The insurance implications of having a dashcam in your car

Your insurance premiums are impacted by numerous factors. Having a dashboard camera installed in your car may well be among them.

We investigate the implications for personal vehicle policies, as well as what a dashcam would mean for business vehicle insurance.

Tip: Chances are you can save on your car insurance. Get a quote today to be certain.

Does a dashcam change your premium?

According to Jody Schaper, director of Benneton Insurance Brokers, anything that lessens the risk of damage or loss to your vehicle may result in a premium reduction. 

A dashboard camera, or dashcam, will not automatically reduce your risk, and is therefore unlikely to attract an outright premium discount. However, there are indirect ways in which you can still save money.

“A camera in your private car will assist you if there is a claim. The footage can prove you weren’t at fault and the insurance company can use the footage to make a recovery of the claim against the third party who is at fault,” says Schaper.

She explains that your record will then remain clear, and over time you will receive further premium discounts because you will be considered lower risk.  

“I believe that installing a dashcam is definitely worth the cost. Everyone wins when you take extra precautions to safeguard your car,” says Schaper.

READ MORE: These factors will fluctuate your car insurance excess

What about a dashcam in a business vehicle?

Schaper says that big companies may use a camera system to monitor driver behaviour, and this could result in a premium discount, as well as providing accident footage and hijack monitoring.

We have all seen footage of business vehicles, such as trucks or cash-in-transit vehicles, that have undergone extreme circumstances. But these cameras were not installed for entertainment purposes. They are there to assist both the drivers and the owners – especially when it comes to insurance.

According to Precious Nduli, head of marketing and technical marketing at Discovery Insure, having a dashcam in a business vehicle is an important risk management solution.

“Camera solutions have become advanced and can show high quality visuals, including inward and outward views of the car,” says Nduli. “This gives the fleet owner a view of how the vehicles are driven on the road.

“A dashcam can also enable the driver to demonstrate to their employer that they drive the vehicle well and that they are responsible,” she explains.

Nduli says that knowingly being visible to the fleet manager via a dashcam can motivate drivers to improve their driving behaviour and avoid accidents on the road, resulting in fewer insurance claims.

As with private vehicles, having a dashcam in a business vehicle will not automatically reduce the insurance premium, but there are indirect benefits.

“If the business has reduced claims, this may over time reduce their insurance premiums. At claim stage, the insurer may be able to use visuals from the dashcam to get a better idea of what happened. This may help the client prove that they were not at fault,” says Nduli.

She points out that the cost of a dashcam can vary significantly, depending on the features that are included. However, she estimates unit cost to range between R1,000 and R16,000.  

Don’t drive your vehicle without being covered. Get a car insurance quote today to find out more.