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.
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.
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.
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