I have a dash cam in each of our 4 vehicles. In this jurisdiction (Ontario), there's a codified system wherein one driver is automatically deemed to be at fault unless (s)he can prove otherwise. Insurance rates can skyrocket as a result.
Several years ago there was a viral you-tube video of a car deliberately backing into the car behind in stop-and-go traffic on the 401 (a major highway), followed by the guilty driver attempting to shake down the following one for an on-the-spot cash settlement when the drivers met between the cars. That is, until the intended victim pointed out his dash cam and the shake down artist quickly jumped back in his own vehicle and fled. Not only did the erstwhile victim save himself a bundle of cash, the Ontario Provincial Police tracked the crook down by the license plate and arrested him.
For less than $100, a basic dashcam seems to me to be cheap insurance. They are becoming more and more common. In fact, I saw an appeal by police for dashcam footage of a recent incident on Hwy. 400. Of course, they are a double-edged sword: your own dashcam could be used against you much like the "black box" under the driver's seat can be seized by police in an investigation. It's not only the visual record, either. Most cameras record sound and GPS equipped cameras also record your speed frame by frame.
Quality and size varies. Not just resolution, but exposure range are important factors. Ideally the camera can record a clear picture in light conditions ranging from headlights only to bright sunlight at a high enough resolution to pick out details like license plates and at a high enough frame rate to catch all the action while keeping everything beyond the hood in perfect focus and retaining the recordings for hours.
In reality, only the most expensive cameras come close. But you can get a reasonable image for under $100. The focus may drift slightly as temperature of the inexpensive lenses changes, but even if you can't quite read the plate number of the car ahead, that driver's overall actions will be clear enough to a cop or insurance company should you need to prove your innocence.
Some things I look for:
Discrete. Small and tucked up by the rear view mirror. I don't want to advertise it's presence so I can decide whether or not I release the video. Also, I don't want to block my own vision of the road. I avoid long complex mounts that can be adjusted in three axis and suction cups in favour of a simple mount with double-sided tape
Reasonable low-light performance. Actually, it's amazing how much even a cheap camera can catch, but it may take some contrast and brightness adjustments in the playback software to bring it out. More expensive units can have remarkable performance even when the only lighting is your headlights.
Auto start with the ignition. The camera is no good unless it's running and I'm likely to forget to turn it on when I jump in the car. Most cameras can be set to turn themselves on and off automatically if plugged into an accessory outlet that is switched by the ignition.
On-board power. After an accident, I want to be able to take the same camera and use it as a handheld to record the aftermath before anything gets moved or changed. That said, I found my first couple of cameras, which used Nokia-style Chinese cell phone batteries, to be problematic as the batteries age. Now I use cameras powered by high-capacity capacitors instead of batteries. They won't last long as a hand-held recording device compared to a battery powered unit, but the capacitors are far more heat tolerant -- important in a device that spends much of it's life 2" from the windshield in a closed vehicle.
Seamless transitions. The camera records in blocks of usually 2 to 10 minutes each. They are time-stamped and the oldest blocks are continuously overwritten. Older, slower SD cards and/or cameras suffered from a few seconds gap between segments while the current video file is saved and the next one started. With my luck, that would be the moment something happened.
Impact sensor: a 32GB card is sufficient to store several hours of video at 30 frames per second. But even so, I don't want that critical block overwritten because someone was playing with the camera afterwards and forgot to shut it off. A shock sensor will tell the camera to lock the current segment so it cannot be overwritten.
There's all sorts of other options available if you want to spend the money. Dual cameras, remote storage, GPS speed sensors, etc. etc. There are many websites devoted to the subject that go into far more depth than I can. But personally, I don't figure I need all those bells and whistles. Your mileage may vary.