Dashcams and car insurance | finder.com

Dashcams and car insurance

Know the benefits of having a dashcam even though insurers may not offer a car insurance discount.

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Most companies don’t offer a discount for dashcams. But a camera could record the facts of an accident, saving you from a premium surcharge if you were deemed at-fault. Consider a telematics device instead if you’re going for a safe driver discount.

Do insurance companies offer a dashcam discount?

Many drivers have dashcams these days, but using them won’t necessarily get you an insurance discount. However, you could benefit from a dashcam in several ways:

  • Filing a claim. A camera might capture accident details that pinpoint who’s at-fault or the amount of damage caused. However, this may be less helpful in states with no-fault laws.
  • Proving fraud. You could provide visible proof of staged accidents, helping companies fight insurance fraud.
  • Avoiding surcharges. If a dashcam proves your innocence for a claim, you could save yourself from an increase on your premium.
  • Asking for a discount. While most insurers don’t advertise dashcam discounts, you could ask for one due to the added safety against fraud and theft.

What is a telematics discount?

Telematics devices still provide proof of your driving habits, but insurance companies use them differently. For one, the device doesn’t gather video, rather it monitors your speed, mileage, braking and number of trips to give insurers more information about your driving.

Using a telematics device can lead to a personalized assessment of risk, plus suggestions for improving safety. Many companies also offer a safe driver discount just for signing up for the program. If you’re using a pay-as-you-go insurance, the device also helps you pay only for the miles you drive.

How much can I save with a dashcam discount?

While insurance companies don’t offer official dashcam discounts, you might save money if the camera proves you’re not at fault for an accident. A standard accident could increase your rate around 30%, and serious accidents where bodily injuries or DUIs are involved could hike a premium above 50%.

The US is lagging behind other countries where dashcams can net you discounts of 10% or more. No major car insurer offers discounts yet, but that could soon change. The popularity of telematics devices have increased in the past few years alone, and dashcams and their related discounts could be soon to follow.

Case study: Dashcam saves the day

Sam was T-boned by another driver at an intersection, but the other driver claimed right of way. The damage amounted to $2,500. In this case, the dashcam proved that Sam had already stopped and pulled into the intersection when the other driver also entered without stopping. The dashcam may have saved Sam from a $500 premium increase if he were found at fault.

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Is a dashcam worth it?

A dashcam could save your skin after an accident, but not everyone will benefit from video monitoring. Factors to consider about getting a dashcam:

  • You may not get an insurance discount. You may not see savings on your premium from your insurance company.
  • You live in a no-fault state. Companies in no-fault states don’t investigate who’s at fault in an accident, making a dashcam less worthwhile.
  • You don’t drive that often. The less you drive, the less chance you’ll need proof of what happened in an accident.
  • You’re not guaranteed savings. You may not need proof if you’re not involved in an accident, and dashcams can range from $50 to $300.

Bottom line

Dashcams may prove your innocence after a car accident or fraudulent claim, but insurers don’t usually offer discounts for having one. Instead, you can shop multiple providers to see what other discounts you might qualify for.

Frequently asked questions about dashcam discounts

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