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Find Out Which Company Offers Accident Forgiveness Auto Insurance?

What Exactly Is A Accident Forgiveness Car Insurance Coverage?

An accident forgiveness auto insurance policy is a car coverage feature that protects driver’s driving record from getting adversely affected by the insurer’s rating system especially he meets with an “at-fault” accident. This, in turn, prevents premium from shooting up. Nevertheless, such type of coverage does not pay damages for all “at-fault” accidents. The insurance company may pay damages for only the first “at-fault” accident and that too if the driver has a clean driving record. The process for claiming accident forgiveness damages is likely to vary from company to company but you need to primarily inquire whether you are eligible to get accident forgiveness insurance.

Things That You Need To Know About Car Insurance Accident Forgiveness

The premium for auto insurance forgiveness policy will not increase at the time of renewal but if you decide to switch over to a new insurer, the premium rate will be higher. Additionally, the following things may also hold true.

  • Not all car insurance companies offer accident forgiveness – Only some companies provide auto insurance first accident forgiveness coverage. Besides, you will also have to check out if your state’s insurance rules and regulations permit such kind of proposition. Many states don’t allow buyers to buy accident forgiveness covers.
  • Not everyone qualifies – Most of the insurance companies with accident forgiveness feature want drivers to have clean driving slates. To that effect, you and any other driver on the policy must not have a blot on driving record for the last 3 to 5 years.
  • Accident forgiveness is not an unlimited pass – Leading companies may only extend coverage for one at-fault accident and not for every driver whose name is on the policy while few others like Farmers & Travellers may grant forgiveness only once in 3 years.
  • You’ll usually pay extra for it – Accident forgiveness coverage is always an add-on feature and so, a driver has to spend extra money for getting it. Many companies may offer this feature as a policy upgrade and others like Progressive might provide auto insurance forgiveness program as a perk for loyalty.
  • The “forgiven” accident stays on your driving record – A forgiven accident may be reflected on your driving record as most of the insurers report accidents to DMV. This is because an accident will involve police report and as a result, the premium rates will rise in years to come.

How To Keep Rates Down With Accident Forgiveness Insurance Companies

Car insurance first accident forgiveness coverage is often seen as a gimmick that insurers use to make more profits rather than benefiting drivers. And from the buyer’s point of view, there is little clarity regarding how exactly this feature really functions.

Avoid costly rate increases with Accident Forgiveness – Some companies which provide accident insurance coverage feature may hike premium. Hence, it could be advisable for you to stay away from these companies as you already have basic liability coverage offered by your state’s law for at-fault accidents. But first, you will have to verify whether your state allows at-fault system.

Save money in the long term – There could be many other ways for saving money on car insurance first accident forgiveness coverage premium. These may include things like taking up a course for learning defensive driving techniques or driving safer cars. Such actions on your part can be more worthwhile than buying an accident coverage feature which will only increase your premium.

Benefits Of Buying Accident Forgiveness Coverage

  • Enjoy guaranteed financial protection while driving car.
  • Existing insurer will not hike premium even if you meet with an accident.
  • Enables easy accumulation of good driver discounts.
  • Since premium will not increase, some money can be saved during policy renewal

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