Accident forgiveness is a coverage that some companies offer to help ensure your rates do not increase at renewal time after you have an accident. With other policies, you may face a rate increase and surcharge if you are in an accident. Here is a little more information about accident forgiveness.
- Not every company offers accident forgiveness. Some that do may only offer it in certain states. If you move to a new state you could lose the forgiveness.
- Not everyone may qualify for accident forgiveness. Some companies may make you have a good driving record over the last three to five years to qualify.
- Most insurance companies only allow for one “forgiveness” per policy, not per driver on the policy. Each company has different guidelines so you want to make sure to ask your agent before setting up your policy.
- Typically if you get accident forgives at the beginning of your policy you will pay extra for it. An example, Nationwide allows customers to purchase accident and minor violation forgiveness when setting up their policy but there is an added charge. Some companies like Safeco allows you to qualify an accident forgiveness after 3 to 6 years of being insured by Safeco.
- The forgiveness may only apply to your current insurance policy or current company. If you decide to shop around for insurance after an accident remember that other companies may have to charge you for an accident.
Read the fine print
The term Accident forgiveness can be a little deceiving. Some insurance companies agree not to increase your base rates by getting in an accident but that doesn’t guarantee that your cost for insurance will not go up. Some companies won’t increase your base rates but may remove the accident free discount for a certain period of time after an accident. Also some companies will remove the accident forgiveness for the first accident if you are involved in a second accident.
Is it really worth it?
Make sure to know how much it really costs to include accident forgiveness and weight your options. Sometimes accident forgiveness isn’t worth it because of the increased price. If you have a young driver, it is a big advantage to have accident forgiveness. If they get in an accident, your insurance rates may go through the roof without it. Having the added coverage can help your rates stay more stable.
If your looking for a purchase a policy with accident forgiveness look now further than Millennium Brokers. We have multiple companies that offer accident forgiveness. You can get a quote started by visiting our Get-A-Quote page or calling us at 417-773-7822.