Does having a dash cam lower insurance?

What is a dashcam?

A dashcam is a small video camera mounted inside your vehicle to record the road while you drive. Many models record continuously on a loop and save impact footage after a crash. Some dashcams also include rear cameras, parking mode, GPS, night vision, and app access.

Dashcams record video onto an SD card, and when the card is full, they start recording over old data in a continuous recording or loop recording feature, so you are constantly recording what is happening out on the road.

Dashcams come in a variety of styles and price points. They can record in 720p, 1080p, 1440p, and some even take the resolution up to 4K. They can be powered via a 12-volt outlet, hardwired with a hardwiring cable, or with an OBD-2 cable.

Dashcams can also be loaded with a wide variety of features, including night vision and 24-hour parked-car monitoring, which can help identify any hit-and-run drivers. GPS tracking and time and location stamping are also common features. Some dashcams connect to an app on your phone and allow you to view and download video remotely and even access your smartphone’s playlist.

Does any insurance company offer a car insurance discount for a dashcam?

Direct dashcam insurance discounts are uncommon in the U.S. No major insurer offers a standard discount for installing one. A dashcam can still help you save indirectly if footage proves you were not at fault, helps resolve a claim faster, or identifies a hit-and-run driver.

In November of 2021, Branch Insurance, a startup founded in 2017 in Columbus, Ohio, began offering drivers an 8% discount on auto insurance rates upon installing a Nextbase dashcam, before ceasing operations in late 2023 and shutting down its insurance business.

Even without a dashcam insurance discount, merely having a dashcam can indirectly help lower your premium, which in turn helps keep your car insurance rates down.

How much does a dashcam cost?

Dash cam prices range from less than $100 for a basic model to $400 or more for one with all the bells and whistles. Once you cross the $200 price point, the cam should include high-end features such as 4K resolution, night vision, 24-hour parked-car monitoring, and GPS tracking.

What are the advantages of a dash cam?

A dashcam gives you video evidence when an accident, hit-and-run, vandalism, or traffic dispute happens. It can help prove fault, support an insurance claim, document damage to a parked car, and monitor a teen driver. The biggest benefit is having a clear record when memories or statements conflict.

Here are several dashcam uses to think about:

1. Have a record of your accident

Drivers often have completely different memories and descriptions of an accident. With video proof that you weren’t the driver responsible for a car crash, you can save yourself from the he-said, she-said stress and from being found at fault by a car insurance company – and from receiving higher auto insurance rates that go with that finding.

Your dash cam footage can also expedite your claim, as it may prevent you from having drawn-out discussions with insurance companies about who was at fault.

2. Get out of a ticket

If you’re stopped for a traffic violation you didn’t commit, offer up your dash camera footage to the law enforcement officer before the ticket is written. If the officer won’t watch it, bring the footage to court to contest the ticket.

Moving traffic violations will normally result in points on your state driving record, which can lead to higher car insurance rates. Not receiving a ticket – or beating a ticket in court due to video proof of no wrongdoing – will keep you from a nasty auto insurance surcharge.

3. Help fight insurance fraud

A dashcam can help fight insurance fraud by recording staged crashes, sudden stops, or false injury claims. Fraud raises costs for insurers and drivers. If your footage shows what happened, share it with your insurer or the proper fraud unit so the claim can be reviewed.

The FBI estimates that the cost of insurance fraud is more than $308 billion per year. The agency estimates that the average family spends between $400 and $700 more per year on premiums due to fraud.

When auto insurers unknowingly settle fraudulent claims, all motorists pay hundreds of dollars extra each year because companies divide the cost of fraudulent claims among consumers.

Mercury Insurance’s Special Investigations Unit (SIU) often uses video to fight insurance fraud. For example, a car collision captured on a dash camera showing a driver making a sudden and unnecessary stop helped the Mercury SIU team defend their insured in a personal injury claim. The dashcam evidence directly resulted in the claim and pending lawsuit against Mercury’s customer being dropped.

4. Make you a better driver

Reviewing how you drove in the last week can help you see ways to correct driving mistakes, such as braking too hard or switching lanes abruptly.

Being a better driver should lead to a good driving record, which should result in obtaining (or keeping) a good driver discount. A good driver discount is one of the best car insurance discounts to have, as it can be up to 25% and typically applies to most of your auto coverages.

Additionally, better drivers have fewer at-fault accidents, and at-fault accidents may increase car insurance rates. For example, one at-fault accident with property damage over $2,000 can increase your car insurance premium by an average of up to 61%.

5. Review your teenager’s driving skills

A two-way dashcam or multiple dash cameras for a teen allow you to see not only how your teen is driving but also what is going on inside the vehicle. Is your teenager paying attention to the road, or are they texting on their cellphone or distracted by passengers? You can curb bad behavior in the car before it leads to an accident or a ticket.

Drivers under the age of 25 have some of the highest car insurance rates. Insurers charge them higher rates because of their lack of experience behind the wheel and tendency to crash and file claims. Anything you can do to keep your young driver from getting in an accident or from getting a ticket – either of which is bound to raise your already high rates into the stratosphere – is well worth the effort.

6. Keep an eye on your unattended vehicle

Most dash cameras have an option that allows you to turn them on standby, which permits the camera to turn on only if it detects motion in or around the car. So, if someone breaks into your car or hits your parked car and takes off, you may be able to review the dashcam footage and find the individual responsible.

If you can’t find the person on your own, then you can hand the footage over to your insurance company to prove how the damage was done, and also to the police to see if the culprit can be located.

How does a dashcam work?

A dashcam records video while your car is running and saves footage to a memory card or cloud service, depending on the model. Most cameras record on a loop, replacing old clips when storage fills. Impact sensors can lock crash footage so it is not overwritten.

A dash camera starts recording as soon as the ignition is turned on and records on a loop. Each clip is saved to a micro-SD card, and when the card is full, the loop restarts and overwrites the old data.

Many dash cams have a built-in G-sensor that will detect a change in acceleration. When an impact is detected, the camera will start recording, and impact recordings are often kept in a separate folder, so they are not recorded over.

If a dash camera has a parking mode, it will record any motion or impact while your vehicle is parked. The dashboard cam must be hardwired into the vehicle for parking mode to work.

Are there dashcam disadvantages?

Dashcams can help after an accident, but they also have drawbacks. A poorly mounted camera can block your view; a visible camera can attract theft, and footage can work against you if it shows you caused the crash. Audio recording can also create privacy issues in some states.

In most cases, the advantages of having a dashcam outweigh the disadvantages, but there can be cons to having a dashcam. Here are just a few to consider:

Distraction: This is probably the biggest disadvantage of a dashcam; it can be distracting on the road. Depending on where it is mounted, it can create a blind spot.
Theft: Dashcams are typically mounted near the top center of your windshield, making them very obvious to thieves.
Footage can work against you: While having footage that proves the other driver was at fault can be a big advantage, if the footage shows the accident was your fault, or that you were distracted while driving, a dash cam can quickly become a liability.

A dash cam can be a great addition to your vehicle, providing peace of mind when your car is parked and potentially keeping your insurance premium affordable if it documents another driver’s fault in an accident.

FAQ: Dashcams and car insurance

Does having a dashcam lower car insurance?

Major U.S. insurers do not offer a standard discount for having a dashcam. However, a dashcam can help protect you from a rate increase if footage proves you were not at fault in an accident or helps identify a hit-and-run driver.

Can dashcam footage help with an insurance claim?

Yes. Dashcam footage can help show how an accident happened, who was at fault, and whether another driver left the scene. Clear footage can speed up the claim process and reduce disputes between drivers and insurers.

Can dashcam footage be used against me?

Yes. If the footage shows you caused the crash, drove distracted, ran a red light, or broke another traffic law, it can work against you. Save complete, unedited footage and speak with your insurer or attorney if the claim is serious.

Are dashcams legal in every state?

Dashcams are legal in the U.S., but state rules differ on windshield placement, driver visibility, and audio recording. Mount the camera where it does not block your view, and check consent laws before recording audio inside the vehicle.

Should I send dashcam footage to my insurance company?

You should send dashcam footage to your insurer if it supports your claim. Do not edit the clip. Save the original file, back it up, and share the footage through the insurer’s approved claim process.