is better and results in lower premiums for fleet insurance.

How are Insurance Scores Calculated?

An auto insurance score is determined by a number of factors, your credit report being the main component. In essence, insurance companies use your credit reports to create scores like credit reporting agencies do. However, they have their own scoring method.

When calculating scores, insurance companies do not measure your ability to pay back a loan. Instead they replace that factor with the likelihood of a claim. They also may use some of the same data as reporting agencies, such as your total debt and the types of credit that a business has in use. Other factors and data that play into insurance score calculations include:

  • Long established credit history
  • Numerous open accounts in good standing
  • No late payments
  • No past due accounts
  • Low use of available credit
  • Collection accounts
  • Driver behavior
  • Local factors such as traffic congestion and weather conditions
  • Historic accident risk

How To Look Up Insurance Scores

The metrics insurance companies use vary from state to state and each company has their own nuances when calculating scores. Therefore, it can be difficult to know your insurance score at any given time. However, you may be able to find these scores on traditional reporting sites such as Experian, Equifax, and even Credit Karma. TransUnion also has an easy-to-read section that specifically lists auto insurance scores. You can also use technological solutions, such as fleet management software, that integrates with your insurance plan. It not only monitors driver behavior to reduce instances that increase premiums, but it also creates individual driver scores and overall insurance risk scores.

Why are Insurance Scores Used to Calculate Premiums?

It might seem strange to consider credit reports when determining insurance premiums and risk of claim. This seems even more bizarre when you take into consideration the number of factors that play into accident risk: safety policies, maintenance, driving conditions, and driver behavior. While all of those factors (and more) are used to calculate premiums, there is a real and comprehensive reason insurance companies use insurance scores in their calculations. There are actuarial studies that prove the financial affairs of a company or individual are good indicators of claim risk.

The Difference Between CSA Scores and Insurance Scores

While insurance companies use both CSA scores and insurance scores to calculate premiums, they are two very different things. We’ve mentioned that insurance scores use your credit report and an algorithm determined by the insurance company. A CSA score isn’t based on your credit at all. In fact, it has much more to do with your driving and inspection history.

A CSA stands for compliance, safety, and accountability. A low CSA score means that your fleet has had fewer accidents, fewer inspection violations, and maintains vehicles to safety standards. This score plays into your ability to attract clients since they will use this score to determine whether or not they want to work with your company. It’s also used by the DOT (Department of Transportation) to determine whether or not your fleet needs to be monitored more closely. Insurance companies also use these scores to determine risk, but the score is not specifically designed for insurance uses.

When fleets work towards improving their fleet and driver safety, they do it for a number of reasons. It may be to reduce costs—either maintenance, insurance, or otherwise. It may be to reduce employee turnover and to help drivers feel safe on the job. It may be to improve CSA scores to help attract more customers and improve the company’s reputation. But it’s often not for the purposes of improving an insurance score. It’s a commonly overlooked factor in the calculation of insurance costs. Luckily, improving driver behavior, maintenance, and inspections can impact your insurance scores. However, if you’re forgetting to look into ways to improve your credit score, then you are surely missing an opportunity to reduce your insurance costs. If you are not focusing on your fleet insurance score, you’re not fully grasping all that your insurance takes into account.

How to Improve Your Fleet Insurance Score

Just like your credit score, your insurance score is not permanent. It’s a continuously updated score that considers multiple factors, which can be improved. This can largely be done by improving your credit report and includes:

  • Reducing debt
  • Paying bills on time
  • Reducing credit utilization
  • Increasing credit history

You should avoid maxing out your credit cards, and try to limit the number of insurance claims you file. Of course, doing so depends on your ability to increase safety and decrease accidents. Increasing your insurance score is about creating a good behavioral record on top of a good financial standing. To accomplish both, consider the following:

Get your credit report

The first thing you need to do is to get a copy of your credit reports from each reporting bureau. It’s recommended that you get a report from each rather than just one because one report may have different information. This is because certain companies report only to one or two credit bureaus and not the other(s). By checking your report, you can identify all of the negatives that are impacting your score. You’re able to get one free credit report each year, or you can use services such as Mint or Credit Karma to keep track of your reports throughout the year.

Certain negatives can be disputed and potentially removed from your credit report. Other disputes will impact your credit less with each passing month and eventually fall off of your record.

Take action

Knowing what’s on your credit report helps to identify what needs to be fixed and gives you a goal to work towards with specific actions to reach these goals. This may include ensuring payments are made on time, paying down credit, and reducing credit usage. You should also make behavioral changes like reducing speeding, hard braking, and other aggressive maneuvers. Insurance companies don’t just rely on your credit history to calculate scores, they use driving records as well. You can use telematics systems to monitor driver behavior and improve training and safety of your fleet.

Driver score

Implementing a driver score algorithm and integrating it with your insurance plan can help you lower insurance premiums. It calculates a daily driver score for each individual based on their driver behavior. These scores are compiled and averaged to create a risk score, which insurance companies use to calculate premiums. This has the potential for reducing your premiums by encouraging driver safety.

Learn more about insurance scoring, fleet tracking software, and asset tracking at Azuga.

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Fleet Dispatching

Dispatch software is a lifesaver when it comes to organizing your dispatch process and keeping operations streamlined. It offers a variety of features that make daily procedures so much easier, from fleet tracking to reports that help businesses make decisions. What features does dispatch software offer, and how do these features benefit fleets? We will break this down for you. 

Assign and Monitor Jobs

It is easy to assign and monitor jobs with dispatch software because it uses fleet tracking. Fleet tracking allows you to assign jobs to crews in the field. If you need a lead technician for a job, it’s simple to attach that lead tech to any job you need. You can even sort jobs based on their status, whether they’re one-time, recurring, or multi-day, or based on urgency. 

When workers finish jobs, they can mark the job as complete on their end. This way, you can know when each job concludes and when your technician moves on to their next task. 

Easier Communication

Back and forth calls between technicians and managers are no longer a problem. With dispatch software, you simply input the job you want your technicians to address. Your technicians access it from their phones and know what to do from there. When they’re done, they can mark it complete and view their next job right away. They can track their time, update their schedules, and input notes all while on the go. Everything you need to know will be on your screen when you need to know it, no need to track the information down. 

Improve Customer Service

Dispatch software can improve your business’s customer service reputation in a variety of ways. Firstly, GPS tracking allows for route optimization software, which gets your technicians to their destinations quickly and efficiently. No more late technicians making your customers wait. Furthermore, dispatch software allows you to assign technicians to customers they already know, building an improved relationship with your business. And with all of your customer information in one place, it’s easy to respond to disputes and issues in a timely and personal manner. 

All of your client and order information is available in a field service CRM that details everything you need to know about your customers and the jobs you’ve done for them. 

How to Get Dispatch Software

Azuga offers state-of-the-art dispatch software that your business is sure to benefit from every single day. These benefits will improve your fleet’s daily operations, boost customer service, and maximize productivity among your workers. These features and more bring your fleet to its maximum potential, allowing you to focus on making important decisions to help the business grow and thrive. Find out everything you can do with dispatch software by trying out a free demo today. You’re certain to be impressed with the improvements.

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Multi-Drop Route Planning

A multi-drop route planner is a process that plans a route for a driver to make more than two deliveries in multiple locations. It uses vehicle routing software to collect and analyze thousands of data points and determine the best delivery route. This route planning software can plan, re-route, and reschedule without causing any danger to the driver, environment, or business. It considers many factors, such as the number of distribution centers, warehouses, or residential areas a driver has to visit, resource availability, and driver safety. 

How Does Multi-Drop Route Planning Work? 

The route optimization software tracks the vehicle while factoring in when deliveries need to arrive. Of course, a human being should ensure that everything has been planned out properly, but the process should be automatic. Both this person and the system should look at distances, travel time, and fuel consumption. 

Once a route is set, the route optimization software compiles data to choose the best vehicle and driver depending on the delivery. It uses data based on the route and the client’s needs. At this point, it also considers the driver’s hours and weather conditions to determine how much time is needed. These systems need to work in real-time to ensure that managers and clients can connect with up-to-date information. 

Benefits of Multi-Drop Route Planning

There are various benefits to multi-drop route planning. It maximizes productivity, keeps fuel costs low, promotes driver safety, and helps businesses stay compliant with federal driver hour regulations. Your business will save money by using its drivers effectively and not using as much fuel. 

Where to Get Multi-Drop Route Planning Software

If you’re looking for this software, you don’t need to search any further! Azuga’s route optimization software allows for multiple stops. It provides the best routes based on historical data, traffic conditions, weather conditions, and machine learning that helps it create the best routes for you in real-time. See what you can do with route planning software by trying out a demo today!

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Fleet Dispatching

If you manage a fleet, you probably already understand the delicate dance that is fleet dispatching. If not, you may not realize just how crucial this process is to the success of any fleet-based business. 

What Is Fleet Dispatching?

Simply put, fleet dispatching is the process by which commercial fleet drivers are sent out into the field to make deliveries, service customers, and handle other business-related tasks. But it involves so much more than simply telling drivers, “you go there.” Good fleet dispatching may also involve considerations for traffic conditions, road hazards, driver skill sets, customer preferences, and onboard equipment. When done correctly, it’s a skillful juggling act that helps a business reach its daily goals. When poorly handled, it can be a disaster for all concerned.

What Is a Fleet Dispatcher?

A fleet dispatcher is a person in charge of scheduling and arranging dispatch for a commercial fleet. Small fleets may have a single dispatcher to manage all calls, while larger enterprise fleets may employ an entire team. 

A fleet dispatcher must clearly understand schedules and routes, job proficiencies, fuel management, fleet maintenance, and regulations related to hours of service and other fleet compliance issues. A good fleet dispatcher knows the drivers in the fleet well and can anticipate their scheduling needs and which jobs they are most suited to handle. Fleet dispatchers must be masters of communication and have elite organizational skills.

Fleet Dispatch Software from Azuga

Fleet dispatching is as much an art as a science, and it can be overwhelming at times. The best way to support the fleet dispatchers on your team is to give them tools and technology that make the job easier. Fortunately, Azuga offers the answers to all of your fleet dispatching conundrums

Our GPS Fleet Tracking software can keep track of all the vehicles in your fleet along with large equipment and other assets. Dispatchers can use this information to see which vehicles are nearby when a job pops up. What’s more, we offer top-notch route optimization tools to help guide drivers around road construction, accidents, and other hazards that might prevent them from getting to their destination on time. We can even help you schedule routine maintenance, promote road safety, and automatically deliver dispatch notifications to drivers in the field. 

Learn about all the ways Azuga Fleet can help your commercial fleet stay productive and efficient while simplifying maintenance schedules and creating a culture of safety on the road. Schedule an Azuga demo today!

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