Dashcams are increasingly recognized as reliable witnesses, providing clear, real-time evidence that helps reduce fraud and enhances road safety, Bader Law said in the report. (ALM archives)

Insurers say there is a 27% drop in disputed claims when dashcam footage is available, according to a recent study by Bader Law.

Dashcams help reduce fraudulent insurance claims by 15%, the data showed, while uncovering fraudulent claims in 20% of cases nationwide.

The National Highway Traffic Safety Administration (NHTSA) also credits the decrease to information provided by dashcam footage, while the Federal Highway Administration (FHWA) says the footage helped resolve 20% of accidents investigated by the administration.

States that have seen positive results from dashcam footage:

  • California dashcams helped resolved 30% of accident disputes.
  • New York dashcams lead to a 25% drop in auto fraud claims.
  • Police officers and insurance companies in Florida use dashcams in around 20% of accident investigations.
  • Texas reports that the usage of dashcam footage has reduced insurance fraud cases by 15%.
Dashcams are increasingly recognized as reliable witnesses, providing clear, real-time evidence that helps reduce fraud and enhances road safety, Bader Law said in the report. “Dashcams provide indisputable evidence in motor vehicle accidents, fundamentally transforming the insurance claims process."

The most common fraudulent locations:

  • Urban areas with heavy traffic — High-density cities with congested roads, e.g., Los Angeles, New York City, Miami. More opportunities for staged accidents.
  • Intersections and traffic signals — Fraudsters may brake suddenly or cause rear-end collisions at yellow lights or stop signs.
  • Highway off-ramps — Sudden traffic slowdowns make it easier to stage accidents.
  • Parking lots — Low-speed collisions in parking lots where fault determination is more challenging.
Meanwhile, eight out of 10 U.S. drivers think auto insurance has become too expensive for the average person.

The rising rates even has high earners making more than $129,000 per year on the move, with 49% shopping for better deals and 53% settling for less coverage than planned in 2024.

Despite the increase in premiums, Josh Damico, VP of insurance operations at Jerry, said 2025 is “poised to be a year of stabilization for car insurance rates.”

“While small rate increases of 2 to 3% are expected as the market returns to normal, this is a welcome shift after the 50% rise in rates over the last three years,” he added. “It is a sign of the market regaining balance and the ideal time for American drivers to explore new car insurance options.”

See also:

NOT FOR REPRINT

© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.