Dash cams are becoming increasingly popular for a few reasons. One reason is that they can provide valuable evidence in the event of an accident. In many cases, dash cam footage can be used to determine fault and help expedite insurance claims.
They also provide peace of mind to drivers by allowing them to record their journeys and monitor their surroundings while on the road. Additionally, insurance companies offer discounts to customers who have dash cams installed in their vehicles.
In the UK, all insurance companies offer specialized discounts to drivers who have a dash cam installed in their car.
Among the major car insurance companies in America like State Farm, GEICO, AllState, Progressive, USAA, etc, most offer dash cam discounts in one form or another… but why do they offer a discount in the first place?
Why do insurance companies offer discounts to drivers with a dash cam?
Drivers are more likely to drive safely when they know they’re being recorded. Insurance companies know this and view a person willing to put a dash cam in their car as less risky than one who wouldn’t.
Companies realize that if you get into a car accident, video footage is evidence that can be used to solve a case in court. For this reason, dash cams are vital to preventing insurance fraud.
Of course, not all claims end up in court. However, most people hate admitting they were at fault in a car accident, especially when they realize they’ll have to pay money to the person they crashed into.
Let’s dive into the requirements needed to get an insurance discount, as well as the potential savings benefits on your insurance premiums.
Dash Cam Lowers Insurance Rates
In many cases, having a dash cam installed in your vehicle leads to lower insurance costs. The initial investment in the camera might even offset the discount you get from your insurance company!
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Dash cams can also sometimes detect collisions while the car is stationary, which can be useful in tracking down the other driver if they do not leave any information.
It’s worth noting that usually only high-quality dash cams are accepted for insurance purposes, so it is important to get a decent one if you want it to be useful for insurance purposes.
Car Insurance Discount Requirements
Every insurance company is different, so the specific requirements for a dash cam to be eligible for a discount will vary. However, common requirements include:
- The dash cam must have a certain resolution or field of view in order to provide clear, usable footage.
- The dash cam must be installed in a specific location on the vehicle, usually on the windshield.
- The dash cam must be active and recording at the time of the accident in order to be eligible for the discount.
- The dash cam must include advanced features such as loop recording and a high quality G-sensor.
- The dash cam must be able to provide a clear view of the surrounding area, including the road and other vehicles.
- The dash cam must be hardwired to ensure that parking mode can be enabled without burning out the car battery.
Again, these are just examples of potential requirements, and the exact requirements will vary depending on the insurance company.
The amount of the discount can vary depending on the insurance company, so it’s important to check with your provider to see if they offer a dash cam discount and what the requirements are.
Claims Process Ease
Currently, a few US auto insurance companies that offer discounts to drivers for installing a dash cam in their vehicle. However, nearly all of them will accept dash cam footage when determining fault in an accident and potentially help expedite the claim process.
False insurance claims are a common problem in the US, and a dash cam can protect you from being on the losing end of such a situation. Having a dash cam can make the insurance claims process easier in a few ways.
First, it can provide clear, objective evidence of what happened in the event of an accident. This can help determine fault and make it easier for the insurance company to process the claim. Second, dash cam footage can be used to help expedite the claims process.
Instead of relying on conflicting accounts from the drivers involved in the accident, the insurance company can use the footage to quickly and accurately assess the situation.
Finally, a dash cam can provide peace of mind to the driver by allowing them to record their journeys and monitor their surroundings while on the road. This can help drivers feel more secure and confident, and make the claims process less stressful.
While a front-facing dash cam is a good start, it may be worth investing in a front and rear camera for complete protection around your car.
Although the initial cost may be higher, it could save you money in court costs and insurance rates in the long run. Maintaining a no-claims discount and a stable premium are also good reasons to record while driving.
How does a Dash Cam Prevent Insurance Fraud?
Insurance fraud is a common problem, and dash cams can help prevent it by providing objective evidence of what happened in the event of an accident. For example, if another driver falsely claims that you were at fault in an accident, dash cam footage can be used to show that their version of events is not accurate.
In this way, a dash cam can protect you from being on the losing end of an insurance fraud situation. By providing evidence that can be used to determine fault, a dash cam can help ensure that insurance claims are handled fairly and accurately.
Summary of Dash Cam Insurance Discounts
Having dash cam footage could decrease the waiting time for claims to be processed and lower rates due to the impact that car accidents have on the insurance industry. This, in turn, will lead to all cars with dash cams built into them, like a black box in an airplane.
These cars could be recognized in insurance premiums, similar to how snow tires and hybrid vehicles are currently. Black box technology is already used in some insurance plans and has helped good drivers lower their rates.
It can track factors such as brake force, cornering ability, current speed compared to speed limits, driving time, and distance traveled.
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Dash cameras can also monitor how people interact with traffic, such as how often they change lanes or speed through red lights, which can indicate reckless driving. Young drivers often have high insurance premiums because they are seen as inexperienced and potentially emotional behind the wheel.
Black box technology has helped careful young drivers save money by showing good driving practices. Dash cams could potentially replace black boxes because they provide even more information for insurance companies, which could result in more discounts for consumers.
If you are in an accident, be sure to look for the G-Sensor emergency recording, or use the “lock” feature on your dash cam to prevent the video file of the accident from being recorded over. If your car needs to be towed from the scene, remove your dash cam or the memory card before it is towed away, so you can use the video file in your insurance claim. This feature is usually accessed with a single button on the camera.
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