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Do Dash Cams Reduce Insurance Premiums?

Do Dash Cams Reduce Insurance Premiums?

Dashboard cameras can help to reduce insurance premiums in two ways, 1. by supporting driver safety and driver training initiatives, and 2. by protecting a business against false insurance claims. When used alongside telematics, dashboard cameras can help businesses reduce accident rates and hence improve their claims history. 

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What do dashboard cameras record?

The majority of dashboard cameras are forward-facing and provide a view out of the vehicle’s windscreen, making a visual record of the road ahead. The footage is recorded continuously and if an accident were to occur, the footage of that incident would be stored in the cloud and made available to the vehicle owner. For fleets these recordings are a great training tool and can also help protect against fraudulent insurance claims. 

How does the perception of risk influence fleet insurance premiums?

Risk is perhaps the most important factor for insurers when determining premiums. The assessment of risk lies at the heart of their considerations, so insurers will be on the lookout for any signs that fleet operators are complacent about particular risks and hazards – be they road traffic accidents, theft, vandalism, and so on. Where fleet operators are considered to have taken inadequate precautions against particular risks, the chances are insurers will punish them. Fleets therefore need to keep risks and hazards at the forefront of their day-to-day considerations, so they can take adequate action to curb them.

How do dashboard cameras store footage?

Dashboard cameras use a range of different media on which to store video files. These include flash drives, internal SD cards, small hard drives and, increasingly, cloud-based storage systems. However, fleets which use hard drives, SD cards or flash drives must ensure that data is downloaded from them on a regular basis and stored securely. Otherwise, there is a risk that essential files could quite easily be overwritten. This is just one reason why many fleets are looking into cloud-based storage solutions for such data.

What other benefits do dashboard cameras offer fleets besides accurately allocating responsibility in the event of an accident?

There are several additional benefits that dashboard cameras offer fleets. For one thing, the presence of a dashboard camera provides drivers with another incentive to conduct themselves with care and caution on the road. Drivers who know they’re being monitored by a dashboard camera – as well as by telematics data – are less likely to take unnecessary risks when behind the wheel. This helps to improve not only driver safety but also the safety of other road users. In addition, it should also help to reduce maintenance and repair costs, as more careful driving means less wear and tear for vehicles. The presence of a dashboard camera should also help to reduce the number of accidents by forcing drivers to be more careful. This is again something that insurers are likely to take into account when setting premiums for fleets, as it is likely to mean fewer insurance claims.

What are the advantages of hardwire dashboard cameras?

There’s a diverse range of dashboard cameras to choose from, the cheapest of which can be stuck to the windscreen and plugged into a power point or cigarette lighter socket. But this can be problematic – the wires can get in the way, and the dashboard camera itself might fall off the windscreen. Furthermore, insurers are quite likely to discount the presence of these cameras altogether. There is, however, another option. You can have a dashboard camera hard wired and professionally fitted; this is the most convenient longer-term solution. Where other dashboard cameras may have a limited battery life of their own, hardwire cameras receive a continuous flow of power from the vehicle’s battery. This can allow for overnight recording, even when the vehicle is parked up and the ignition switched off. This can help to enhance the security of the vehicle, which again is something insurers are likely to take into consideration when setting premiums.

For further relevant information, you can download Teletrac Navman’s free risk management guide here.

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