Embracing Dash Cams May Reduce Insurance Premiums
Currently the insurance industry utilizes telematic systems primarily for inexperienced drivers, having this technology fitted to a policyholder's vehicle reduces the person's premium. The technology has only been embraced by most UK Insurers for a few years and is very much in its infancy. At present fitting a full telematic system to each vehicle insured under a fleet policy would not be cost effect for either the insurer or the insured. However at present some fleet client are researching the use of in-car camera's to see if this would bring down their insurance costs.
A dash cam provides video evidence of an accident, including details of the speed the vehicle was travelling which could prevent personal injury claims. The footage from the camera would be vital in showing which party is at fault for the accident. The information is retained on a SD card or on some models the footage is sent automatically to the insurer or the policyholder's fleet manager. Having them fitted in a vehicle shows an insurer that a client is taking a proactive step in risk management and some insurers will reduce the premium if the technology is present in a company's vehicles.
The Dash cam acts as an impartial witness and assists in the claim being settled quicker as it can prevent disputes in liability. As Richard Browning, a director at Nextbase, a provider of dash cam's commented recently “Having an independent witness is a key benefit as it avoids split liability claims and helps to protect insurance costs from going up when you can prove that your driver is not at fault” According to figures released by Nextbase, the average time for a claim to be settled is around six weeks, but having the footage from a dash cam can reduce this to under a week.
Some in the insurance industry are calling for the technology to be made mandatory due to their benefit in assisting with claim and also their potential to prevent fraudulent claims from being successful. Liam Chatfield from First Insurance Solutions Ltd commented that “There are so many false claims made I wouldn't be surprised if they become mandatory very soon or manufacturers start fitting dash cams as standard in their cars”.
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Author: Ryan Hinegan