Dash cams and car insurance

A dash cam will not usually lower your car insurance premium, but it can make a big difference after a crash. Clear video can settle a disputed fault decision in days instead of weeks. It is also one of the best defenses against staged crashes such as the swoop-and-squat, and it can help identify a hit-and-run driver. The catch is that footage cuts both ways. If you were speeding or looking at your phone, the video may hurt your claim.

How footage helps a claim

Disputed fault

Most claims stall when two drivers tell different stories and there are no independent witnesses. An claims adjuster then has to piece together fault from damage patterns, statements and the police report; see how fault is determined in a car accident. Video showing the light was green, or the other car drifted into your lane, can end that argument. Fault percentages matter in most states because of comparative negligence rules, which reduce what you can recover by your share of blame. Video that shifts your share from 50% to 10% can change the payout a lot.

Staged and caused crashes

The National Insurance Crime Bureau describes schemes built to make an innocent driver look at fault. In a panic stop, a driver brakes hard in front of you for no reason. In a "drive down," a driver waves you forward, then hits you and denies waving. In a swoop and squat, one car cuts off another so it stops short in front of you. A forward-facing camera records the cut-in, the wave and the sudden stop, which is exactly what investigators need. A rear camera helps if you are the one rear-ended. See staged car accident scams.

Hit-and-run and parked-car damage

A readable plate on video gives police and your insurer someone to pursue. Some cameras have a parking mode that records bumps while the car is off. That needs a hardwired connection or a battery pack, and it draws power. Even without a plate, video showing another vehicle caused the damage helps support an uninsured motorist property damage claim where your state requires proof the other driver was at fault. See hit-and-run accidents: how to file a claim.

Injury exaggeration

Cabin cameras and footage of how hard the impact really was can counter claims of serious injuries from a minor bump.

Will it lower your premium?

Don't count on it. In the U.S., dash cams are not a standard item on insurers' published discount lists. Ask your insurer anyway. Do not confuse a dash cam with telematics programs, which use an app or plug-in device to score your braking, speed and phone use and can earn a discount. Some of those programs and some commercial fleet setups include cameras, but they share data with the insurer. A camera you buy yourself keeps the video under your control. For what insurers collect through telematics, see what driving apps collect and how insurers use it.

The financial benefit is indirect. A claim decided in your favor keeps an at-fault accident off your record and can mean you get your deductible back through subrogation instead of paying it.

Footage cuts both ways

Your insurer and the other side can ask for your video, and in a lawsuit it may be subject to discovery. Deleting it after a crash because it looks bad for you can create far bigger problems than the footage itself. Before you rely on video, assume it will be seen by everyone involved and drive accordingly. Some cameras overlay speed from GPS, which can be helpful or harmful.

Mounting and recording rules

States restrict objects on windshields, and the rules vary. California's Vehicle Code 26708 is an example. It allows a video event recorder in one of three spots: a 7-inch square in the lower corner of the windshield farthest from the driver, a 5-inch square in the lower corner nearest the driver (outside the airbag deployment zone), or a 5-inch square at the top center of the windshield. For cameras that fit the statute's definition, California also requires a posted notice that passengers' conversations may be recorded. Other states have their own rules, so check your state's vehicle code or DMV before mounting. Behind the rearview mirror is often the least obstructive spot.

Audio is the bigger legal risk. Some states require the consent of everyone in a private conversation before it is recorded. California's Penal Code 632 prohibits recording a confidential communication without the consent of all parties. If you carry passengers, especially if you drive for a rideshare service, tell them about the camera or turn off audio recording.

Choosing a camera for insurance purposes

You do not need an expensive model, but these features matter:

• Front and rear coverage, since rear-end crashes are common and several staged-crash schemes depend on making you rear-end someone.
• Resolution and night performance good enough to read a plate.
• Automatic incident lock: a G-sensor that saves the clip on impact so the loop does not record over it.
• Accurate date and time stamps, ideally with GPS.
• A high-endurance memory card, since constant recording wears cards out. Check it every few months.

What to do with footage after a crash

1. Lock or save the clip immediately. Most cameras record in a loop and overwrite old footage within hours.
2. Copy it off the card to your phone or computer the same day, and keep the original file unedited.
3. Tell the police officer at the scene that you have video, and note it in your after-accident checklist and information form.
4. Give it to your own insurer first. Your adjuster will share it with the other insurer as needed. Avoid posting it online, which can complicate a claim or lawsuit.
5. Keep it until the claim is closed and any injury lawsuit deadline has passed.

Key takeaways

• A dash cam rarely earns a premium discount, but it can decide disputed-fault claims and protect your record and deductible.
• Video is strong evidence against staged crashes such as panic stops, drive-downs and swoop-and-squat schemes.
• Footage can also show your own mistakes, and deleting it after a crash is a bad idea.
• Windshield mounting rules vary by state. California allows specific 5- and 7-inch zones, and audio recording can require everyone's consent.
• Save and copy the clip immediately after a crash, and give the unedited file to your insurer.