Accident forgiveness, how does it work?

[Cameron]

Everytime I hear about accident forgiveness, it makes me wonder, how does it work? Is it only if you rarely get into accidents? I feel like that's always the case in the many commercials I've watched. Is this only if you're at fault? That's what I always thought. Is that correct?

 

[Jerry80]

That's a good question. Accident forgiveness is like an incentive for driving safe. You essentially get a one time out of having to pay extra for your insurance when it's your first ever at-fault accident. It's usually given to people with good driving records.

 

[Dennis]

Accident forgiveness is an auto insurance benefit that may prevent insurance rates from going up as a result of a driver's first at-fault accident. It can be added to a policy or awarded to those with a good driving record.

One accident per policy can be forgiven for six years if you've been accident-free for the last 6 years (no at-fault or partially-at-fault accidents) and you have Accident Forgiveness coverage on your car insurance policy. Coverage applies even if you decide to change your vehicle – as long as you haven't had any additional at-fault accidents.

Coverage applies on a per vehicle basis. You'll typically have to pay extra for accident forgiveness. Some insurance companies offer accident forgiveness as a free perk to qualified drivers with good records while others allow you to purchase it as an endorsement to your auto policy. You may not qualify if you have had multiple auto accidents in the past few years or an excessive amount of speeding tickets or other moving violations on your driving record. The things to be considered if this additional auto endorsement can work for you are.

1. You must stay with your current carrier to avoid a premium increase.
2. To receive the full benefit of Accident forgiveness, it is critical that you must report the car accident to your insurance provider first.

 

[maxrealestate]

Allstate is known for offering this. I have had their insurance for several years now and the way it works is that if you get into an accident, be it your fault or someone else's, your prices will not be subjected to an increase like standard insurance. This means you will be able to afford to have one accident, be it minor or major and it will not be reflected in your cost going up. However, if you decide to change auto insurance later on, such as going with someone else other than Allstate, the accident will be reflected in your record and you can pay more elsewhere.