Could a dash cam save you money on van insurance?
More and more van drivers are deciding to install dash cams to help protect them when they’re out and about. But can they save you money on your van insurance? We’ve investigated this further.
Many SMEs (small and medium sized enterprises) spend a lot on their van insurance because their van or fleet of vans will be driven by a number of different drivers, with varying levels of experience. This can increase the overall cost of van insurance.
If you’re thinking about installing a dash cam for your van or commercial fleet, it could help you save money on your van insurance.
If you’re thinking about installing a dash cam for your van or multiple cameras across your commercial fleet, it could help you save money on your van insurance.
Find out how a dash cam can help you reduce your van insurance costs in our guide below.
Why does it cost more to insure a van than a car?
First off, let’s look at the costs involved in van insurance. There are several reasons why van insurance can be more costly compared to insuring a car, including the time spent on the road and the fact that there will quite often be multiple drivers using the vehicle.
Many people who are new to van driving or who have just started up their own business have discovered the hard way that the cost of insuring their van has worked out higher than they anticipated.
Common causes for expensive van insurance:
- The purpose for which the van is used
- The model and brand of the van
- The experience and age of the van drivers
- The type of insurance required for the van
- The location in which the van will be driven
The purpose for which the van is used
Whether your van is used for work or private use - and the type of work that your business does - will affect the cost of your van insurance. For instance, tradespeople who carry their own tools and equipment inside their vans will required a different type of cover from a food transportation or courier delivery van. You can discover more about commercial van insurance here.
The model and brand of the van
The make and brand of your van can and will have an impact on the overall cost of your van insurance. The larger and more powerful the van’s engine, typically the more expensive it will be to insure, so it’s advisable to take a little time to think about which type of van is best suited to your business needs before you purchase one.
The van drivers’ experience and age
The fact of the matter is that young and inexperienced van drivers have a higher chance of being involved in a road accident than older or more experienced van drivers. This is what the van insurer will take into account when you apply for a quote, because they will work out that there is a higher ‘risk’ of road accidents, which will be reflected in the price of your insurance policy.
The location in which the van will be driven
The location where you will be driving your van and keeping it will affect your van insurance policy and could make it more expensive to insure. This is because it is related to the ‘risk’ that your van could be damaged or stolen. Urban areas with higher crime rates are locations that carry higher insurance costs compared to quieter, rural areas with a reduced crime rate.
What are the benefits of installing a dash cam in your van?
There are many benefits that dash cams can bring for van drivers, but many people are still unsure as to how effective and worthwhile dash cams are, so we’ve outlined some of the benefits of installing a dash cam below.
- For fleet-owners, they monitor your drivers and promote safe driving
- They can protect your van
- They can provide evidence for your insurers
- They can help to reduce your insurance premiums
Monitor your drivers and promote safe driving
Dash cams can provide evidence should your team’s driving be called into question in relation to a road accident. By recording your van drivers when they are on the road, they will also be able to improve their own driving, which can help to reduce your van insurance premiums and reduce the chances of having a road accident.
If you’ve paid for your van drivers to complete driver training, they can monitor their progress via the dash cam footage when they play it back, which helps them to improve their driving skills. This could also help you to reduce the costs of your insurance premium, if they are safer on the roads and less likely to cause or be involved in a road accident.
Protect your van
The dash cam can help protect your van from accidents when it’s parked, because it is able to continue filming when the van is switched off and the driver is unloading or with a customer.
If your van is affected by a theft or incident when it is parked, the dash cam might capture the angle on camera and send it straight to your driver’s phone, so that they can take action and you’ve got the evidence you need in a claim.
Provide evidence for your insurers
If your van is involved in a road accident or the driver is a witness to one, having a dash cam can help in insurance claims by providing real-time footage of the incident, which can prove especially useful if the claim goes to court.
Many van drivers can be affected by crash-for-cash scams, which have become more common in recent years.
Having this back-up plan can reduce the chances of you having to pay out if the accident was not yours or your van driver’s fault, thus reducing the cost of your van insurance premium.
Many van drivers can be affected by crash-for-cash scams, which have become more common in recent years. These fraudulent insurance claims can be eliminated if your van is affected, by installing a forward-facing camera in your van, which can capture a driver suddenly hitting their brakes on purpose, resulting in a collision.
There has recently been a higher instance of commercial vehicle drivers proving their innocence via forward-facing dash cam footage, which has also prevented their employer’s van insurance premiums from going up.
Reduce the cost of your insurance premiums
By taking steps to install a dash cam for your commercial fleet or van, you can help to reduce the cost of your van insurance premiums. Premiums can raise when commercial vehicles are involved in road accidents or crash-for-cash scams.
By providing your van insurers with dash cam footage, you can help to prove your van drivers’ innocence, and the insurers can recover the cost of compensation from the other party. The insurance industry has already taken notice of the benefits of installing dash cams and some are even offering their customers lucrative discounts when they choose to install them.
To find out if you can reduce the cost of your van insurance by installing a dash cam, you should contact your insurer. A lot will depend on the insurer’s company policy, but you can always shop around to find an insurer who will offer discounts on policies for dash cam installations.
Caroline Ramsey is a content creator who specialises in personal finance. More than a decade of working in editorial teams, she offers highly tailored content covering a number of topics. Read more