Usage Based Insurance

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Introduction

Usage-based insurance (UBI) is an insurance policy that varies its costs based on driver behavior. The insurer inspects data collected by the vehicle and determines what discounts a driver can receive. The more safe behaviors and safety measures a fleet has in place, the better deals they can obtain on their insurance. 

What Do Insurers Measure? 

Insurers obtain their information from a vehicle’s telematics system. The data they are looking for concerns how many miles the car has driven, where it goes, and hard driving behaviors such as rapid acceleration, hard braking, hard cornering, and airbag deployment. This behavioral aspect allows fleets to implement safety measures such as dash cams, GPS tracking, and in-cab coaching to show their insurers that they encourage safe driving. 

Types of Policies

With the growing popularity of UBI, different variations have come out of the woodwork. One of these variations is the Pay As You Drive (PAYD) model, or distance-based insurance, which charges based on how many miles a driver travels. Such a program is not ideal for fleets as they travel many miles every day. However, many people find it perfect for their personal use. Pay As You Go insurance is similar, except drivers pay a fixed rate at the beginning of the year and then a smaller amount based on how many miles they travel. 


Pay How You Drive (PHYD) is a better model for fleets, as it charges based on how safely drivers get from Point A to Point B. Implementing safety features and coaching drivers to engage in safe behaviors is critical. 

Advantages of UBI

The number one advantage of usage-based insurance is that insurers can price premiums more accurately based on what they will be paying out for a driver’s risks. Furthermore, it incentivizes drivers to drive more safely and implement telematics systems for their vehicles. The more cars driving carefully out on the road, the fewer accidents there will be. Both the customer and the insurer will save money. 

When accidents occur, insurers can use a vehicle’s telematics to determine what truly happened at the time of the accident. This data can prevent fraud and help accurately calculate fault and damages to the car or truck. Telematics data is a significant asset to both the insurer and the customer. 

Technologies to Implement

Telematics

Telematics is the critical component in calculating usage-based insurance. It is how a vehicle communicates data to an outside source. All kinds of information can be tracked, including speed, location, fuel efficiency, HoS, and maintenance requirements. Telematics is beneficial for any fleet and is required to remain compliant with federal and state regulations. 

GPS Tracking

GPS Tracking is a part of telematics, but it is crucial to have if a fleet wants usage-based insurance. Knowing a vehicle’s location reveals a lot to an insurer. It shows whether the driver frequents areas of high theft or crime. It also reassures the provider that the vehicle may be recovered if it is stolen. 

Dash Cams

Dash cams are growing in popularity and for a good reason. Not only can they report if a driver is engaging in safe driving behaviors, but they can also serve as an irrefutable eye witness in the event of an accident. Insurers often offer discounts for dash cams since they can exonerate drivers in accidents and save both providers and fleets thousands of dollars every year. 

Conclusion

UBI is an excellent choice for fleets, as long as they are willing to make the investment in equipment that makes their drivers safer. Many fleets have this equipment already, making the transition even more effortless. If you don’t or would like to upgrade, reach out to Azuga. We have the best in telematics and dash cam technology on the market today. As far as your insurance options, most major insurance carriers have some form of UBI, so reach out to your preferred carrier today to discuss your next steps.


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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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Last Mile Delivery

Last mile delivery is the step in delivery when something moves from a transportation hub to its final destination, such as a residence or a retail store. This step must be as quick and efficient as possible to ensure that customers are satisfied, and products move as much as possible. What is last mile delivery, and how can businesses perfect it? 

Steps of Last Mile Delivery

There are five steps to last mile delivery to go through to ensure it is accurate and efficient. 

  1. Enter orders into a centralized system
    You've been tracking the order all along. At this point, the customer is most likely also tracking it through a tracking number. It’s essential that you track the order to know precisely where it is if they have any questions along the way. 
  1. Orders arrive at the transportation hub. 
    Last mile delivery begins at this step. From here, the business must ensure that the order gets to the customer as quickly and efficiently as possible. 
  1. Designate delivery personnel. 
    Designate delivery personnel to deliver the parcel using a last-mile logistics solution. 
  1. Load orders onto delivery vehicles. 
    Scan each item before loading them onto the delivery vehicles. This is an important part of tracking as it updates the sender and the recipient as to the order's status. You don’t want anything to get lost along the way. 
  1. The order reaches the recipient. 
    Once the order reaches the customer, the last mile delivery process is complete. Be sure to update the tracking information to indicate the item has been delivered. 

Last Mile Delivery Challenges

Big-name companies like Amazon and Walmart are replacing last mile delivery with middle mile delivery. With middle mile delivery, the company owns the fulfillment, so the delivery process goes from the port to the fulfillment center. The problem with last mile delivery is that it is expensive: it can account for 53% of a shipment’s total costs. Supply chain inefficiencies are increasing as need grows, and so costs are only going up. It’s vital to optimize last mile delivery if you want to use it for your business. 

How to Optimize Last Mile Delivery

Technology is the answer to optimizing last mile delivery. Route planning software, for example, can minimize delivery costs and cut the time that it takes to deliver. Auto dispatching also helps to cut down on mistakes and time. Finally, gathering data and getting detailed reports can help identify problems in your operations and tell you how to improve upon your weaknesses. Fleet management software like Azuga offers all of these features and more to help optimize your last mile delivery options. 

Conclusion

Last mile delivery is still the standard way smaller businesses do their deliveries, and Azuga makes it possible to keep last mile delivery, even while competing with big retailers. Find out more about Azuga by reading our blog or visiting our website.

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