Could a dashcam reduce your car insurance?

Dashcams are on-trend right now. According to research from retail analytics company GFK, sales of dashcams have increased by 671% over the past two years. There are currently 2.6 million dashcams on UK roads and this figure is predicted to double in the next two years.

But why?

The three main reasons for getting a dashcam are:

  • To reduce insurance premiums
  • To record what happens in case of accident or other incident
  • To protect against theft and damage

Linked to the last two points, a recent development is that you can now send dashcam footage directly to the police.

How does a dashcam work?

A dashcam is an in-car camera system that makes a video and audio recording of your journey. Some dashcams also have a parking mode, which starts recording whenever an impact is detected. So for example if your car is parked and someone bumps into you the dashcam will record this for you.

There are 3 main types of dash cam:

  • Front view dashcams: these are the cheapest to buy, but only record what is happening in front of you, not behind you.
  • Front and rear view dashcams: these record the view both in front of and behind your car. Given that most accidents involve rear-end collisions it could be worth the extra outlay to get a front and rear view dashcam.
  • Cabin view car dashcams: these are useful for monitoring what has happened inside a car, so are mostly used in taxis and other car services.

Which car insurers offer cheaper insurance for dashcams – and why?

According to the dashcam manufacturer Nextbase, drivers with a dashcam installed have been proven to be 33% safer behind the wheel. This was reinforced in 2014 by the insurer Swift cover, who started to offer insurance discounts of 12.5% off premiums for people who owned a dashcam, because it felt that dashcam users are likely to be “more careful on the road”.

There are now around 41 insurers which offer a discount to dashcam drivers of between 10-15%. They include Admiral, Direct Line, Axa, RAC, Hastings and Adrian Flux. Sure Thing! have gone one step further and offer a free dashcam with certain policies.

As well as dashcams helping drivers to improve the way they drive, and therefore become safer drivers, insurers also value dashcams because of their ability to indicate who was at fault in a car accident. Dashcam footage can help to resolve any dispute quickly and determine who needs to pay.

If dashcam footage proves that the other party was at fault, this may mean that do not have to pay your excess, and it could also help to protect your no claims discount (NCD). It can help your insurer to settle a claim quickly and without hassle.

So how much does a dashcam cost?

Whilst a top of the range dashcam – eg Nextbase 4K with HD recording, GPS and Wi-Fi – could cost around £250,  there are a number of very reasonable models on offer in the price range of £25-50. According to Simon McCulloch, Director at

“The savings that a customer could receive on their car insurance may ultimately mean that the costs will be repaid relatively quickly, particularly for younger drivers and those with high premiums” .


So it looks like a dashcam could be a good investment that will ultimately save you money.

If you need help with the upfront cost of a dashcam then Logbook Loans could help. We offer a range of short term loans – including bad credit logbook loans that could enable you to get your dashcam now then repay the money back from what you will save on car insurance. This gives you the security of a dashcam and instant savings. Click here for more information or to apply online.