3 Ways a Dash Cam Can Save You Money 

Dash-mounted cameras aren’t only useful to police on patrol or social-media users who put terrible drivers on blast. These devices are worthy accessories for your own car, too. By continuously recording video as you drive – and while you’re parked, with some models – these devices (literally) look out for you in ways that can spare you hassle and save you money.

The evidence a dash cam captures could help you show you weren't at fault for an accident, and so avoid having the mishap trigger a rise in your premiums. In the event the police investigate, the footage might also squelch a costly traffic ticket, both immediately in fines and subsequently through a hike in rates due your damaged driving record.

As those social-media and cop-show videos reveal, dash cams will record video whenever your car is running. But some models also stay on even when you’re parked, to capture images 24/7 – including perhaps to identify who might have vandalized or side-swiped your car. Other dash cams have a second camera that provides footage of the interior of your vehicle, too, perhaps to allow you to monitor a teen’s driving to reduce the odds of a dangerous – and potentially costly – accident.

Here’s a rundown of three ways you can benefit financially from buying a dash cam, along with tips for buying one, which range from as little as $50 for a basic device to $500 for top-of-the-line models.

1. You might avoid being held at fault for an accident

A car accident is a rapid and often chaotic event during which important details can easily be missed or forgotten. A dash cam recording provides an unbiased account of how the mishap unfolded and which party may have been at fault. That, in turn, can affect the way your insurance claim is settled or help determine if a moving violation might have been committed.

If you’re in an accident, it’s critical to save the footage, either by removing the memory card and copying the footage to your computer, or using your dash cam’s cloud storage or mobile app to save the recording. This avoids the risk of later having the relevant portion of the video written over in the device’s storage. Then, when you report the accident to your insurer, let them know that you have dash cam video, should they wish to review it.

The insurance company is likely to have specific instructions on how to submit the footage, such as uploading the file to their portal or emailing it to your claims adjuster. Check on how much of the video they want; chances are, it will be only a short clip (one to two minutes before and after the incident). Include your claim number when submitting the footage, and remember to retain a backup copy of the footage for your own records.

Since the accident is likely to trigger a police investigation, it’s smart to let them know that you have footage, especially if it might reveal wrongdoing by the other drivers. Dash cam footage also can be valuable from an insurance and a legal perspective if you or any of your passengers suffer personal injuries. Video footage that absolves you of wrongdoing can be important evidence in a car accident lawsuit.

2. You could get reimbursed for damage to your parked car

Your dash cam can save you money even if you’re not behind the wheel. A camera that has a parking mode feature will begin recording as soon as it senses motion around a stationary car. That means if you return to your vehicle and find that it’s been damaged in your absence, the footage may allow you to see what happened and who is responsible.

Dash cam footage from a hit-and-run collision with an unoccupied vehicle may capture the fleeing vehicle’s license plate number, make, model or other identifying details. That’s valuable evidence if you want to pursue legal action or file an insurance claim, provided that you carry comprehensive coverage, which covers damage from vandalism.

As with a moving accident, contact your insurer first to discuss next steps. Those might include contacting the police for assistance in identifying the hit-and-run driver, based on information captured by the dash cam.

Similarly, images from a dash cam with a parking mode might be useful in allowing you to identify the perpetrator of vandalism to your car; say, if a pedestrian keys the paintwork. While you might have a harder time identifying the vandal without a license plate to track them down, it’s still worth contacting the police, especially if you recognize the culprit.

If the damage is serious enough to consider making an insurance claim, it will almost surely be on your own insurance, even if the vandal is identified. Unlike collision coverage, where insurers assess fault, claims under comprehensive coverage are assessed on a no-fault basis. Before filing a claim, then, check with your insurer to see if doing so will raise your rates – and if it will, consider if it’s worth it financially.

3. You can make your teen a safer – and cheaper – driver

A dash cam with dual-camera capability that records images inside the car’s interior as well as outside the vehicle lets concerned parents monitor how their teen is driving, via the forward facing camera, as well as their behavior inside of the car as they drive.

Occasionally reviewing that footage can give you an opportunity to give your teen valuable feedback about their skills and practices. While talking about safe driving habits won’t necessarily save you money, it could help a new driver avoid expensive traffic tickets for speeding or texting while driving. It also lowers the odds of your teen being in a potentially dangerous and costly accident.

The footage might also motivate you to have your young driver complete a defensive driving course, which typically triggers an insurance discount. Conversely, if the dash cam evidence suggests your teen is an excellent driver, you could consider switching to a usage-based insurance policy.

These policies use telematics technology to monitor driving habits such as speed, braking, phone use and more. If the driving is deemed safe – by all drivers on the policy – premiums can be reduced by 25% or more. (However, some insurers will raise rates if the telematics date reveals less-than-safe driving, so check with your company about their policy before you sign up.)

Buying and using a dash cam

Dash cams vary significantly in cost, but you can get a basic model for about $50. More elaborate versions, which typically include features like GPS tracking and infrared night vision, can cost up to $500.

In the midrange between those price extremes are models that offer features that can help save you money. Dual-camera models, with a second camera recording the car’s interior, can be helpful to parents who want to monitor what their teens are doing behind the wheel, as well as ride-share drivers who want to record their interactions with customers.

Cameras with motion detection, also known as parked mode, begin to record if they recognize motion around the vehicle, such as a car bumping into yours while you're parked. Some dash cams record audio and video. There are also models that capture details like your speed and your location.

Dash cams record on a loop, deleting older footage to make room for newer video after the device's SD memory card fills up. The length of that loop depends on the storage capacity of that card, which varies widely. If you want to retain footage, you can transfer it to your computer or phone.

The big picture on dash cams

While a dash cam is a small device, it can make a big difference in terms of both safety and the costs of car ownership. They provide unbiased evidence in the event of an accident, clearing up discrepancies with drivers' version of events, and providing evidence that can track down the perpetrator of a hit-and-run accident. They can help you get the compensation you deserve if you suffer a personal injury in an accident, and they’re a great way to monitor a teen driver.

Particularly if you or other household members spend a lot of time on the road, a dash cam can be well worth the investment, providing useful insights along with peace of mind.