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I've had one for years, and honestly, it's paid for itself multiple times over - when it comes to accidents, the video is worth its weight in gold for insurance. That's not paranoid, it's just self-protection, especially if you're driving in a city with heavy traffic or doing long distances regularly. Whether it's necessary really depends on how often you drive and how safe you feel on the road - for people who drive a lot, I'd just recommend getting one.
In an accident without a dashcam, it's often your word against theirs, and then the insurance company just goes with their gut feeling - with video you save yourself all the stress and hassle. A practical tip that a lot of people forget: such a camera should draw almost no power in standby, otherwise your battery will be dead if the car sits for a while. Some models have a parking mode that only records when there's movement and that way saves your battery - that's really useful if you park your car regularly. At the end of the day, it's not a paranoid habit, it's just practical protection in case something actually happens.
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