How Dash Cams Affect Car Insurance

Dash cams don't directly lower car insurance premiums, but they can provide crucial evidence in accidents, potentially leading to quicker claims and fewer disputes.

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Renata Balasco

Senior Content Strategist

Renata joined The Zebra in 2020 as a Customer Experience Agent. Since 2021, she has worked as licensed insurance professional and content strategist.…

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  • 5 years of experience in the insurance industry
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Beth Swanson

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Beth joined The Zebra in 2022 as an Associate Content Strategist. A licensed insurance agent, she specializes in creating clear, accessible content t…

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  • Associate in Insurance Services (AIS)
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Susan Meyer

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Susan is a licensed insurance agent and has worked as a writer and editor for over 10 years across a number of industries. She has worked at The Zebr…

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Car insurance and dash cameras: what to know

While historically used in commercial vehicles like cargo trucks and law enforcement vehicles, dash cameras are becoming a popular choice for drivers of passenger vehicles. These cameras are typically mounted on your car's dashboard and face the windshield, capturing your journey in real time. Let’s explore the potential benefits of dash cams and how having one could affect your auto insurance.


The case for dash cameras

Dash cams provide security in the ability to capture roadway events, with multiple-vehicle accidents being the most important. Without video evidence, collisions can turn into a “he said, she said” situation, and the claims process can be taxing.

Dash cams provide indisputable proof of events, making insurance claims more cut-and-dry and forcing the other party to be truthful. Dash cams may also record collisions involving other cars within the camera's field of view, so they are potentially beneficial to other motorists as well.

They're becoming increasingly popular among U.S. drivers, with approximately 10% to 18% of drivers in the country using them in personal vehicles.[1]

telematics
Dash cams vs. telematics: What’s the difference?

Dash cams record video of your drive, capturing what happens on the road. Telematics devices don’t use video; they track driving habits such as speed, braking, and mileage using sensors and GPS data. Think of it this way: dash cams show what happened, telematics show how you drive.


5 reasons to use dash cams

While it may seem like dash cams should be a common insurance discount similar to those for anti-theft devices, insurance carriers do not yet offer any lower premiums for owning a dash cam. If lowering your current monthly rate is your main goal, getting quotes from multiple insurers is a better option. However, it’s important to note that while these devices cost money to purchase initially, they may save you in the long run if you get into an accident.

Here are a few reasons why outfitting your vehicle with a dash camera is a good idea and can indirectly impact your auto insurance.

camera
1. Video evidence of accidents

One of the biggest benefits of having a dash cam is the clear, reliable evidence it provides. After a collision, it’s not uncommon for people to dispute what happened—or even shift blame to avoid being found at fault. Without witnesses, it can come down to one person’s word against another’s. Dash cam footage can clear up the confusion by showing exactly what happened.

Being found at fault for an accident can raise your insurance rates and stay on your driving record. With video proof, you can show the true story, help resolve claims faster, and get your payout sooner.[2]

paper
2. Recording incidents other than collision

Dash cams can capture everything in front of your windshield — and even more if you add rear or interior cameras. That footage can be useful beyond crashes, offering evidence in cases of theftvandalismwildlifedamage, or falling tree limbs. Just check your policy details, since these incidents are usually covered under comprehensive coverage  or specific endorsements.

Car thefts and break-ins can be tough to prove, especially if only your belongings were stolen. A dash cam can catch the culprit on video, helping police identify them and making your claim easier to resolve. In some cases, simply having a visible camera can discourage thieves altogether.

driving
3. Improving your driving skills

One of the best ways to improve a skill is to watch yourself practice. Reviewing your driving footage can demonstrate how you can be a better driver. You are able to see ways you can correct driving mistakes and do better going forward. While there is no insurance discount for dash cams, there are often discounts available for good drivers. Maintaining a good driving record and qualifying for that discount can lower your premiums and lessen the possibility of at-fault accidents in the future. At-fault accidents are one of the most common things that increase your insurance premiums.

driver
4. Monitoring other drivers

This is especially helpful if you have younger or first-time drivers on your policy. Drivers under the age of 25 have the highest insurance rates of any age bracket, as insurance carriers see them as the most inexperienced motorists and expect more frequent collisions or violations. A two-way dash camera might also be useful here, as you can see any distracted driving habits behind the wheel as well as what’s going on on the road. Monitoring your teen or young adult’s driving skills via video is a great way to teach them best driving practices and keep their record clean, allowing them to qualify for a safe driving discount quicker. 

car
5. Fighting insurance fraud

Insurance fraud happens more often than many drivers realize. In some cases, scammers stage “crash for cash” accidents to collect payouts. If you suspect this has happened, sharing your dash cam footage with the proper authorities can help prove what really occurred.

Fraud affects everyone by driving up insurance costs. Installing a dash cam can protect you and others by catching staged accidents and providing clear evidence after a crash. Fraud makes up about 10% of property and casualty insurance losses (around $45 billion each year), and staged crashes account for roughly $20 billion in illegal claims.[3] [4]

Common Types of Car Insurance Fraud and How to Avoid Them

Auto insurance fraud causes billions of dollars in losses each year. Here's how to spot scams and protect yourself.


Is a dash cam a good idea?

In the end, a dash cam can be a simple but powerful way to protect yourself behind the wheel. While it won’t directly lower your insurance rate, it can make a big difference if you ever need to file a claim or clarify what really happened after a crash. Having that footage can help your insurer review claims more accurately and even protect you from fraud. For many drivers, that added peace of mind makes a dash cam a smart investment in both safety and confidence on the road.

question

Dash cams and car insurance FAQs:

Not directly; most insurers do not offer automatic discounts for having a dash cam, though some usage-based or tech-friendly policies may consider it.

Yes, insurers may review dash cam footage to verify claims or determine fault in an accident.

Generally, you do not need to notify your insurer about a dash cam, unless your policy specifically offers a discount for using one.

A dash cam alone usually does not reduce premiums, but it can help prevent disputes and support claims, which may indirectly save money over time.

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Sources
  1. Dashcams Combat Rising Wave of Insurance Fraud. Insurance Thought Leadership

  2. Importance of dashboard camera (Dash Cam) analysis in fatal vehicle–pedestrian crash reconstruction. PubMedCentral

  3. $308.6 billion: The real annual cost of insurance fraud in the U.S. Property Casualty 360

  4. Rampant Fraud in Staged Accidents. R Street Institutes

About The Zebra

The Zebra is not an insurance company. We publish data-backed, expert-reviewed resources to help consumers make more informed insurance decisions.

  • The Zebra’s insurance content is written and reviewed for accuracy by licensed insurance agents.
  • The Zebra’s insurance editorial content is not subject to review or alteration by insurance companies or partners.
  • The Zebra’s editorial team operates independently of the company’s partnerships and commercialization interests, publishing unbiased information for consumer benefit.
  • The auto insurance rates published on The Zebra’s pages are based on a comprehensive analysis of car insurance pricing data, evaluating more than 83 million insurance rates from across the United States.