How delivery management software helps reducing insurance costs

Alongside the mandatory Motor Vehicle Liability, the vehicles you use for your deliveries can also be protected with additional coverages, such as theft and fire, accidental damage and injury to the driver.

All these coverages, however, have a cost that can weigh heavily on the company’s budget. But how to reduce insurance costs? In this guide, we will explain how you can lower the costs of insurance policies for your vehicles by controlling some key factors through advanced delivery management software.

Insurance policies and kilometres travelled: what is the link?

Generally, in the automotive world, there is a strong correlation between the kilometres travelled by a vehicle and the the insurance fee. If you travel many kilometres every day, there are more chances of incurring a claim. The more time you spend on the road, the greater the chances of having to manage practices related to accidents and all that they entail.

This particularly affects the logistics sector dynamic, because those who deal with deliveries travel many kilometres every day and are subject to higher insurance costs than, for example, those who work in other sectors. The costs are also higher because those who drive the vans have a vehicle in their hands that is not their own and, therefore, tend to lower the levels of attention towards the vehicle. This also contributes to increasing the risk of incidence of a claim.

Starting from this assumption, we can say that there is a solution to reduce this expense and, at the same time, monitor the behaviour of your drivers. All this, in fact, is possible using advanced last mile delivery management software such as GoTraxx.

Why does advanced delivery management software lower the insurance premium?

Delivery management software helps you keep track of your fleet activities and monitor it in real time. In addition, with these tools, you can obtain KPIs on deliveries and optimize the routes of drivers.

Having said that, there are three main ways in which an advanced management software helps you reducing the insurance cost:

1. Reduce the number of kilometres travelled
2. Monitoring your drivers’ behaviour
3. Integrated crash report management

Let’s see these in detail.

# 1 – Reduce the number of kilometres travelled

Delivery management software can reduce the kilometres travelled by your fleet. This is because, thanks to an algorithm, it is possible to maximize the capacity of your fleet with shorter routes, planning more convenient ones. For example, by taking advantage of GoTraxx’s Artificial Intelligence, you can reduce your routes by up to 30% and save up to 40% on delivery time.

We have said that there is a strong correlation between the number of kilometres travelled and insurance costs. By acting on that juncture, insurance costs can be contained, as well as the potential possibilities of being involved in a claim.

In addition to this, the reduction of kilometres also allows you to:

• Lower fuel costs, one of the weak points in the delivery world
• Reduce CO2 emissions in the atmosphere, adopting a more sustainable approach
• Reduce maintenance costs due to a better use of the van

PLEASE NOTE: in the policies environment aimed at individuals, there are already insurance formulas that allow you to pay based on the kilometres travelled. In other words, the policy bonus depends on the kilometers you drive each day. Our forecast, observing market trends, is that soon this possibility will also be available for commercial vehicles. Starting now to reduce mileage will be useful to access more flexible policies and more advantageous economic conditions.

# 2 – Driver Behaviour Monitoring

One of the most common problems related to managing last-mile delivery concerns the driving behaviour. By driving company-owned vehicles, and with the pressure to deliver the entire load on time, drivers tend to be less cautious in driving and perceive less responsibility when driving.

With a delivery management software like GoTraxx, you can inform your driver of his driving behaviour and you can monitor all driving behaviours and have complete statistics on the performance of your drivers. This way you can help the driver improve his driving habits so that the risk of accidents is reduced.

# 3 – Integrated crash report management

After talking about tools at the service of driver safety through an improvement in driving style, another point to consider concerns the management of the crash report. The crash report helps to reconstruct the dynamics of a claim, analysing the available data.

With advanced delivery management software such as GoTraxx you can obtain this system and return a report to the insurance company with the dynamics of claims, helping to understand who is responsible. You can also answer claims reported by third parties by proving that the vehicle was not at the scene of the accident and thus foil a scam attempt.

This can cut down on insurance costs and help you have full control over your vehicles, as well as empower drivers. If your internal management system issues the driver with a fine in case of an accident, he too will benefit directly from this service if the non-existence of your company’s responsibility is proven.

Choose GoTraxx and start managing your last mile deliveries

Do you want to optimize last-mile deliveries, reduce organizational expenses and travel less kilometres, saving time and fuel?

GoTraxx is the software that can help you achieving this. With GoTraxx you can monitor your fleet in real time, optimize daily routes, track deliveries and check your drivers’ behaviour. All in one system, with a dashboard that allows you to read all the significant data to maximize your performance.

Start saving on managing your fleet with GoTraxx now!

---