Accident forgiveness is a service that insurance companies offer to those who have seen car insurance ads. Insurance companies understand that accidents don’t always mean you’re a bad driver. Accident forgiveness covers your premium payments so that they don’t increase due to one accident. This plan is popular among parents who add children to their policy, and car owners who allow others to use their cars. This plan can help to lower future premiums. But is it worth the cost?
Accident forgiveness is not free. You might think you can buy a plan and be forgiven for any accident. You pay an additional fee when you sign up for your policy. The coverage can be applied to any accident that you have covered. This coverage’s rates vary from one company to the next.
What happens if I buy accident forgiveness but have an accident?
No. This is a common misconception that car owners have regarding accident forgiveness. While your accident will not be credited towards your premiums, it will count when your insurance company renews your policy. You may lose coverage or your premiums will rise. Your accident will still be included in your quote, even if your carrier changes. Your provider will still evaluate your risk levels in the same way regardless of whether or not an accident was forgone. I do not know of any insurance company which includes accident forgiveness in a quote for a policy.
Accident forgiveness coverage does NOT mean you are “forgiven for” any previous accidents. If you have been in an accident and are looking for lower rates, there will be other options. You can improve your driving record by practicing safe driving habits and improving your credit score.
I can understand why consumers choose this coverage. They want to offset future costs if there is an accident. I’m not sure how the accident forgiveness coverage works. It’s not worth the cost. You will only save a little if you have an accident. If you haven’t had an accident, you are just throwing your money away.
If you have had to pay high premiums for insurance due to past accidents, I can see how this could be of benefit. Your insurance costs could skyrocket if you have another accident. It would be smart to increase the coverage in such cases. You may be able to save even more if you have a good driving record.
You have the freedom to choose. This service is now offered by a few insurance companies. It may be easier than you think to get it if you’re interested. It could even save you money depending on the time of your accident. The “forgiveness” period may end when you need to renew your policy, or switch carriers.
Every situation is unique, and each insurance provider is different. Talk to your agent about accident forgiveness, the cost, and how it will impact future insurance policies. When renewing your insurance, make sure you find out whether your accident will be considered. Before you purchase, make sure you have a good understanding of the service.
