If you are in an accident and are found to be at fault, there’s a good chance your car insurance premium will rise on your next payment. Accident Forgiveness Insurance is a type of car insurance coverage that protects your rates from increasing after you cause an accident.
If you cause an accident, your rates are supposed to increase naturally because you have become a hazardous driver, which tends to raise rates.
Insurance companies offer the car accident forgiveness feature to prevent your rates from rising during renewal time when you cause an accident.
Some insurers offer accident forgiveness coverage free, while others offer it as a purchased endorsement. This means you get to pay a higher rate in exchange for the additional benefit provided.
It is important to note that the accident forgiveness coverage only works for a driver’s first-time at-fault accident after a good driving record that has lasted a specific time.
No insurance company offers accident forgiveness coverage in every state, as this coverage cannot be found in California.
I would also like to point out that the coverage applies to one accident per policy and not per driver on the policy.
Some insurers offer forgiveness coverage every three years a driver goes without an accident. However, even if the accident is forgiven, it will remain on your driving record.
Accident Forgiveness Coverage Rules/Requirements
Accident forgiveness insurance is different from what every driver qualifies for. Specific requirements must be met; below are some of them:
- It is eligible for drivers with a clean driving record
- It allows forgiveness for only one fault accident per policy
Benefits of Accident Forgiveness Coverage
The coverage has several benefits available for drivers who cause accidents. They can take advantage of the coverage and enjoy some of the benefits below:
- Drivers can worry less about their rates increasing
- Drivers can keep good discounts
- Drivers have greater peace of mind while driving
- Drivers can get additional savings as their premium will increase as a result of the accident
How Much Does Accident Forgiveness Cost?
Some Car Insurance companies do not charge for accident forgiveness. They offer it in exchange for loyalty to the company.
Other companies charge you specific amounts. For example, Progressive Insurance forgives minor accidents with damages of less than $500 in exchange for loyalty when the driver has been with the company for five years but doesn’t forgive for accidents with higher damages.
Companies like Erie Insurance automatically forgive the first accident if the driver has a good driving record and has been with the company for at least three years.
Why Should I Purchase the Accident Forgiveness Insurance?
You must purchase it when you have high-risk drivers in your household who can cause accidents at any time.
Suppose you compare the cost of insurance without Accident Forgiveness coverage and accident forgiveness coverage. In that case, you will realise the difference is slim and worth the extra cost.
What are the Alternatives for Accident Forgiveness for Good Drivers?
Some drivers find it challenging to purchase accident forgiveness coverage or are not eligible. Below are some alternatives that could be of help:
- Get car insurance discounts
- Get vanishing deductibles by practising safe driving
Can Accident Forgiveness be Bought After an Accident?
No, you cannot buy accident forgiveness after the accident has already happened because this makes you ineligible.
How Long Will an Accident Remain on My Record?
After an accident occurs, it doesn’t automatically disappear even if you purchased the accident forgiveness coverage. The accident remains on your coverage.
The period the accident remains on your driving record depends on where you reside; some states take three to five years, while others take three years.
Do I Need Accident Forgiveness if I Practice Safe Driving?
Safe drivers also need accident forgiveness regardless of how well they drive; the unfortunate reality is that you may be able to control your driving but cannot prevent other drivers.
If you do not purchase accident forgiveness as a safe driver and get into an accident, you will be charged extra, increasing your rates over time.
You can also purchase it to prevent yourself from the mistakes of others if you are so sure of your skills.