Does a Dashcam Lower Your Car Insurance?

Dashcams have become increasingly common, leading many vehicle owners to question their potential impact on car insurance rates. While these devices offer security and evidence capture, their direct influence on premiums is a nuanced topic. This article explores the relationship between dashcams and car insurance, detailing how they can affect policy rates and contribute to potential savings.

Dashcams and Insurance Premiums

Dashcams can influence car insurance premiums in two primary ways: through direct discounts from certain providers and by offering indirect benefits during the claims process. While direct premium reductions are not universally offered, the evidentiary value of dashcam footage is widely recognized by insurers. Some insurance companies may offer explicit discounts for vehicles equipped with dashcams, with potential savings ranging from 5% to 20% in some regions or with specific partnerships. This practice stems from dashcams’ ability to reduce fraudulent claims and streamline accident investigations.

Dashcam footage serves as an impartial witness, providing objective evidence of what transpired before, during, and after an incident. This evidence can significantly expedite claim resolution, accurately determine fault, and protect policyholders from false accusations or “crash-for-cash” schemes. Preventing an “at-fault” claim is financially beneficial, as such claims can lead to substantial premium increases, sometimes ranging from 50% to 80%. Clear video proof helps maintain a policyholder’s driving record, safeguarding their no-claims bonus and preventing future premium hikes.

Considerations for Potential Savings

Dashcam benefits and discounts depend on various factors, as insurer policies vary widely. While some major U.S. insurers do not currently offer direct dashcam discounts, some smaller companies or those with specific partnerships might. Policyholders should consult their insurance provider to understand their stance on dashcam benefits.

Dashcam features also play a role in its value to an insurer. Insurers often prefer dashcams with high-quality video, GPS tracking, G-sensor technology (detecting sudden impacts), and parking mode. Front, rear, or interior recording provides comprehensive coverage for accident reconstruction and fault determination. These advanced features offer more robust evidence for claim assessment, making them more appealing to insurers.

Insurers may require proof of a functioning dashcam for discounts or claims purposes. Proof may include a purchase receipt, installation details, or a declaration of usage. While no dashcam models are universally “insurance-approved,” the device’s quality and functionality are paramount for its evidentiary utility.

Steps to Discuss with Your Insurer

To understand how a dashcam impacts your car insurance, contact your current insurance agent or company. This allows you to inquire about specific dashcam discounts. Also ask how a dashcam could influence your policy in the event of a claim, even without a direct discount.

When speaking with your insurer, provide information about your dashcam. Include the specific model, installation details, and purchase date. These details help the insurer assess how the device aligns with their guidelines for evidence or benefits. You are generally not legally required to inform your insurance company about a dashcam, but disclosing it can be beneficial for potential discounts or smoother claim processing.

Clarify how any potential discount would be applied to your premium. Understanding the terms of adjustment, such as a percentage off a specific coverage type or an overall premium reduction, helps manage expectations. If an incident occurs, inform your auto insurance agent as soon as possible that you have dashcam footage. Video evidence can streamline claims, expedite investigations, and help resolve disputes.