Car Insurance Fraud: How A Dashcam Will Protect You and More

Vehicle owners in South Africa are always at risk of theft, hijackings, accidents, vehicle damage from bad weather such as flooding or hailing, or even their car being intentionally vandalised by someone else, and that’s why many people opt to get car insurance and tracking devices to protect and secure them when unexpected things happen.

Sometimes drivers can also become victims of fraud and scams that put not only their lives at risk but also their pockets and car insurance.

Car insurance fraud is on the rise in South Africa, and Cartrack vision cameras are the one onboard tool you need to protect yourself and your business from such scams.

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How dashcams protect you from car insurance fraud

Car insurance fraud is not a new type of scheme, as vehicle owners and sometimes pedestrians have been known to cook up scams to either reduce their insurance premiums or receive a larger claim payout from the insurer. In South Africa, some pedestrians also cook up scams to claim from the Road Accident Fund (RAF) for personal injury.

According to a BusinessTech news article on car insurance fraud, it is estimated that approximately 32% of insurance claims are false. RAF has also reported that they prevented fraudulent claims to the value of almost R2.7bn over the past three financial years. This also points to the problem of car insurance fraud.

There are different types of car insurance fraud that motorists and other pedestrians may attempt, including

• False claims
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• Faking car theft
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• Staged vehicle or personal accidents
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• Faking injuries from an accident

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But how would a dashcam protect you from such car insurance fraud? Let’s find out.

 How a dashcam can save you from false claims

Imagine you are driving back home after a long day of work and are stuck in bumper-to-bumper traffic due to the robots not working because of load shedding. You’ve noticed this one menacing driver recklessly switching and shifting between lanes when they suddenly jump ahead of you and abruptly stop, causing a rear-end collision. Still, thankfully, the damage isn’t too bad, as both cars just have a slight dent. You and the other driver stop to assess the damage and decide to exchange insurance information and resolve the matter later.

After the legitimate accident, the other driver’s insurance claim now includes more serious damages to the body of the car, the windows, and the side mirror. The other driver swears you were at fault in the accident and caused the vehicle damage, but you are not even certain about this, because you don’t remember the driver’s rear-end lights braking before. This is one of the most common insurance fraud scams: a staged car accident.

In such an incident, an onboard camera like Cartrack’s vision camera for individual vehicle owners would help you and protect you from car insurance fraud through video evidence of the events of that day of the accident. With access to this footage, you could still prove your innocence, assess the extent of the damage, and see whether you are the victim of a staged vehicle accident or car insurance fraud.

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Cartrack’s Vision Camera: Capture everything

Cartrack’s vision camera is a user-friendly road-facing recording camera. Users can request footage based on date and time, and download the footage on the Cartrack app. Parents of young teen drivers can watch over their teens by live-streaming from the Cartrack app to ensure they arrive safely every time. Remote retrieval with these cameras is a powerful way for drivers to protect themselves from all sorts of car insurance scams and even reject car insurance claims.

This feature-rich and easy-to-install camera provides users with

• Live-stream video with audio
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• Remote footage retrieval after events via the Cartrack App
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• Live GPS tracking for information on vehicle location

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Dashcams can help you not only protect against fraudulent insurance claims, but also:

• Provides valuable evidence in the event of an accident in your vehicle.
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• Capture pedestrian scams, like trying to jump in front of your vehicle.
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• Continuously record activity around your vehicle including attempts to vandalise your car and other damage to your vehicle.
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• Provide evidence for other drivers and activities you witness.

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For businesses, the more advanced AI detection technology which comes with our SmartCabin cameras doubles the protection from car insurance fraud and other problems.

Let’s unpack this dashcam technology better suited for business vehicles below:

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How dashcams protect your fleet from car insurance fraud

With live GPS fleet tracking, you gain increased fleet visibility to see your driver’s location, performance, and activity, but when your fleet is out on the road, there is no way of telling what happens between your driver, other motorists, and pedestrians.

For example, was your driver distracted by their cell phone while driving and so failed to see the vehicle switching into their lane, or did the other motorist cut too close to your truck driver while changing lanes, causing the accident?

Without any evidence, your driver-truck accidents become he says versus she says, which is difficult to prove to insurers or investigative officers and increases costs for you. This is only one example of an event where a fleet manager will never know if their drivers are being honest about events when something bad happens, like an accident, or whether someone is attempting to scam your driver.

Yes, it is true. Your drivers are also vulnerable to scams and car insurance fraud risks while out on the road, which is why Cartrack offers solutions designed to help you navigate these tricky situations with ease.

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Cartrack’s Vision SmartCabin Camera: See everything to protect your fleet

A fleet dashcam is a perfect solution to protect your drivers and business fleet, but it’s not just your vehicle’s front view that is important; with an in-cabin camera, you can also get a cabin-facing view to ensure your driver’s safety.

The Cartrack SmartCabin is a dual road-facing and in-cabin-facing camera equipped with the following features:

• Forward collision warning sensors: Help prevent possible collisions by audibly notifying the driver of an obstacle ahead of them.
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• AI-detected events (in-cabin camera): This smart camera detects dangerous driver behaviours such as distracted and fatigued driving, mobile phone, and smoking detection to warn the driver to quit dangerous actions.
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• Livestream video with audio: Fleet managers can livestream drives to carry out spot checks and check their activity to enforce responsible and compliant behaviour.
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• Auto-answer in cabin mic and speaker: Facilitate two-way communication between manager and driver, or the Cartrack command centre to address any issues.
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• Remote footage retrieval: Fleet managers can request footage or download footage after events based on date and time.

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A dashcam can protect your business from car insurance fraud on your fleet.

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Protect drivers

In the case of a legitimate accident, that was not the driver’s fault. You can safeguard your driver by using event-based footage and other driver telematics information to help prove your driver’s no-fault and help them avoid unfair claims against them.

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Improve driver performance and accountability

Camera footage can be used to train drivers, help them improve their performance, and increase accountability. Alternatively, by spot-checking drivers and live streaming their activity, fleet managers can ensure productive and responsible working hours.

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Expedite Insurance Claims

Video recording and footage give an account of the events before and after an accident, and this helps speed up your insurance claims process and ensure your vehicle is repaired faster so you can avoid vehicle downtime.

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Choosing the best dashcam: The top five features to look for

Dashcams can protect you and more, but it’s important to choose the right dashcam with these 5 top features to look for when you decide to add this extra layer of security and protection.

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#1 Good battery life and reliable storage

Car insurance fraud scams don’t happen every day, but your dashcam records every journey you take. Imagine if your camera storage was full on the fateful day you or your fleet driver were involved in an accident. A good battery life and enough storage space are the top features to look out for with a dashcam.

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#2 Video image quality and night vision

Not all dashcams are made equal; some have poor video quality; you cannot see the number plate of the vehicle or other details. Buying a dashcam with good video quality is important, especially for live streaming.

#3 Camera affordability

Car cameras are a security investment worth making, but that does not mean your business should go bankrupt by purchasing a camera. The affordability of the camera is something you must consider for yourself and your businesses too.

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#4 Easy set-up and sleek design

Setting up a dashcam should be easy. For example, Cartrack has a plug-and-play option for rental cars, so there is no vehicle damage caused by camera mounting and hardware installation in the vehicle.

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#5 GPS connectivity

An in-built GPS tracker adds some extra functionality to your dashcam and improves its reliability, especially when it comes to car insurance fraud.

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Enhance on the road safety with Cartrack’s Vision Cameras

Vehicle dashcams are the protective tool you, your loved ones, and your fleet need to prove your innocence and avoid car insurance fraud and other scams.

Cartrack’s vision camera solutions are designed to enhance everyday road safety and protect you.

Contact us for a demo here.