How Dash Cameras Impact Your Car Insurance 

A dash cam is a small camera that you place on your dashboard or affix to your windshield that records video of the road ahead of you as you drive. Some dash cams also have a second camera that records the inside of the car and the road behind, which can be used both to monitor driver behavior and get a more comprehensive view of any incident.

Dash cam footage is recorded on a loop onto a micro SD card, much like a security camera or CCTV. This means that the oldest footage is automatically overwritten when the memory card is full, saving you from the hassle of having to manually delete your old videos to make room for new ones. The videos are automatically split up into one-to-10-minute clips, so you don’t have to scrub through an extremely long video looking for a specific moment — you can just go by the time stamp on the file.

Many dash cams also have a G-sensor, which detects when accidents occur and automatically flags those clips for permanent storage. This helps ensure that you don’t accidentally overwrite the footage of an accident.

While having a dash cam in itself won’t lower your insurance premiums (in most cases), there are still several benefits of having one.

Provide Video Evidence for Insurance Claims

If you get into an accident or sustain other damage to your vehicle and make a claim, your insurance company will launch an investigation to determine if the claim is covered and who was at fault. If you’re found at fault, your liability coverage will pay for the other party’s injuries and damages, but not your own. If another party is determined to be at fault, your insurer may initially cover the claim and then pursue reimbursement from the responsible party’s insurer. In general, an at-fault accident will increase your insurance premiums, while an accident for which you weren’t at fault will have little or no impact on your premiums.

Since dash cams provide video evidence of accidents and other incidents, they can be used to bolster your claim. Instead of relying on testimony from both drivers, which may conflict, you can send your insurer a video of the incident and prove what happened beyond the shadow of a doubt.

But this can be a double-edged sword. If you were at fault, your dash cam will also serve as incriminating evidence. That said, you don’t need to alert your insurer when you install a dash cam, so you are under no obligation to show the footage. However, if you’ve previously filed a claim and used dash cam footage as evidence, your insurer will likely be aware you have a dash cam and may ask to see your footage for future claims — even if you are at fault.

Depending on the specific situation, you may be able to avoid sharing the footage, but some insurance companies may insist on seeing it. Be aware that lying and saying that the camera was off may constitute insurance fraud, and deleting the footage may invite suspicion.

Protect Against Insurance Fraud

Insurance fraud involving staged accidents to receive insurance payments is on the rise. If the fraudsters succeed and get money from your insurer, your rate can go up, as you’ll now have an accident on your record.

Luckily, a dash cam can serve as video evidence of attempted fraud and save you from this situation, keeping your rate low.

Help Keep You Mindful

Everyone is on their best behavior when they’re being watched, so a camera can be a great motivator to be a safer driver. Many insurance companies offer safe driver discounts to policyholders that are accident-free for a certain number of years, and a dash cam may be able to help you hit those benchmarks.

If you’re a parent, you can also use a dash cam to monitor your teenager’s driving — a particularly strong motivator for them to drive safely. Teens are considered a high-risk demographic and are charged higher premiums than other age groups, so keeping your teen cautious can help keep your rates as low as possible.

Many drivers for companies such as Uber and Lyft choose to install dash cams, especially those that record both the road and the interior of the car. For rideshare drivers, dash cams can be particularly valuable tools for enhancing safety, protecting against false claims, and potentially reducing liability.

Personal Safety

Dash cams that record the vehicle’s interior can deter passengers from inappropriate or dangerous behavior, as they know they’re being recorded. This added sense of security can help rideshare drivers feel safer, especially when driving late at night or in unfamiliar areas.

Documentation of Passenger Behavior

While rideshares are generally safe, incidents occur from time to time. Dash cams can record incidents involving passengers, including disputes, accidents, or issues with unruly behavior. This footage can be helpful if a passenger files a complaint against the driver or if there is an altercation in the vehicle. In these situations, dash cam footage provides a factual record that can support the driver’s case with both the rideshare company and insurance provider.

Insurance Coverage for Rideshare Drivers

If you drive for a rideshare company, it’s wise to purchase rideshare coverage. This coverage activates when the app is on but no passenger is in the car, or provides additional protection beyond what rideshare companies offer. Dash cam footage can support claims filed under this coverage just like it can any other claim.

Legal and Privacy Considerations

Rideshare drivers should be aware of the privacy laws surrounding dash cams in their region. In some states, it’s legally required to inform passengers they are being recorded, especially if audio is captured along with video. Failure to comply with these laws could lead to legal complications, so many drivers use stickers or notifications within their vehicle to inform passengers about the dash cam.

Getting a dash cam won’t directly lower your insurance rates, but it can provide some benefits that may save you from rate hikes and keep you safer on the road. However, just as it can prove your innocence, it can also prove your guilt.