Do Fleet Dash-Cams Lower Insurance?

March 15, 2021 Published by

There is a direct relationship between the use of dash-cams and insurance discounts. Insurance is based on the payment of a specified premium. This is done to guarantee compensation for specified loss, damage, illness, or even death when it occurs. All this is predicated on risk and whether there is a likelihood of the action happening.

The rate of premiums will rise if the insurer feels that the risk is high. Contrariwise, premiums will fall if the insurer feels that the client is not of such a high risk. 

On this front, what is the link between fleet dash-cam and insurance discounts?
An insurance provider generally will reduce their rates when a client is seen to practice means of mitigating the risk. It is therefore advisable for you as the fleet manager to deal with issues such as distracted driving and other risky on-road driving behavior before they cost you. 

Ultimately, insurance companies may offer discounts of up to 10% as long as a dash-cam system is in place. In countries like the UK, some insurers will go up to 30% as an incentive for drivers to install fleet dash-cam systems. 

Some states in the USA are trying to pass legislation that will encourage insurers to offer premium discounts to drivers who use dash-cams. This is where the link between insurance discounts and dash-cam exists. It generally assists in the reduction of client accident rates; false claims and it also saves on administrative time.

Reduced Legal Fees

When it comes to legal fees, think of the defense that you would have to mount. Especially if a claim was a fraudulent one, the billable hours spent on a legal team could be very expensive. On the other hand, if the evidence on a dash-cam exists, the case may be ended quickly. 
If you are certain from the dash-cam recording that a case is of extortion, you are in a favorable position to defend yourself and end up not having to pay legal fees at all.

legal fees

Eliminate Insurance Fraud

Dash-cams help in reducing insurance fraud by capturing on video events that may set off a claim. Statistics according to the Insurance Information Institute (III) approximates that property and casualty insurance companies lose on average $34 billion to fraud annually. 

According to the National Insurance Crime Bureau (NICB), auto insurance fraud makes up the largest segment of that loss. Some insurance companies even offer incentives to clients by giving them discounts on their premiums if they install dash-cams. 

Insurers that do not practice this might increase their premiums by between 10 to 20%. Beware such a high rate increase in insurance premium can amount to ‘Fraud Tax’. 

When it comes to auto insurance fraud, dash-cams can be of help in cases where the No-fault Auto Insurance system is used. It will stop corrupt attorneys and even medical providers from misinterpreting findings and eventually billing the insurer for services that were never rendered. 

Encourage Safe Driving

One of the initial purposes of fleet dash-cams was as a means to monitor driver behavior. To check up on the driver to ensure he adheres to discipline was also another purpose for the dash-cam. 

It has evolved into what we know it today and its various uses, one of which is a video documentation of accidents or collisions. 
Fleet managers actively monitor their drivers to improve their driving capabilities. For new drivers, it is used as a coaching tool to get the best out of fleet managers’ human resources. And for this specific use of the dash-cam system, an insurer will see this as an effort on the employers’ part to be safer on the road. 

If an accident does occur there would be video evidence and matters of the compensation would not drag on endlessly due to lack of evidence. 
Close monitoring of drivers leads to fewer accident incidences and drivers are better-motivated. Simply because a driver knows they are being watched, they will be on their best behavior, and he or she will be more responsible and mindful on the road.

Another purpose of fleet dash-cams is documenting theft or theft attempts. A unit can be switched on manually to begin recording. Other units are more sophisticated. They begin recording if they sense movement. 

For a fleet manager or even a personal vehicle owner, the recording of an attempted theft will be uploaded onto the server for their access. Dash-cam unit will perform the same function in instances of vandalism as well. 

When it comes to accountability and whether a job was carried out properly and within the law, police dash-cams are a good example. It records whether the actions of particular police were justified or not. This also keeps the police responsible while discharging their duty. 

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This post was written by Malcolm Rosenfeld

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