What is Accident Forgiveness Insurance?

What is Accident Forgiveness Insurance?

Is Accident Forgiveness Necessary?

As with most things in life, the question of whether you need accident forgiveness insurance is a resounding-maybe.  What it basically does is it protects your driving record in the case you are involved in an accident which is your fault.  It may keep your insurance premiums for going up, which it usually does after filing a claim.

An auto accident can be injurious on many levels.  First of all, there’s the physical injury.  Then comes the repair problems, then—perhaps on the list, but still there—your car insurance.  More than likely, the premiums will jump up and make things even worse.  Your driving record could be affected, and you could be paying more for years to come.

Accident Forgiveness is a policy that not many people are familiar with.  Some insurance companies have begun to include it in their advertisements and promises to give the insured peace of mind as well as hints at financial security.

There must be a Catch.

Again, the answer is—maybe.  You must have a clean driving record to apply for this type of insurance.  If you do, and then are involved in an accident, your premium will not increase.  That is for your first accident only, keep in mind.

In addition, some companies will drop your deductible by as much as one hundred dollars for every year you keep that clean record-after that first incident.  Keep in mind that every company is different, and their accident forgiveness policy rules and regulations differ.

Some companies require that you upgrade your coverage plan to get this type of policy.  So, while you are planning for what may happen in the future, you are indeed paying more than what the standard, basic policy coverage.  There’s the catch you might have been looking for.

While some individuals may be wise to consider the accident forgiveness coverage, remember you have to qualify for it.  If you’re already paying more with your current insurance coverage because who have had other incidents, it may be worth looking into.  As mentioned previously, every company has different rules and regulations.

Conclusion

For many, accident forgiveness insurance is much like being stuck between a rock and a hard place.  You must have a clean driving record to get it; but, if you’ve had an accident in the past, do you really need it? 

The best place to start asking questions is with your insurance company.  Whether it is a brick and mortar establishment or an on-line agency, talk to customer service and ask questions.  Compare quotes.  Compare companies.  When it comes to saving money now, or in the future, it never hurts to ask.


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