Back to Blog

Does A Dash Cam Lower Insurance?

Insurance Benefits of Installing a Dash Cam

Every year, there are is an average of 300,000 car accidents in Canada. For many drivers, that means an increase in car insurance premiums, even when the accident wasn’t their fault.

Many drivers don’t realize that installing a dash cam can clear up confusion after a car accident. When it comes to filing insurance claims, this piece of evidence can become crucial.

Can dash cam installation lower your insurance premium? The answer is complicated, but we’re here to explain everything there is to know on the subject.

When you have a dash cam running, the second you hit the road, you’re going to capture footage of any accident that your car is in. This can establish who was at fault, limiting the possibility that another driver can falsely accuse you of causing an accident.

This becomes important during the claims process. Oftentimes, the driver responsible for a car accident will have to cover related damages using their own insurance. This, in turn, will raise their monthly premiums.

By having proof that you didn’t cause an accident, you can keep your insurance costs low and avoid paying for damages that weren’t your fault.

Read on to learn more about whether or not there’s a dash cam insurance discount in Canada.

Are Dash Cams Legal in Canada?  

As long as your dashcam is installed properly and doesn’t obstruct your view, dash cam installation is legal in Canada. This is because most of Canada’s streets are public property, and no private ownership preferences or rules apply.

Keep in mind that if your dash cam comes equipped with a microphone and you pick up passengers in your car, you have to be wary of “eavesdropping.” You can either inform your passengers of the microphone or mute the microphone so it doesn’t record audio.

How Do Dash Cams Work?  

A dash cam (aka dashboard camera) is a small device that you can install in your front, side, or rear window. This device can pick up digital recordings of your surroundings and runs continuously while

Read More: How Does A Dash Cam Work?  

So, Do Dash Cams Lower Insurance in Canada?  

Installing a dash cam in your car in Canada will not lower the cost of insurance from the start. It will not immediately impact things like your monthly premium or your deductible.

However, it may prevent your insurance rates from going up. When drivers are considered at fault for a car accident, the insurance company will consider them a bigger liability. As a result, they will raise the out-of-pocket cost for that driver to remain insured.

Do You Get a Lower Premium If You Have a Dash Cam?  

As an insured driver, you are responsible for paying your premium each month to retain insurance coverage. This premium can go up when you have to file a claim, indicating to your insurance company that you or your car are a liability. It can also go down if you take steps to become a safer driver.

Dash cams do not fall under the category of taking steps to become a safer driver. While they come in handy in the event of an accident, installing a dash cam will not lower your insurance premium.

How Can A Dash Cam Help Lower Your Insurance?  

How can a dash cam keep your insurance premium low? Think of a dash cam as a backup insurance policy, protecting you against the possibility of being held responsible for an accident you didn’t cause. Let’s take a closer look at some of the ways that a dash cam functions like a backup insurance policy.

Helps You Prevent Insurance Fraud  

Believe it or not, there are drivers, cyclists, and pedestrians that stage accidents. The goal is to make it appear like they were a victim of an accident so that they can cash in on the driver’s insurance policy. This is insurance fraud, and a dash cam can capture their activity and establish that they put themselves in harm’s way on purpose.

Helps You Prove When Not At Fault In An Accident  

It is not uncommon for two drivers to get into a dispute about who caused an accident. When you have a dash cam running, you capture the moment of the accident. This footage can often establish what happened and who was at fault, helping you to prove that you were following the rules of the road.

Are Dash Cams Considered to Be a Modification?  

Some insurance companies will raise the cost of insurance when drivers modify their cars in a substantial way. This tends to apply to extreme modifications, such as lifting the car with oversized tires or swapping out the motor with something new.

On rare occasions, an insurance company might consider a dash cam a modification and raise the cost of insurance. However, this is not a common practice in Canada.

Does Insurance Cover Dash Cam Installation?  

Will your insurance company cover the cost of your dash cam installation? Some insurance policies come with a policy limit for new electronic equipment that wasn’t provided by the manufacturer. If you haven’t used up your policy limit and dash cams are included, your insurance may provide coverage for your dash cam.

Add Security To Your Driving With A New Dash Cam  

Does dash cam installation come with an insurance discount? While you won’t get a direct dash cam insurance discount in Canada, it can function as a backup insurance policy that will protect you from increased costs after an accident.

Looking for a dash cam in Ontario? We’ve got you covered. Contact us to learn more about our products and to get a quote so that you can make an informed choice.


About AudioMotive

For over 10 years, AudioMotive has and continues to be, Ottawa’s premier vehicle upgrade experts. With more than 25 years of combined industry experience, we proudly specialize in all things related to HID lighting and mobile electronics sales and installation.