Backup Camera Car Insurance Discounts [2023]

Will installing a rear-view camera on my car affect my insurance rates? A few years ago the news media began reporting the fact that the federal government was considering mandating rear-view cameras on every new vehicle sold in the United States.

As of May 1, 2018, rearview cameras are required in all new vehicles according to the NHTSA. The plan is to use these cameras in addition to other features such as Automatic Emergency Braking as standard vehicle features to ensure vehicles are safer by 2022.

Rearview cameras are thought to prevent accidents such as backing up over children or elderly.

These cameras can help increase a driver’s range of vision, but they are not replacements for using a rearview mirror and physically turning around and checking your surroundings also. Weather and other issues may affect feature performance, so continue to be cautious.

Make sure to always read the owner’s manual of your vehicle and your camera for information about feature limitations. Also, if you opt to install the camera yourself rather than paying for professional installation, read the instructions carefully.

Some backup camera kits come with USB connectivity, while others use your car’s cigarette lighter for power. The latest models use a digital wireless signal.

Right now, rearview cameras do not qualify most drivers for car insurance discounts, but they are good safety tools nonetheless. Use our free comparison tool to make sure you have all the available discounts on your policy!

What is a car insurance company’s view of the rear-view camera?

Car insurance companies are always looking for ways to make cars and driving safer. It’s just common sense.

The safer our driving activities become, the less money the insurance companies pay out in claims every year, and the better off we all are.

Therefore, it is a standard procedure for insurance companies to reward safe driving with safety feature discounts for those cars that have them. Conversely, cars with no safety features pay higher rates.

As far as the backup camera installation is concerned, some studies suggest such devices make driving safer. They also tend to reduce the number of bumper damage accidents, especially on larger vehicles and motorhomes.

But since such accidents usually generate little or no damage, the financial implications for insurance companies are minimal. At this point, many are hesitant to offer significant premium reductions merely because a car has a backup camera.

Insurers will most likely wait to offer discounts for rearview cameras until there is significant proof that these backup cameras greatly reduce claims from accidents. However, they can help you to drive safer and then you may be eligible for a safe driver discount.

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Which feature on your car is worth a discount on your car insurance?

There are certainly some safety features that have been statistically proven to reduce auto accidents or the severity of damage realized.

These driver assistance features will most likely help you save money on your car insurance:

• ABS – In areas with severe winters, one of the leading causes of accidents during the winter months is skidding or sliding on ice and snow. Such skidding and sliding often occur when drivers apply the brakes too hard in slippery conditions. The ABS braking system helps to reduce the risk of such accidents by not allowing a car’s brakes to lock up, regardless of how hard the driver hits the pedal.
• Traction Control – Traction control helps to reduce the risk of sliding on black ice and running your car off the road. Like the ABS braking system, cars with traction control systems can receive significant discounts on insurance rates.
• Airbags – If you have airbags on your vehicle, an accident is much less likely to cause serious injury, so your insurance provider is less likely to have to pay for expensive medical bills.
• Daytime Running Lights – Running lights and other lights on the exterior of your vehicle make your car more visible to other drivers, and this is another feature that reduces your chances of being in an accident, so it may entitle you to a daytime running lights discount.

Are there any negatives to the rear-view camera as far as car insurance is concerned?

Believe it or not, there are two legitimate concerns regarding the rear-view camera from the insurance perspective:

• These cameras might become the target of enterprising thieves
• U.S. car manufacturers are already saying that adding backup cameras will add somewhere around $150 to the cost of a car

Both of these facts mean that the value of the car being insured will increase as the mandated cameras are installed on new cars. If we apply this to our knowledge of how car insurance premiums are calculated, we understand that as the value of a car increases so do insurance costs.

Every time we add a new device that raises the value we also add to the cost of replacing or repairing that vehicle in the event of a crash.

Adding a rearview camera — and the GPS system required to use it properly — means higher prices for insurance policies, especially for those who wish to include full coverage car insurance on their vehicles.

Rear-view cameras installed in all new vehicles will become a reality, and hopefully, this will, in fact, reduce accidents and save lives. However, it is pretty clear that you and I will probably not realize any cost savings by having one of these cameras installed in our vehicles.

With or without a rearview camera, you can compare FREE online car insurance quotes by entering your ZIP code now!

Case Studies: Backup Camera Car Insurance Discounts

Case Study 1: SafeDrive Insurance

Mary Thompson, a resident of New York, had recently purchased a new SUV equipped with a backup camera. She contacted her insurance provider, SafeDrive Insurance, to inquire about any potential discounts. SafeDrive Insurance confirmed that they offer a 10% premium discount for vehicles with backup cameras.

After providing the necessary documentation and proof of her vehicle’s safety features, Mary received a revised insurance policy with the discounted rate. This discount not only enhanced Mary’s confidence in her vehicle’s safety but also saved her $300 annually on her car insurance.

Case Study 2: SecureAuto Assurance

John Davis, a college student from California, was thrilled when he bought his first car, a compact hatchback. The vehicle came with a backup camera, and John wanted to make sure he was taking advantage of any available insurance discounts. He reached out to SecureAuto Assurance, his car insurance provider, to inquire about backup camera discounts.

SecureAuto Assurance informed John that they offered a 15% discount on premiums for vehicles equipped with backup cameras. With the discount applied, John’s annual insurance premium decreased by $150, providing him with substantial savings while ensuring added safety on the road.

Case Study 3: SafetyFirst Insurance

David Johnson, a small business owner in Texas, relied heavily on his pickup truck for his daily operations. When it was time to renew his insurance policy, David learned about the potential benefits of having a backup camera. Intrigued, he contacted SafetyFirst Insurance, his insurance provider, to explore any available discounts.

SafetyFirst Insurance informed David that they provided a 12% discount on car insurance premiums for vehicles equipped with backup cameras. David quickly realized the long-term cost savings and safety advantages and decided to have a backup camera installed in his truck. The discount lowered his annual insurance expenses by $240, making it a worthwhile investment for his business.

Case Study 4: ProtectDrive Insurance

Sarah Martinez, a mother of two from Florida, was concerned about the safety of her family when driving her minivan. She decided to upgrade her vehicle and purchased a new minivan model equipped with a backup camera. Curious about potential insurance discounts, Sarah contacted ProtectDrive Insurance, her trusted insurance provider.

ProtectDrive Insurance informed her that they offered a 5% discount on car insurance premiums for vehicles equipped with backup cameras. Though the discount seemed modest, Sarah realized that over time it would result in significant savings. The discount lowered her annual premium by $100, giving her peace of mind about her family’s safety while driving.

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