What is accident forgiveness?

If you’re not an insurance agent, the factors that go into calculating your insurance rate can seem a little obtuse. The truth is that a number of things affect your insurance rate, including the make and model of your car, where you live, and your previous driving record.

For example, if you’re at fault in an accident one year, you may see a significant spike in your insurance premium when it comes time to renew. If you are in an accident, factors such as your previous driving record, severity, and who is at fault can make your rates go up. Sometimes, this can mean paying as much as a 50% increase on your premium.

Naturally, nobody wants their premiums to spike (and especially not by 50%) which is why some insurance companies offer accident forgiveness as a policy option. Accident forgiveness shields your driving record when it would otherwise be affected by an at-fault accident, ensuring your premium remains the same instead of going up.

Though accident forgiveness usually only covers one at-fault accident, this type of coverage is an easy way to save on insurance in the long run.

Another important thing to know about accident forgiveness is that it’s not carte blanche to drive recklessly. Typically, these policies only cover accident forgiveness for one incident within a certain time period (1-3 years is common). However, other policies cover forgiveness for multiple accidents.

Every insurance company handles accident forgiveness differently. Some providers roll it into your basic policy. For others, it’s an optional add-on. You’ll also need to check whether you qualify for accident forgiveness. If you have previous accidents on your record, this policy may not be available to you. Additionally, if you have violations on your record (for example, speeding tickets) you may be disqualified from accident forgiveness.

The good news is, even if you don’t qualify for accident forgiveness, you may qualify for other amazing discounts that can help you save on our premiums. Just make sure to compare policies to find out which insurance companies and policies are right for you!