Accident Forgiveness Explained

As competition for your business has increased, auto insurance companies have gone to great lengths to add selling points to their auto insurance policies. This includes coming up with added-value features as well as looking for new ways to market traditional policy features. Accident forgiveness has been marketed heavily in the last few years by auto insurance companies as a way to woo drivers with good driving records.

Accident forgiveness can mean different things with different auto insurance companies. To help you gain a better understanding, here is accident forgiveness explained.

Accident Forgiveness Explained: What is it?

Accident forgiveness, in the most general sense, is simply the notion that your auto insurance company will forgive an accident/claim and not use it against you when calculating your rates at the time of policy renewal. In many cases, accidents are not the only things forgiven. The policy may also forgive speeding tickets and other minor infractions, but certainly not DUI's or reckless driving. Because of the incredibly potential an accident has of increasing the cost of auto insurance, accident forgiveness can save you hundreds, possibly thousands of dollars over time.

Accident Forgiveness Explained: What does it Cost?

This depends on the company you purchase your policy from and, in some cases, your driving history. Some companies will qualify you for accident forgiveness for free as long as you have a good driving history. Other companies may charge you an additional fee to include this as a policy option. It will generally be a small fee included in your premiums.

Accident Forgiveness Explained: How to Qualify?

This will depend greatly on the company and, in some cases, your geographical location. Most companies have some stipulations as to what it takes to qualify. In most cases, new customers can qualify as long as they meet other qualifications. These qualifications generally require you to be accident free for a significant period of time. This can be anywhere from three to five years. You may also have to be without other driving violations (speeding tickets, etc.) or at least kept those violations below a specific level. If you have a poor driving record, it will take some time to qualify as you must prove yourself to be a safe driver.

Accident Forgiveness Explained: Shopping for the Best Policy

Accidents can quickly and significantly increase your auto insurance premiums, making accident forgiveness an important part of your car insurance policy. However, don't get carried away when shopping for the right policy. Tunnel vision that focuses on an accident forgiveness policy can keep you from finding a better overall policy. As you shop for auto insurance, make sure to consider all elements of the policy, such as limits, deductibles and other policy options. You may find a policy that does not offer accident forgiveness, but is a better overall policy that one with it. 

Accident Forgiveness Explained: Shopping for the Best Rates

You may also find a policy that is a better value even if it doesn't offer you accident forgiveness. You find more protection at a lower rate, making the risk worth taking. The only way to find this out is to shop around and compare rates. Auto insurance quotes can be gotten online and compared to find the best rate on the policy offering you the most protection.