Does Car Tech Help You Get a Better Insurance Rate?
More drivers in Canada are equipping their vehicles with dash cams, telematics, and other smart devices. They can improve safety, provide evidence in case of an accident, and even influence car insurance premiums.
But does car tech actually help you get a better insurance rate?
How dash cams impact insurance rates
Let’s take a look at how car insurers view these technologies and whether they can lead to savings on your auto insurance.
Dash cams are widely used to record road incidents, offering valuable evidence in accidents, fraud cases, and disputes. In Canada, though, most insurance providers do not directly offer discounts for having a dash cam. That said, dash cams can still benefit policyholders in the following ways:
Faster claims processing: If you’re involved in an accident, video footage can help prove fault and expedite the claims process, reducing disputes.
Protection against fraud: Dash cams help protect drivers from fraudulent claims, such as staged accidents or false liability accusations.
Potential for future discounts: While discounts aren’t common now, the increasing adoption of dash cams may encourage car insurers to offer incentives in the future.
The role of telematics in insurance savings
Unlike dash cams, telematics programs - often referred to as usage-based insurance (UBI) - are actively rewarded by insurers. These programs use a device or mobile app to monitor driving habits, including:
- Speed
- Braking patterns
- Acceleration
- Time of day you drive
- Overall mileage
Drivers who exhibit safe habits, such as smooth braking and staying within speed limits, can qualify for discounts of up to 30% with certain insurers.
Other in-car technologies that can impact auto insurance rates
Beyond dash cams and telematics, other vehicle technologies can contribute to safer driving and potential insurance benefits:
Advanced driver assistance systems (ADAS): Features such as automatic emergency braking, lane departure warnings, and blind-spot monitoring can reduce accidents, potentially leading to lower premiums.
Anti-theft devices: GPS trackers, immobilizers, and alarm systems can deter theft, which may qualify you for a discount.
Connected car services: Some automakers offer built-in connectivity that alerts emergency services in case of a crash, which could be viewed favorably by insurers.
Should you invest in car tech?
While a dash cam alone won’t automatically lower your premium, it can provide valuable protection in the event of an incident. That said, if you’re looking for insurance savings, enrolling in a telematics program or ensuring your vehicle is equipped with safety features is the best approach.
Before investing in any car tech, check with your insurance provider to see which devices or programs qualify for discounts. As the industry evolves, insurers may introduce more incentives for drivers who embrace technology to improve safety on the road.
While dash cams provide peace of mind and legal protection, telematics programs and vehicle safety features are the real game-changers when it comes to reducing insurance rates.
As technology continues to shape the future of auto insurance, staying informed and taking advantage of these innovations can help you become a safer driver and potentially lower your premiums.
