There are a wide range of different techniques that people can use to lower their car insurance premiums almost immediately. Many providers offer deep discounts for going a certain period of time without getting into an accident, for example. Others offer “good grades” discounts to students, discounts for taking steps to make your vehicle safer than it was when you originally drove off the lot, and so much more.
In many ways, it’s all about reducing risk. Insurance in general is essentially a “bet against yourself” — you’re assuming that at some point you will get into a car accident, either through your fault or through the fault of others, and paying for insurance today will be cheaper than paying out-of-pocket for any repairs you’ll need in the future.
Along the same lines, it should come as no surprise that certain insurance providers are actually reducing the cost of premiums for taking one of the safest steps of all — installing dash cameras on your vehicle. On insurance provider in the United Kingdom, for example, is willing to slash rates up to 20 percent if drivers are willing to buy and install a tiny device that costs just £20.
Car Insurance and Dashcams: The Facts
To say that car insurance premiums are on the rise is something of a dramatic understatement. According to one study, average premiums rose by an incredible 14.6 percent in the last year alone. This is a full five times the rate of inflation in the U.K. in particular, which currently comes in at just 2.9 percent.
Across the pond, the average policy can cost drivers up to £755 according to the same study. A large part of this is because cars are getting more expensive and the roads are getting more dangerous at the exact same time. In an effort to reduce their own risk burden and to make the roads safer for everyone, certain providers in the U.K. are offering massive discounts to drivers who are willing to take the plunge and install dash cameras.
Installing dash cameras on your car brings with it a wide range of different benefits that can’t be ignored, but many people don’t realize that this is especially true if you’re an insurance provider. With a small, inexpensive device that records high-definition video of the front (and sometimes the rear) of your vehicle, you instantly have access to all necessary information regarding who is at fault for an accident.
Should liability be disputed and that case goes to a court of law, the dashcam footage will absolutely be admissible as evidence. This will, in theory, lead to a reduction in cases that settle when fault cannot be determined, which in turn will save car insurance providers a great deal of money in the long run in terms of claims that they no longer have to pay out.
As soon as these programs began to go into effect, dashcam sales across the United Kingdom began to soar. One retailer who gave an interview to the U.K. publication The Express said that dashcam sales at his own establishment had increased an incredible 104 percent over the last 12 months alone. Word is spreading fast about the deep savings that one can enjoy through this method, to be sure.
Make no mistake, the insurance providers themselves will likely save a lot more than just 20 percent of the average premium over time, which is why they’re willing to pass on a small portion of these savings to their consumers. The consumers themselves win, however, because they’re able to combat the rate at which premiums are rising in an inexpensive (and almost impossibly easy) way. It’s the textbook definition of a “mutually beneficial” situation and one that will hopefully be adopted by more providers — including those operating in the United States — in the not-too-distant future.