Do Dash Cams Lower Insurance in Australia? What Really Saves You Money in 2026

If you have just fitted a dash cam, or you are about to, there is a fair chance you are hoping it will trim your next insurance bill. Unfortunately in most cases, most Australian insurers in 2026 will not drop your premium just because you have a camera on the windscreen. The good news is that a dash cam can still save you real money, just not in the way most people assume.

So do dash cams lower insurance premiums, or not?

Here is the honest picture. When comparison site Canstar checked the market, only one insurer even asked whether a car had a dash cam at quote time. Big names like AAMI and Suncorp have said plainly that a dash cam does not change your premium, because it does not make a crash less likely to happen. A small number of providers have run promotions or offered modest reductions, some reported at around 4 percent, but that is the exception, not the rule.

In plain terms, insurers treat a dash cam as a tool for proving what happened, not a tool for preventing a prang. That is why the discount rarely shows up on the quote.

Where a dash cam actually saves you money

This is the part that matters. The savings from a dash cam turn up at claim time, not at renewal. Here is how.

You can avoid paying your excess

Your excess is the set amount you chip in when you make a claim, often several hundreds of dollars. If someone else hits you and your footage clearly shows you were not at fault, your insurer can waive that excess or recover it from the other driver. That is money straight back in your pocket.

You protect your no-claim bonus

A no-claim bonus is the discount you build up for every year you drive without making a claim. One at-fault claim can knock it back and push your premium up for years. Clear proof that you were not to blame helps keep that bonus, and your rating, intact.

Your claim gets sorted faster

When liability is obvious from the video, there is far less back-and-forth with assessors. That means quicker repairs and less stress. For Aussie drivers dealing with a hit-and-run in a shopping centre car park, a merging mess on the M1, or a roo strike on a country highway, that kind of proof on Australian roads is worth its weight in gold.

Pro Tip: After any incident, grab a copy of the footage straight away. Don't leave it recording for the remainer of the weekend without a backup as the video will eventually get looped and recorded over. Hand your insurer the raw file with its time, date and location, not a screen recording or a social media copy. Original footage carries far more weight.

Are dash cams even legal in Australia?

Yes. Dash cams are legal to own and use in every state and territory, as long as they are mounted so they do not block your view of the road. That part is a genuine road rule, not just a suggestion.

Rideshare can be a little different - As audio is where you need to be a bit careful. Across Australia, recording a private conversation without everyone's consent can breach state surveillance laws. Filming the road ahead is fine. Recording a chat inside the cabin without telling your passengers is the grey area. If you are unsure, the simplest fix is to switch cabin audio off, or just let people know it is on.

What features actually help at claim time?

You do not need the most expensive camera to be covered. You need footage an assessor can actually use. Focus on these:

• Clear number plate capture. A sharp plate is the single most useful thing your camera can record. This is where a good low-light sensor and a CPL filter (a polarising filter that cuts windscreen glare, a bit like sunglasses for your camera) earn their keep.
• An accurate time and date stamp. It anchors your footage to the moment it happened.
• GPS logging. This records your speed and exact location on the clip, so there is no argument about how fast you were going or where you were.
• Parking mode. This keeps the camera watching while you are parked and catches hit-and-runs and car park dings. It usually runs off a hardwire kit, a cable that powers the camera straight from your car's fuse box.

How to get the most out of your dash cam

• Ask your insurer directly. At renewal, ask if declaring your dash cam changes your excess or unlocks any claims benefit or partner offer. It costs nothing to ask.
• Mount it properly. High and central behind the mirror, inside the wiper's sweep, with tidy cables and a clear view of the road.
• Back up important clips. Save them to your phone or the cloud with the original timestamps intact.
• Set parking mode sensibly. Enough sensitivity to catch a real bump, not so much that it fills the card with false alarms.

If you would rather have it fitted for you, a tidy professional job keeps everything neat and out of the way. You can find a local fitter through our dash cam installer finder.

The bottom line

So, do dash cams lower insurance in Australia? Not usually on the quote, but they quietly pay for themselves the first time you need to prove you were not at fault. If you want a hand picking a camera that ticks the boxes insurers actually care about, that is exactly what we are here for. Have a look through our range of tested dash cams, or get in touch with Michael or Harrison through our contact page. No pressure and no worries, we will point you to the right setup for your car.

FAQ

Do dash cams lower car insurance in Australia?

Usually not directly. Most insurers will not cut your premium for having one. The savings come at claim time instead, by helping you avoid an excess and protect your no-claim bonus.

Which insurers give a dash cam discount?

Very few. Most, including AAMI and Suncorp, say a dash cam does not change your premium. A handful have run promotions or small reductions, so it is always worth asking your own insurer at renewal.

What features matter most for a claim?

Clear number plate capture day and night, an accurate time and date stamp, GPS speed and location, and parking mode for hit-and-runs.

Is it legal to record audio in my car?

Filming the road is fine everywhere in Australia. Recording a private conversation without consent can breach state surveillance laws, so switch cabin audio off if you are unsure.

Will a dash cam affect my insurance if I fit it myself?

No, as long as it is fitted safely and does not block your view. A tidy hardwire install with a low-voltage cutoff (a feature that stops the camera draining your battery flat) is the safest way to run parking mode.

Last updated: July 2026.

Sources

• Canstar, Could installing a dash cam get you cheaper car insurance?
• Budget Direct, Do I get cheaper car insurance with a dashcam?
• Youi, Do dashcams lower your car insurance?
• NRMA, Dashcams 101: what they do, where to install and what to buy
• RACV, Dash cam guide: buying, operation and road rules