Does Having a Dash Cam Lower Insurance Premiums?

How much does a dash cam reduce insurance? That’s a question that many people are asking because studies show how dash cams can lower accident rates. This article will go through the benefits of having a dash cam and how it can save you money on your insurance premiums by reducing the incidence of fraud.

Dash cams are cameras, usually mounted inside the car, which allow drivers to record their travels in case they need evidence in an incident that they were involved in. By using dash cams, drivers can protect themselves against false accusations of minor accidents or other incidents and thus lower the cost of their insurance premiums.

Do Dash Cams Actually Lower Insurance Premiums?

Dash cams in themselves do not reduce insurance premiums, but they can provide evidence that may result in lower premiums when defending against fraudulent insurance claims.

They record everything that takes place and so any false accusations can be refuted with footage from a dash cam. Insurance companies welcome the existence of dash cams because they lower the incidence of fraud and that means lower insurance premiums.

Dashcam installed inside the car

So, while there are no direct discounts for installing dash cams, by having them, you’re able to reduce incidents that lead to higher premiums.

The four primary cases where this comes into play are:

  • Being Unfairly Ticketed – Dash footage can help you dispute tickets or accident reports that you are unfairly ticketed for. The video evidence can help you fight tickets, ensuring that your insurance premiums won’t increase by 15-20% after getting a ticket.
  • Vandalism – Dash cams can help if your car gets vandalized or stolen because the dash cam records every single movement of your car. The footage can be used as evidence in court to support your case.
  • Being Unfairly Sued – Recording your ride can help you prove that a collision was not your fault and that in case of accidents, it could provide valuable proof that will diminish the impact on your premiums. The cam can be used to show that what is written in the accident report is incorrect. Your insurance company will use the footage to see if you were involved in a collision, and if so, they can provide a better settlement for you.
  • Protecting Evidence – Dash cams save a video record of where you’ve driven so you can refer back to it in the event of an accident or emergency.

How Can Dash Cams Help You Save on Fleet Insurance

driver recording using dashcam

If you manage a large fleet with lots of drivers, you can use dash cams to reduce fleet insurance premiums indirectly. This is because you will be in a better position to manage the risk, and you will also have a proper means of reducing the number of drivers who exhibit poor driving behavior.

Learning what went wrong after the fact is one aspect of having dash cameras in vehicles, but there are many other aspects that make dash cameras useful for fleet owners and managers. These include:

  • Improved driving behavior
  • Safety
  • Improved fleet management
  • Prevention of fraudulent claims

The benefit of having dash cams in your fleet is that it enables you to improve both safety and productivity. You will be able to monitor the drivers and see how they perform, thus enabling you to make informed decisions when hiring new drivers and monitoring their performance. This way, you will save on the cost of hiring new drivers.

a fleet driver using dashcam

Hiring quality drivers can make or break your business. According to the FMCSA, the average cost of a truck accident is around $91,000. An accident involving injuries costs upwards of $200,000. For owner-operators and small fleets, any incident has the potential to stop your business in its tracks.


  1. Is it worth getting front and rear dash cam?
    Yes, considering that 32.2% of all vehicle accidents were rear end collisions, it is worth it. Front and rear-facing dash cam units can ensure that you’re covered in front and from behind at all times, so no matter what sort of incident you are involved in, you’re always protected.
  2. What can fleet managers do to lower their insurance premiums?
    Fleet managers can lower their insurance premiums by following these three easy steps. First, they need to make sure their vehicles are in good condition and to avoid driving infrequently or at high speed.

    Second, they need to implement an accident prevention policy and make sure their drivers understand that exceeding a safe speed limit or being involved in accidents can quickly increase their insurance premiums.

    Third, they need to invest in enough dash cams to cover the whole fleet. This is important because relying on one single dashboard camera leaves room for mistakes and inaccuracies.
  3. Are dash cams just for accidents? Dash cameras are used to show what happened during an accident, but also for more. Some dash cameras can identify driving behaviors and show training areas to help improve safety across a large fleet.

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