Do dash cams bring fleet insurance premiums down?
Sales of dash cams have doubled in the last 12 months. There have been various headlines about drivers slashing 20% from motor insurance costs by having one installed. Not surprisingly then, organisations requiring fleet insurance or even those running courier services, could be excused for getting excited.
It would seem that having in-cab cameras could help to cut the cost of insuring commercial vehicles, year on year.
Need to play the long game
However, the insurance sector has warned companies that they may have to wait for awhile before they reap substantial financial benefits. Not least as much depends on how effective in-cab technology proves in reducing accidents.
Now that one in 10 vehicles has a dash cam, motor industry pundits believe that it will start to reduce the numbers of crashes and car crimes on the road.
The theory is, that knowing you are being “watched” by other drivers, will encourage more responsible attitudes to road safety. Dash cam footage is already making headlines to help solve crimes and proportion blame. It is also being used to halt the illegal activities of the “cash-for-crash” criminals.
Premiums based on claims experience
The physical presence of an in-cab camera system in itself, may not be enough to make a sizable difference to courier fleet insurance premiums. The industry still measures against actual or likely claims. Asking for a reduction in premiums based on a hoped-for decrease in accidents may prove a little premature.
Instead, organisations operating fleets of vehicles are encouraged to make the dash cam technology part of an overall risk management strategy. As claims numbers and values drop, fleet insurance premiums will also fall.
Discussions with insurer
It is worth having discussions with your insurer to update them on any changes you are making to the may you manage vehicle risks. There is sometimes potential to adjust premiums if they are convinced that the claim forecast will be substantially improved.
However, as road safety improves over time and the enhanced performance of your own drivers can be evidence, you can go back to your insurer and show them the impact of your well-managed fleet. This could then warrant a premium reduction and potentially a lower excess level too.