Dash cams are becoming increasingly popular among drivers looking to protect themselves on the road. These small cameras, mounted on your windshield or dashboard, continuously record video while you drive—providing clear evidence in the event of an accident. But aside from peace of mind, many drivers wonder: does installing a dash cam lower your car insurance premium? The answer isn’t always straightforward, but here’s what you need to know.
How Dash Cams Work—and Why They’re Useful
A dash cam (short for dashboard camera) records video footage from your vehicle while you drive. Some models also capture audio, GPS data, or even the interior of your vehicle. Dash cams are especially helpful for:
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Proving fault in an accident
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Documenting hit-and-runs
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Monitoring driving behavior (great for teen drivers or employees)
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Protecting against insurance fraud (like staged accidents)
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Recording theft or vandalism while parked (with motion detection features)
While they don’t prevent accidents, dash cams can help reduce legal or financial fallout when incidents happen.
Will a Dash Cam Lower Your Insurance Rate?
In most cases, a dash cam alone will not directly reduce your insurance premium. Unlike safety features such as anti-lock brakes or airbags, dash cams aren’t yet considered a standard factor in pricing auto insurance policies.
However, that’s starting to change.
When a Dash Cam Might Help You Save
Some insurance companies are beginning to recognize the benefits of dash cams—and in a few cases, they offer small discounts or incentives for drivers who install and use them. You may be more likely to see savings if:
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You use a telematics-based policy that rewards safe driving habits
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You’re willing to share footage with your insurer
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You drive for a delivery or rideshare service and need additional documentation
Even if there’s no upfront discount, having a dash cam can help you avoid rate increases by protecting your version of events and avoiding fault in disputed accidents.
Dash Cams and Claims: The Real Value
While a dash cam may not lower your premium immediately, it can save you money long term by:
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Helping you prove fault and avoid paying out-of-pocket costs
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Speeding up the claims process
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Reducing the chance of a fraudulent claim being filed against you
In cases of “he said, she said” accidents, dash cam footage can make the difference between a denied claim and a fully covered one.
Will Insurers Ask for Dash Cam Footage?
More insurers are beginning to accept dash cam footage during claims investigations, especially when the cause of an accident is unclear. While they may not request it outright, providing it voluntarily could support your case and expedite your payout.
Keep in mind:
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The footage must be clear and time-stamped
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It should cover the lead-up and aftermath of the incident
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Some insurers may request full footage from before and after the event
Tip: Always save a backup copy and keep the memory card secure after an accident.
Are There Any Downsides?
While dash cams are generally beneficial, there are a few considerations:
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Not all insurers accept dash cam evidence (check your provider’s stance)
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Footage could potentially work against you if it shows you were at fault
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Some high-end dash cams can be expensive, especially with extra features like parking mode or dual-camera setups
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You may need to periodically manage storage and settings to keep it recording properly
How to Choose the Right Dash Cam
If you decide to install one, look for features like:
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Loop recording (records continuously by overwriting old footage)
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HD video quality (for clearer footage)
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GPS tracking (to show speed and location)
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G-sensors (to save footage during a collision)
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Parking mode (records while the car is parked)
Final Thoughts
While installing a dash cam won’t automatically lower your car insurance premium, it can still be a smart investment. From proving fault in an accident to protecting yourself from fraud, the potential savings down the line are significant. Check with your insurer to see if they offer any dash cam-related discounts—and whether they accept footage during the claims process. Look into a dash cam that fits your needs, and drive with greater confidence knowing you’ve got an extra layer of protection.
