Is There a Car Insurance Discount for Having a Backup Camera?
Last Updated on November 24, 2021
Backup cameras can reduce the risk of a collision. Anything that reduces risk could reduce car insurance premiums.
Insurance is about risk. A backup camera can lower the chance of colliding with a vehicle, which means your insurer is less likely to pay a claim. Theoretically, insurers could offer a discount for having a backup camera.
However, no major car insurance company currently offers a discount for having a backup camera.
Today, we’re explaining everything you need to know about car insurance discounts for backup cameras, including how much you could save with a backup camera.
Rear-View Cameras Are Standard on All New Vehicles
Backup cameras are statistically proven to reduce the chance of a collision. That’s why they have been a standard feature on all new vehicles since 2018.
Starting on May 1, 2018, the NHTSA has required backup cameras on all new vehicles sold in the United States. The NHTSA implemented this change to reduce the chances of backing up over children and the elderly and colliding with other vehicles.
Statistically, backup cameras have been shown to reduce risk and save lives. However, that doesn’t mean you get a car insurance discount for your backup camera.
Benefits of a Backup Camera
Backup cameras are standard on new vehicles because they’re proven to save lives. Studies show that backup cameras reduce the chance of colliding with a toddler or elderly person behind your vehicle, for example. These people may not recognize a car backing up. With a backup camera, you can avoid a devastating accident.
Other benefits of a backup camera include:
- Easier to park, particularly when parallel parking or backing into a spot
- Reduce the chance of colliding with an elderly person or child behind your vehicle
- Lower the risk of hitting a toy, object, bike, or another vehicle when reversing out of your driveway
- Get a visible and audible warning for any obstruction behind your vehicle
For all of these reasons and more, backup cameras are standard on all new vehicles. However, that doesn’t mean they reduce your car insurance premiums.
No Major Insurer Offers a Backup Camera Discount
Don’t expect to save money on car insurance for having a backup camera.
However, no major insurer offers a discount for having a backup camera.
It’s standard procedure for insurers to reward drivers who install safety features on their vehicles. Insurers often provide discounts for anti-theft systems, for example, because it increases the chance of recovering a vehicle after it’s stolen.
Studies show that backup cameras reduce the risk of a collision. However, insurers are still hesitant to provide discounts specifically for having a backup camera. As of 2021, no small or large insurance company in the United States provides a specific discount for having a backup camera, according to our research.
Backup Cameras Reduce the Risk of Minor Collisions – Not Major Collisions
Why don’t insurers provide a discount for backup cameras? Statistically, backup cameras prevent minor collisions – not major accidents.
A backup camera could reduce the chance of you nudging someone’s bumper while parallel parking, for example. It’s a minor collision unlikely to lead to significant damage or costly insurance claims.
It is possible for a backup camera to reduce the chance of colliding with a child or an elderly person behind your vehicle when backing up. However, these incidents are rare. They’re serious incidents when they do occur, although they’re rarer than other collisions.
Because backup cameras prevent minor accidents, insurers are hesitant to provide steep discounts on vehicles with backup cameras. However, if there’s significant proof that backup cameras reduce the risk of serious collisions, then insurers will take note.
Backup Cameras Could Lead to Indirect Car Insurance Savings
No major insurer offers a discount specifically for having a backup camera. However, you could still indirectly save money on car insurance by having a backup camera.
Some of the indirect savings from a backup camera include:
Lower Accident Rates for your Vehicle: Insurers calculate accident data based on your vehicle. Some vehicles have higher accident rates than others. Some vehicles have better crash safety ratings. If your vehicle’s backup camera reduces the chance of a collision, then your vehicle could have a lower risk than other vehicles, which will lower the cost of your car insurance.
Cheaper Premiums Companywide: Car insurance claims are expensive for insurers, and they can lead to higher costs across the entire company. If a car insurance company has to pay a $10 million settlement because a vehicle ran over a child in the driveway, then all policyholders lose because the insurer has to raise rates. Backup cameras reduce the chance of an accident, which should lead to lower insurance premiums.
Cheaper Insurance Premiums for You: Having a backup camera will reduce the risk of you causing an accident, hitting another vehicle, or causing other damage. Insurers give big discounts to drivers with a safe record. A backup camera could help you maintain that safe record.
Other Safety Features That Could Save Money on Car Insurance
Insurance companies do not offer car insurance discounts for backup cameras. However, they could offer discounts for other safety features.
Other safety feature discounts available include:
Daytime Running Lights: Required in some countries, daytime running lights are proven to reduce the risk of a collision, particularly at northern latitudes (with more darkness) or in regions with bad weather. Some insurers now offer a discount for daytime running lights.
Traction Control Systems (TCS): Traction control systems automatically detect when your vehicle is sliding, then adjust movement to increase the chance of gripping the surface. Electronic stability control (ESC) systems work in a similar way. Some insurers offer discounts for TCS’s and ESC’s.
Anti-Lock Brakes (ABS): Anti-lock braking systems (ABS) have been standard on new vehicles for decades. Some insurers continue to offer ABS discounts, although most insurers do not.
Passenger Airbag Discounts: Driver airbags have been standard on all new vehicles for decades. However, passenger and side airbags are not standard, and they could save you money on car insurance.
Remote Shutdown Systems: Remote shutdown systems allow police to remotely deactivate your vehicle after it was stolen. Some insurers provide a discount for active anti-theft devices like a remote shutdown system.
Conclusion – Backup Camera Insurance Discounts
There is no insurance discount for having a backup camera or rear-view camera. Although these cameras may reduce the risk of a collision, insurers will not provide a specific discount for having a backup camera.
Backup cameras have been a standard feature on every new vehicle sold since 2018. They’re no longer unique. However, if they’re proven to reduce the risk of serious incidents in the future, then insurers could add a discount for backup cameras.
Contact your insurer to ask about discounts for backup cameras and other safety features.