Dashcams & Discounts: Can Technology Lower Your Car Insurance Premium?

The idea of a dash cam paying for itself through insurance discounts is appealing. Many drivers wonder if installing one of these devices can genuinely lower their car insurance premiums. It’s a question that pops up frequently, especially with the rising cost of car insurance in the UK. While the direct discount for simply having a dash cam might be less common now, the indirect benefits can be substantial. These devices act as silent witnesses, providing crucial evidence that can save you money and hassle.

51,700
motor fraud claims detected in 2024
brumble.co.uk

9 million
UK drivers have a dash cam
brumble.co.uk

10%–15%
discount for dash cam users
brumble.co.uk

7 in 10
dangerous driving clips led to police action
moneysupermarket.com

Evidence is Key
Dash cams provide objective evidence, helping to prove fault in accidents and deter false claims.

Protect Your No-Claims Bonus
Clear footage can prevent your no-claims discount from being affected if you’re not at fault.

Deterrent to Fraud
The presence of a dash cam can discourage opportunistic fraud and staged accidents.

Safer Roads
Uploading dangerous driving footage can help authorities take action against reckless drivers.

Understanding Dash Cams and Car Insurance

A dash cam, short for dashboard camera, is a small video camera that is mounted on your vehicle’s dashboard or windscreen. It records footage of your journey. This footage can be invaluable in several situations related to your car insurance. It acts as an independent witness, capturing events as they happen. This can be crucial in resolving disputes after an accident. All major UK insurers now accept dash cam footage as claims evidence.

No-Claims Bonus
A discount on car insurance that rewards drivers for each consecutive year they have been insured without making a claim.

If I were in a situation where fault for an accident was unclear, my first move would be to check my dash cam footage. This would give me a clear picture of what happened and help me present my case effectively to the insurer.

Why Dash Cams Matter for Your Premium

The primary way a dash cam can influence your car insurance is by providing irrefutable evidence. Without clear evidence, accident fault can descend into a frustrating “he said, she said” dispute, potentially leading to a 50/50 settlement. This means you might still have to pay part of the claim, even if you weren’t entirely to blame. Such settlements can also negatively impact your no-claims bonus. Dash cams help to avoid this by offering objective proof of what occurred. This can be particularly helpful in common scenarios like rear-end collisions, where liability might seem straightforward but can sometimes be contested.

Insurers are keen to reduce fraud. In 2024, insurers detected over 51,700 motor fraud claims worth £576 million. Dash cam footage can help insurers identify fraudulent claims more easily. It can also deter drivers from making false claims against you, knowing that their actions are being recorded. This reduction in fraud benefits all policyholders through more stable premiums over time.

Protecting Your No-Claims Bonus
A dashcam can protect your no-claims discount by providing evidence you weren’t at fault in an incident. This is crucial as losing your no-claims bonus can significantly increase your future premiums.

The National Dash Cam Safety Portal has received over 135,000 dangerous driving clips in the past five years. Seven in ten submissions have led to police action. While this doesn’t directly affect your insurance premium, it contributes to safer roads, which is a benefit for everyone.

Navigating Common Dash Cam Misunderstandings

Assuming Direct Discounts Are Automatic

One common misunderstanding is that simply fitting a dash cam will automatically lead to a lower insurance premium. While some insurers used to offer direct discounts, this is becoming less common. The focus has shifted from rewarding ownership to rewarding safer driving behaviour, which a dash cam can help demonstrate. You might find that direct, upfront discounts for simply owning a dashcam are now rare. Instead, the value lies in how the footage can be used during a claim.

Overlooking Installation Costs

While dash cams can save you money, it’s important to factor in the initial cost. A decent dash cam UK drivers can rely on typically costs between £70 and £250. Some budget models can be found for less than £50, while high-tech models can exceed £400. Professional fitting, which ensures the camera is securely and discreetly installed, can add another £25-£70. This initial outlay needs to be considered against potential future savings.

If I were choosing a dash cam, I’d want to ensure it had good night vision and a wide-angle lens. My first move would be to research models that are known for reliability in various weather conditions, as this footage is what will ultimately help me in a claim.

Believing All Footage is Equal

Not all dash cam footage is equally useful. Low-resolution cameras or those with poor night vision may struggle to capture crucial details like number plates or road signs. This can render the footage less helpful in an insurance claim. It’s important to choose a camera that records in at least 1080p HD, with good low-light performance. Features like GPS logging, which records your speed and location, can also be beneficial evidence.

This article may contain affiliate links. If you buy through them, BritWealth may earn a small commission at no extra cost to you. As an Amazon Associate, we earn from qualifying purchases.

Maximising Your Savings with a Dash Cam

Choosing the Right Dash Cam

When selecting a dash cam, consider what features are most important for your needs. Basic models record front-facing video, while more advanced ones offer dual-channel recording (front and rear), parking mode, and GPS tracking. Parking mode can be particularly useful, as it records even when the car is parked, capturing any bumps or vandalism. GPS logging can help establish your location and speed at the time of an incident. For example, the Garmin Dash Cam Mini offers compact design with incident recording and app support, while the Garmin Dash Cam X310 provides 4K resolution and voice control.

Understanding Insurance Policy Terms

It’s essential to check with your insurer about their stance on dash cams. Some insurers may offer a specific discount, while others may simply accept the footage as evidence without a premium reduction. You might need to inform your insurer that you have a dash cam fitted, as some policies require this disclosure. Specialist policies might offer higher discounts, potentially up to 30% off, though these policies may have specific requirements.

If I were looking to get the most out of my dash cam for insurance purposes, I’d want to understand exactly how my insurer uses the footage. My first move would be to contact them directly and ask about any potential discounts or specific requirements for submitting evidence.

Using Dash Cam Footage Effectively

If you are involved in an accident, your dash cam footage can be your best ally. Always ensure your dash cam is functioning correctly and recording. If an incident occurs, save the relevant footage immediately. Do not edit or alter the footage in any way, as this could invalidate it as evidence. When reporting an accident to your insurer, mention that you have dash cam footage available. They will guide you on how to submit it.

For those who drive for work or manage a fleet, devices like the SmartFleet AT202 4G Vehicle Tracker offer advanced tracking and monitoring capabilities that can complement dash cam data.

When Dash Cams Might Not Help

It’s important to note that a dash cam won’t help if you are clearly at fault for an accident. If your footage shows you running a red light or speeding excessively, it will likely be used against you. Similarly, if the footage is too poor quality to be useful, it won’t provide the intended benefits. Dash cams are tools to establish facts, not to absolve drivers of responsibility when they are clearly in the wrong. If you’re concerned about driving behaviour, exploring options like telematics insurance might be a more direct route to lower premiums.

→ Scroll right to see all columns
Source: brumble.co.uk
Dash Cam FeatureTypical Cost RangeInsurance Benefit
Basic Front-Facing Camera£50 – £150Evidence in accidents, potential for small discounts
Dual-Channel (Front & Rear)£100 – £250Comprehensive evidence, stronger case for no-claims protection
Advanced Models (4K, GPS, Parking Mode)£150 – £400+Detailed evidence, potential for higher discounts with specific insurers
Professional Installation£25 – £70Ensures correct setup, avoids electrical issues

Frequently Asked Questions

Can a dash cam guarantee a lower insurance premium?
Not directly. While some insurers offer discounts, the main benefit is using footage to prove fault and protect your no-claims bonus, which indirectly saves money.
How much can a dash cam reduce my insurance by?
Discounts typically range from 10% to 15%, with specialist policies potentially offering up to 30% off. This varies by insurer.
Do I need to tell my insurer I have a dash cam?
It’s best to check your policy. Some insurers require notification, while others may offer a discount if you inform them.
What if the dash cam footage shows I was at fault?
If the footage clearly shows you were at fault, it will likely be used by the insurer to process the claim accordingly.
Are dash cams expensive to install?
Dash cams themselves range from under £50 to over £400. Professional fitting typically costs between £25 and £70.

Ultimately, a dash cam is a valuable tool for any driver. It provides peace of mind and can offer significant financial protection by helping to resolve insurance claims fairly and efficiently. If this was useful, you might also want to read How to Handle Rear-End Collision Liability with Insurance.

Sources and Further Reading

Do Dash Cams Reduce Car Insurance Premiums? — Brumble provides insights into dash cam usage and insurance discounts.

Does a Dash Cam Reduce Car Insurance? — MoneySuperMarket explores the link between dash cams and insurance costs.

Dashcam Impact on UK Car Insurance — WeCoverr discusses how dash cams affect car insurance premiums and claims.

Brumble, 2024.

MoneySuperMarket, 2024.

wecovr, 2024.

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Sam Willy

I’m Sam Willy, one of the bright minds behind BritWealth.com, where I share insights, stories, and fun ideas about a wide range of topics—finance included, but not limited to it! My journey into the world of writing began with a simple hobby: sharing the things that fascinated me. From quirky facts to deeper dives into personal development, I’ve always been curious about the world around me and love passing that knowledge on.
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